Budget Resources
Dr Adam Broinowski and Dr
Robyn Prior
Australia has a long-standing, though small, nuclear
industry that supports nuclear applications in areas such as medicine, research
and agriculture.
In September 2021, the Australian
Government announced a new Trilateral Security
Partnership between
Australia, the United Kingdom and the United States (AUKUS). This partnership will
catalyse a significant capability shift to enable the design and implementation
of the nuclear-powered submarine (SSN) program. The AUKUS arrangements are
discussed further in the Budget review 2023–2024 article, ‘Defence’.
To support the initial
implementation of the SSN program, $4.5 billion will be provided over
10 years from 2023–24 (and $482.7 million per year ongoing, Budget
measures: budget paper no. 2: 2023–24,
pp. 94–96). The Budget provides a breakdown of this amount, which will
fund a range of specific measures across multiple
portfolios. This article will discuss some of these measures.
Challenges
Australia faces a distinctive set of circumstances and challenges
in the design and implementation of the nuclear-powered submarine (SSN) program.
These challenges include:
- establishing
and maintaining the distinction between civil and military functions, technologies,
regulatory regimes and personnel in Australia’s nuclear industry to deliver a
nuclear submarine program through multiple national agencies and their
counterparts in the UK and US. The Australian Nuclear Science and Technology
Organisation (ANSTO) oversees the management and operation of a single nuclear
reactor, which is used for nuclear medicine manufacture and other scientific
purposes.
- building
the full suite of skills, facilities and institutions along with appropriate
regulatory and legislative architecture to support sufficient stewardship of
nuclear technologies and materials involved in both defence and non-defence
activities. Australia’s nuclear science workforce is small, and has to date needed
to manage the storage
and disposal of only low-level and intermediate-level radioactive waste. The
trilateral SSN program requires a large,
skilled and capable workforce to design, deliver and operate nuclear
submarines (including Virginia-class and SSN AUKUS boats, while phasing out the
Collins-class submarines) and their naval ports and shipyards. Overall
management of the program also involves the sensitive issue of siting, both of a
naval submarine base and high-level radioactive waste storage and disposal
facilities.
- managing
the diplomatic complexities with respect to the wide-ranging strategic implications
of the AUKUS agreement (Pillars I and II) and Australia’s relations with its
partners in the Indo-Pacific region.
- satisfying
Australia’s obligations under international and domestic law.
While the Coalition supports the
AUKUS SSN program overall, some Coalition senators and members have made site
recommendations for nuclear waste and naval submarine ports. Some Independents and non-government organisations (NGO)
are more critical of the AUKUS SSN program. Independent positions have
focused on the costs
of the nuclear submarine program, including contingencies, and argue for an existing
tax package to pay for it. Some relevant NGOs
have expressed concerns over perceived
proliferation and safety risks incurred from the program, as well as the diversion
of monies that could otherwise be used to assist with the cost of living,
improving education, securing energy transition and avoiding a long-lived
nuclear waste burden.
New
entities and regulatory frameworks
As announced
on 6 May 2023 and described in Budget
paper no. 2 (p. 94), a new Australian Submarine Agency (ASA) will
be allocated $4.2 billion over 10 years from 2023–24 (and $482.7 million
per year ongoing) to support the initial set-up and ongoing operation of the
ASA in managing Australia’s acquisition of a conventionally-armed,
nuclear-powered submarine capability from ‘cradle-to-grave’.
The ‘Public
sector: new entities, and equity investments in companies’ Budget review
article provides further information.
The Budget will also provide $87.2 million over
2 years from 2023–24 to support initial regulatory activities and the
development of regulatory standards and frameworks, as well as
non-proliferation and safeguard arrangements. Specific measures include:
- $21.9 million
over 2 years from 2023–24 for the Australian Safeguards and
Non-Proliferation Office to support non-proliferation and safeguard
arrangements with the International Atomic Energy Agency (Budget
paper no. 2, p. 95). Australia will continue to require capacity
to negotiate proliferation
concerns in respect to AUKUS. These concerns have been expressed
by several countries (Budget
paper no. 2, p. 95). This may entail establishing a clear ‘firewall’
between military and civil aspects of its nuclear program.
