America faces a challenge to deliver on AUKUS submarine deal, US Navy head concedes

A US Navy executive has conceded they have “a long ways to go” to increase shipbuilding to the necessary level to deliver on an agreement to provide nuclear-powered submarines to Australia.

Navy representatives have been questioned by members of Congress who are concerned about the Biden administration’s budget proposal to halve next year’s procurement of the submarines.

The proposal, to build one Virginia-class submarine instead of two, comes despite a significant shortfall in America’s own fleet, and a need to increase production to provide submarines to Australia under the AUKUS deal.

Members of the congressional Seapower and Projection Forces subcommittee on Wednesday local time voiced concerns that the budget decision could worsen existing skill shortages and supply chain problems, which have been hampering shipbuilding since the pandemic.

“The decision to include only one Virginia-class submarine in the budget request is not aligned with the two-plus-one cadence that was predicated under the AUKUS agreement,” Republican Congressman Trent Kelly, who chairs the subcommittee, told the hearing.

“Sending a strong demand signal is essential for maintaining industrial capabilities and international confidence in our naval production.

“Reducing our order from two boats to one in this year’s budget does not inspire confidence, nor does it forecast ability to our industry partners or allies.”

The US Navy is only building about 1.3 submarines a year, and is not expected to consistently hit its target of two boats a year until 2029.

The navy’s assistant secretary for research, development and acquisition, Nickolas Guertin, said a recent review had led to significant improvements in shipbuilding capacity, but “we’re not there yet”.

“We need to get back to [building] two boats per year for submarines, and then even get past that, up to two-and-a-third boats, so we can honour our commitments with our AUKUS partners,” he told the subcommittee.

“We are making very good strides in that direction.

“The improvements we’re making in the ship industrial base, including workforce training and investments in capacity, have been bearing fruit, but we have a long ways to go.”

Before the hearing, Democratic Congressman Joe Courtney circulated a memo to his colleagues that highlighted “growing momentum” in the submarine industrial base. He said it was experiencing a dynamic recovery and remarkable growth, but procurement stability was needed to keep things on the up.

“It is important to remember that cutting procurement going back to the 1990s is precisely the reason why the submarine industrial base has eroded over the last 30 years,” Mr Courtney told Wednesday’s hearing.

In February, the president of a labour union that represents some shipyard workers wrote a letter to US President Joe Biden urging him to prioritise funding for two Virginia-class submarines a year for 2025 and beyond.

Brian Bryant, from the International Association of Machinists and Aerospace Workers, said it was necessary for the long-term health of the domestic shipbuilding industrial base.

“This industry cannot thrive as a feast-or-famine endeavour,” he wrote.

“A clear market signal of consistent two-per-year funding is absolutely vital to maintain and grow the necessary highly-skilled workforce and promote the industry partnerships needed to ensure success in efficient submarine production.”

Under the AUKUS pact, Australia plans to buy at least three Virginia-class submarines from the US from the early 2030s, and provide more than $4.5 billion to boost America’s submarine industrial base.