Australia has agreed to shell out $589 million (AU$835 million) in compensation to French shipbuilder Naval Group after killing a major submarine deal last year as part of the AUKUS pact with the United States and Britain, the latest effort to smooth over a diplomatic spat sparked under the last administration.
Prime Minister Anthony Albanese announced the offer on Saturday morning, telling reporters the arrangement would save tax dollars while using the opportunity to slam ex-Prime Minister Scott Morrison for presiding over “the most wasteful government in Australia’s history.”
“This is a saving from the [AU]$5.5 billion that Senate estimates was told would result from that program,” said the recently elected PM, referring to the ill-fated deal with the French firm, adding that the initiative “still represents an extraordinary waste from a government that was always big on announcement but not good on delivery.”
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