- $25.2 million
over 2 years from 2023–24 to the Australian Radiation Protection and
Nuclear Safety Agency (ARPANSA) for nuclear licensing, advice and services in
support of the SSN program (Budget
paper no. 2, p. 95)
- $3.1 million
over 2 years from 2023–24 to the Department of Health and Aged Care for
radiation health and safety advice and regulatory review relating to the SSN
program (Budget
paper no. 2, p. 95)
- $16.3 million
over 2 years to ANSTO to provide advice and support (Budget
paper no. 2, p. 95)
- $7.9 million
in 2023–24 to the ASA towards a new Australian Nuclear-Powered Submarine Safety
Regulator and the development of nuclear regulatory standards and frameworks (Budget
paper no. 2, p. 95)
- $7.6 million
over 2 years from 2023–24 to the Department of Climate Change, Energy, the
Environment and Water to conduct environmental regulation and assessments based
on legislation relating to the SSN program (Budget
paper no. 2, p. 95).
The Defence
Legislation Amendment (Naval Nuclear Propulsion) Bill (2023) has been
introduced to maintain the existing regulatory framework to manage Australia’s
civil nuclear industry, while
not limiting the performance of regulatory functions in respect to
nuclear-powered submarines.
A full discussion of the relevant domestic legislation and
international treaties and obligations is beyond the scope of this article. Further
guidelines in international
nuclear law could assist Australia’s nuclear program with respect to
regulatory development, and with particular attention to potential
liability and compensation in the case of accidents
involving nuclear submarines and supporting infrastructure.
Additional budget measures include:
- $52.7 million
over 2 years from 2023–24 for the Department of Foreign Affairs and Trade
(DFAT) for international policy advice and diplomatic support for the SSN
program (Budget
paper no. 2, p. 95)
- $2.4
million over 2 years from 2023–24 to the Attorney-General’s Department for
legal and policy advice for the SSN program, including treaties and
international agreements (Budget
paper no. 2, p. 95)
- funding
over 2 years from 2023–24 for ANSTO to develop a business case for a new
facility to support Australia’s sovereign nuclear security science capability (Budget
paper no. 2, p. 167, amount ‘not for publication’). The ANSTO
research infrastructure decadal plan 2022–2032 describes the
establishment of a Nuclear Security Science Facility as a potential priority
area of nuclear stewardship (p. 106).
Expanding Australia’s sovereign
workforce capability
Education, training and skills in nuclear science are a
central priority for the Australian nuclear-powered submarine program. The
Government is developing an AUKUS submarine
workforce and industry strategy to support the delivery of SSNs to the
Australian Defence Force, which is anticipated to create around 20,000 jobs
over the next 30 years. Current budget measures to support education,
skills and training in this sector include:
- $128.5
million over 4 years from 2023–24 to the Department of Education. This includes
$127.3 million over 4 years from 2023–24 for 4,000 additional
Commonwealth-supported higher education places, including at least 800 places
for South Australian universities (Budget
paper no. 2, p. 94). The Portfolio budget
statements 2023–24: budget related paper no. 1.5: Education portfolio
(p. 17) further states these places will focus on STEM disciplines in
engineering, computer science, mathematics, chemistry and physics, and psychology
and management, to support the AUKUS initiatives. Additionally, $1.1 million
over 2 years from 2023–24 will be provided to support the development and
delivery of education, skills and training initiatives for the SSN program (Budget
paper no. 2, p. 96).
