A former Australian defence minister has opened a formal inquiry into the country's multibillion-pound submarine programme, raising questions about a controversial deal with the UK and the secrecy surrounding it. Sources confirm that the investigation, led by former minister Peter Reith, will scrutinise the AUKUS agreement and the transfer of sensitive nuclear propulsion technology to Australia.
Documents obtained by this paper reveal that the inquiry will focus on potential conflicts of interest and the handling of public funds in the deal, which is estimated to cost upwards of £150 billion over its lifetime. The inquiry is expected to call witnesses from the UK Ministry of Defence and the Australian Department of Defence, as well as executives from BAE Systems and Rolls-Royce, the key contractors on the project.
Reith, a former Liberal Party minister, has a reputation for taking on entrenched interests. His appointment has rattled officials in both Canberra and London, who have sought to keep the submarine deal away from parliamentary scrutiny. The inquiry is set to examine whether the UK defence industry is profiteering at the expense of Australian taxpayers.
This is not the first time questions have been raised about the deal. Whistleblowers have alleged that the cost estimates were deliberately kept low to secure political approval, with the real price expected to balloon. Internal memos suggest that the UK's Ministry of Defence was aware of these concerns but did not share them with Australian counterparts.
The inquiry will also look into the role of consulting firms that have advised both governments. Sources confirm that several firms with close ties to the UK defence establishment were paid millions to produce optimistic assessments of the programme. One former official described the situation as "a cosy club that no one wants to break up."
The stakes are high. If the inquiry finds evidence of misconduct, it could delay the submarine programme, which is central to Australia's plans to counter China's naval expansion in the Indo-Pacific. But for critics, the bigger issue is accountability. "Taxpayers have a right to know how their money is being spent," Reith said in a statement. "This deal has been cloaked in secrecy for too long."
A spokesperson for the UK Ministry of Defence declined to comment, citing the ongoing inquiry. But sources close to the department acknowledge that the investigation is a serious threat to the deal's timeline. BAE Systems and Rolls-Royce did not respond to requests for comment.
As Reith prepares to release his first findings, the pressure is mounting on both governments to come clean. The inquiry is expected to last six months, with a final report due by the end of the year. For now, the architects of AUKUS have some explaining to do.
