Thursday 16 June 2022 01:28 AM Australia overpaid for cancelled French subs so Anthony Albanese could repair ... trends now
View
comments
Anthony Albanese has tried to buy back Australia's relationship with France by paying hundreds of millions of dollars more than was needed to axe the abandoned submarine contract.
The prime minister confirmed at the weekend that Australia is paying $835 million to French Government-owned Naval Group shipbuilders to ditch the $90 billion diesel subs deal.
But details of the contract have now been leaked that reveal Australia was only required to pay a $90 million 'break fee' to the shipyard to cancel the order.
Australia is paying $835million to French government-owned Naval Group shipbuilders to ditch the $90billion subs deal but the contract only included a $90million fee if it was axed
There was no compensation agreement written into the deal if it was scrapped - but Australia paid an additional $745 million over and above what was required.
Even if the order had moved on to the next stage of development, Australia would still only have been liable to a $250 million compensation fee, the AFR reported.
The bonus extra payment to
