Peter Garrett Leads Public Inquiry Into $368B AUKUS Submarine Deal, June 03

Former Labor minister Peter Garrett launched a public inquiry into Australia’s $368 billion AUKUS submarine deal on June 3, 2026. The inquiry comes after the government agreed to accept three used US submarines instead of the original two used and one new arrangement. Labor backbenchers now question whether the United States can deliver on its commitments and whether the deal needs rethinking.

How the Deal Changed

Defence Minister Richard Marles announced over the weekend that Australia would acquire three second-hand Virginia-class submarines from the US rather than the original mix. Marles said this shift would reduce complexity and save taxpayers money. The change sparked immediate criticism from Labor backbencher Ed Husic, who questioned whether the original caucus vote remained valid given the altered terms.

Who Is Leading the Inquiry

Garrett leads a five-person commission including former WA Labor premier Dr Carmen Lawrence, retired Admiral Chris Barrie (former Chief of Defence Force), Leanne Minshull (co-CEO of the Australia Institute), and Karina Lester (Yankunytjatjara woman). The inquiry has raised more than $26,000 through crowd-funding and gained backing from multiple unions and peace organisations. The commission will assess whether nuclear submarines enhance Australian security, examine regional implications, and evaluate cost-effectiveness and delivery timelines.

Why Labor Is Divided

Ed Husic broke ranks in a caucus meeting to call for a “Plan B” if the US cannot deliver submarines as promised. He told reporters he questioned whether the reconfigured deal should proceed. Husic raised concerns about sluggish American submarine production rates and whether the US would have any vessels to spare for Australia. Independent Senator Jacqui Lambie said Australia was getting “trash” and accused the government of misleading the public.

What Defence Officials Say

Defence Secretary Meghan Quinn and Chief of Navy officials defended the shift to used submarines, saying they were the best option and would remain in service for more than 25 years. Defence Industry Minister Pat Conroy said the vessels would be cheaper and more effective than originally planned. However, Dr Emma Shortis from the Australia Institute said the change was an admission of serious policy failure, noting the US submarine building industry moves too slowly to meet its own requirements.

Final Thoughts

The $368 billion AUKUS deal faces unprecedented scrutiny as Labor fractures over delivery risks and the government accepts used submarines instead of the planned mix. The public inquiry signals deep doubts about whether Australia will get the capability it paid for.

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