finance
US Approves $275 Million Contract for Aukus Submarine Program
The United States has approved a $275 million contract awarded to Electric Boat as part of the Aukus security pact. The deal supports Australia's acquisition of nuclear-powered submarines with assistance from the US and UK. Separately, Harvey Norman faces a class action over allegations of misleading advertisements.
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The United States has approved the first major contract under the Aukus security pact, according to reports. The $275 million deal was awarded to the American company Electric Boat and announced by the US government on Thursday. This contract is part of the 2021 agreement involving Australia, the UK, and the US.
Under the Aukus deal, Australia will acquire nuclear-powered submarines with support from the UK and the US. The pact also includes cooperation on military technology. The approved contract, funded by Australia, covers support engineering, technical, design agent, and design transfer activities provided by the United States.
The Aukus security deal was established in 2021 to enhance defense capabilities among the three nations. It focuses on submarine technology and other military advancements. This recent contract marks an initial step in implementing the submarine acquisition component of the agreement.
Details on the class action were not specified in the reports. A statement on the gas industry noted that it is profitable and pays income tax, emphasizing that companies should pay the proper rate on profits. The statement highlighted Australia's role as an energy exporter and the need for a fair return on resources. It also acknowledged limitations in certain actions regarding the industry.