- $3.9 million
over 2 years from 2023–24 to the Department of Employment and Workplace
Relations for a dedicated defence vocational skills taskforce (Budget
paper no. 2, p. 95; Portfolio budget
statements 2023–24: budget related paper no. 1.6: Employment and Workplace
Relations portfolio, p. 16)
- an
unpublished equity injection over 5 years from 2023–24 to Australian Naval
Infrastructure Pty Ltd for early-stage design and works on a submarine
construction yard, as well as for the design of a Skills and Training Academy
to be located in South Australia (Budget
paper no. 2, p. 96).
While Universities
Australia, Group
of Eight and the Australian
Technology Network of Universities have welcomed funding to support
additional higher education places, Dr Edward Obbard from the University of New
South Wales suggests it will be ‘incredibly
difficult’ to meet a schedule that may require more than 8,000 people
with nuclear training to build and service nuclear-powered submarines. He
estimates that more than 200 subject matter experts will be needed at the requisite security levels for
high-level
decisions with respect to SSN-AUKUS.
The above portfolios will need to accommodate a major
recruitment, training and retainment effort to ensure Australia’s safety,
success and credibility as a nuclear operating nation. As announced by Defence
Minister Richard Marles on 22 March 2023, $6
billion will be invested over the next 4 years in skills and development,
which will include embedding Australian military and civilian personnel in the
Royal Navy (UK), US Navy, and within UK and US SSNs. It has been suggested that more
than double the staff required for the current Collins
class submarines will be necessary to support and operate new submarines.
Furthermore, as observed by a former Royal Navy Commander and naval engineer,
to attract and retain competencies over multiple generations, the Royal
Australian Navy and associated agencies would need to clearly
demonstrate viable career pathways to potential submariners and marine
engineers.
Radioactive waste management
Under the AUKUS agreement, the military reactors for AUKUS SSNs are to be manufactured in and
procured from the UK and incorporated
into the Australian-built and operated nuclear submarines as permanently sealed units. These
compartments will reportedly remain unopened for the operational life of the
submarines, after which time they will be dismantled and all radioactive waste
generated through the nuclear submarine program will be separated and graded, and
then stored in appropriate repositories in Australia.
Currently, Australia’s radioactive waste is generated from a
variety
of medical, industrial, scientific and agricultural applications. This low-level
and intermediate level radioactive waste is being temporarily
stored in over 100 locations around the country. The Parliamentary
Library publication, Radioactive
waste management in Australia 2012–2022: a chronology, describes the
efforts over many decades to establish a Commonwealth facility for the
permanent disposal of low-level radioactive waste.
The Australian
Radioactive Waste Agency (ARWA) was established in July 2020 to manage
radioactive waste. This includes the planned establishment of the National
Radioactive Waste Management (NRWM) Facility for permanent disposal of
low-level radioactive waste and temporary storage of intermediate-level
radioactive waste. The Budget will provide $304.5 million over 7 years
from 2023–24 (and $38.7 million ongoing from 2030–31) for ARWA, $162.2 million
over 7 years from 2023–24 to establish the NRWM Facility and $9.7 million
over 5 years from 2023–24 to develop a long-term disposal pathway for
intermediate-level waste (Budget
paper no. 2, p. 166).
Australia does not create or store high-level radioactive
waste. Under the AUKUS
agreement Pillar 1, Australia has committed to manage all radioactive waste
generated from the SSN program in Australia. As stated
by the Defence Minister Richard Marles, the disposal facility will be
needed in the 2050s at the end of the operational life of the first of the SSNs
and will be located on Defence land. As described in Budget
paper no. 2 (p. 95), ARWA will receive $5.2 million over 2 years
from 2023–24 to support the ASA to develop management, storage and disposal
arrangements for spent nuclear fuel (high-level waste) and radioactive nuclear
reactor components (high and intermediate-level waste).
There is currently no operating, permanent disposal solution
for high-level radioactive waste anywhere in the world. The world’s
first permanent high-level waste repository is being constructed in
Finland.
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