- Employment and education impacts
Skills shortages
6.1A number of submitters to the inquiry raised concerns about the potential shortage in the Australian workforce and skills required to implement the AUKUS program. One submitter, The Australia Institute, raised this issue and stated that Australia did not currently possess the knowledge to engineer the technology required by the nuclear-powered submarines. Mr Allan Behm stated that this current knowledge gap would have an impact upon Australia’s capability sovereignty as only officers within the United States of America (US) Navy would be fully familiar with the operations of the submarines.
6.2Mr Behm suggested that this skills shortage could be addressed but stated that there would be ‘huge’ costs to develop the professional, technical and operational expertise required for the construction and operation of the submarines. He also highlighted that there were already existing pressures on the manufacturing and construction sectors and that any policies to address skills shortages could not be made in isolation from these pressures.
6.3Similarly, the Royal Institution of Naval Architects (RINA) stated that while supportive of the Agreement, they agreed there was currently a skills gap. At the second public hearing in Canberra, Mr Robin Gehling said that one of the two Australian education institutions that offered naval architecture courses currently enrolled fewer than 20 students per annum and that the AUKUS naval shipbuilding program would require approximately 100 per year. He further emphasised that the complexity in designing, constructing and operating the submarines and the lengthy timeframe, potential loss of expertise, workforce recruitment and workforce management must be ‘taken into account to ensure safe and reliable outcomes’.
6.4When asked by the Committee about the current skills gap in Australia, the Australian Nuclear Association (ANA) agreed that while there was currently a shortage of workers skilled in areas required, they believed that the staged design of the Agreement gave Australia enough time for the shortage to be addressed.
6.5The Australian Submarine Agency (ASA) noted that they were seeking to address this gap by working with the tertiary and vocational education sectors to create incentives and upskill the Australian workforce, citing the announcement of 4,001 Commonwealth-supported STEM placements as a specific initiative to address the skills shortage. The ASA also highlighted ongoing training programs to upskill Royal Australian Navy personnel and ensure their ability to operate nuclear-powered submarines and related technologies.
6.6When asked by the Committee about the forecast number of submariners required by the Australian Navy to operate both the Virgina class submarines and the Australian built SSN-AUKUS submarines, the Department of Defence stated that they would require a larger contingent of submariners in the Navy to meet the AUKUS program’s needs. Commodore Michael Jacobson said that the Navy would need to increase the figure of 900 submariners to 3,000 by the early 2050s, but that the length of the program afforded them the time necessary to do so and that the Navy was achieving the growth targets required to meet their capability requirements.
Employment and education benefits
6.7The employment and education benefits of the AUKUS program were identified in evidence presented to the Committee. ASC Pty Ltd, who are jointly responsible for building the nuclear-powered submarines, said that the Agreement would create jobs and supply chain opportunities. They stated that they were currently recruiting, were creating a workforce plan for ongoing recruitment and skills uplift, and had already launched large graduate and apprentice recruitment programs.
6.8The ASA described the AUKUS program to the Committee as ‘an unparalleled opportunity for our nation’, stating that the program would create approximately 20,000 jobs over 30 years across industry, the Australian Defence Force and Australian Public Service. The ASA stated that the total number of jobs included the 4,000 required to design and build the infrastructure for the submarine construction, 6,000 to support the submarine build, 3,000 to support submarine activities at Henderson and 3,000 to upgrade HMAS Stirling in support of AUKUS. The ASA further stated that the long length of the Agreement would result in many of the jobs created by the AUKUS program lasting ‘well into the 2050s’.
6.9The variety of the jobs created by the AUKUS program was touted, with ASA stating that jobs created would include lawyers, policymakers, nuclear experts, high-tech STEM roles, project managers, financial experts and manufacturers.
6.10In answers to questions on notice from the Committee, the ASA expanded on the education benefits provided for by the AUKUS program. In addition to the 4,001 Commonwealth-supported STEM placements, the Australian Government has announced $68.4 million for initiatives delivered through a new Skills and Training Academy in South Australia and $16.3 million to establish the Nuclear-Powered Submarine Student Support Scholarships Program. The program is expected to deliver 3,000 scholarships for students studying undergraduate STEM courses relevant to the nuclear-powered submarine enterprise.
6.11The ASA detailed ongoing programs that support Australians from the nuclear-powered submarine enterprise in undertaking undergraduate and postgraduate nuclear studies. They also highlighted placements at Pearl Harbor Naval Shipyard in the US for ASC Pty Ltd personnel undertaking training relating to nuclear and non-nuclear skills.
Committee comment
6.12The Committee believes the potential shortage of skills required to implement the AUKUS program is a significant issue but was encouraged to hear about the initiatives already being undertaken to address the shortages. The Committee is satisfied that the relevant areas of government are cognisant of the issue and that it can be addressed through continued hiring and training initiatives from government and private industry.
6.13The Committee believes that by Australia working with AUKUS partners to build the pathways for international placements, the Agreement presents a unique opportunity to upskill Australia’s domestic industrial workforce. Australia will retain and benefit from this upskilled workforce for the life of the Agreement and beyond.
6.14The jobs created throughout the life of the AUKUS program is good news to the Committee, as is the longevity of the employment opportunities that will be created. The Committee sees the skills shortage as an opportunity for a diversified workforce and the growth in employment to be in Australia’s interests.
6.15From the evidence provided throughout this inquiry, the Committee agrees the Agreement is a whole-of-nation undertaking that will see around 20,000 secure high paying jobs created across Australia, with unprecedented opportunities for trades and tertiary educated workers alike.
6.16The Committee recommends that the Australian Government launch an AUKUS career and employment opportunities promotion campaign and further enhance existing STEM and traditional trades engagement programs for local schools and tertiary education providers.