The Commonwealth revealed over the long weekend that it has agreed to compensate Naval Group $830 million for the cancellation of the Attack class program in favour of the AUKUS agreement to acquire nuclear-powered submarines.
"The Australian Government has finalised negotiations with Naval Group to conclude the Attack class submarine program," PM Anthony Albanese said. "The former government made the decision to terminate the contract on the basis of advice about capability requirements for the ADF—advice that was accepted by Labor in Opposition.
"We have reached a fair and equitable settlement of €555 million (around $830 million) with Naval Group. Now that the matter is resolved we can move forward with the relationship with France.
"We deeply respect France’s role and active engagement in the Indo-Pacific," Albanese continued.
"Given the gravity of the challenges that we face both in the region and globally, it is essential that Australia and France once again unite to defend our shared principles and interests: the primacy of international law; respect for sovereignty; the rejection of all forms of coercion; and taking resolute action on climate change.
"I look forward to taking up President Macron’s invitation to visit Paris at an early opportunity, and to continuing to work closely with him as we deepen the strategic partnership between our nations."
Naval Group issued a short statement agreeing that the outcome was 'fair and equitable.'
"Naval Group and the Commonwealth of Australia have reached a fair and equitable settlement to bring a conclusion to the Future Submarine Program," the company said. "Naval Group has worked closely with and assisted its partners and subcontractors in Australia and France.
"Naval Group pays tribute to all individuals, teams, and its partners who have worked and delivered on this program for more than five years. Naval Group also recognises the important work of those who contributed to the discussions leading to this agreement."