THE government must consider the nuclear option for the next generation of submarines, with US Virginia class "nukes" far more capable and cheaper than anything else Australia could acquire, a new study says.
A paper by analyst Simon Cowan says leasing up to eight Virginias from the US would cost $24-27 billion, which was competitive with proposals under consideration for conventionally powered boats.
Mr Cowan, from the conservative think-tank the Centre for Independent Studies, said Labor had dismissed the nuclear option out of hand, principally because it wanted Australian industry to make the 12 new submarines. The coalition had left its options open.
Mr Cowan said nuclear boats offered far greater range and endurance, a higher top speed, more weapons and better sensors. As a result, a fleet of eight could do the job the government envisaged for 12 conventional craft.
The US Virginia class fast-attack submarine was in production and in US Navy service, giving Australia the benefit of operating the same equipment as the US.
"The nuclear-powered Virginia class is an altogether better submarine than any diesel-powered Collins Class replacement might be," he said.
The government is considering options for a Collins replacement. An evolution of the Collins design, to give greater range and endurance, had been billed as most likely, with various cost estimates going as high as $40 billion.
Mr Cowan said Virginias cost around $2.5 billion each. However, he favoured a lease deal, which covered acquisition, logistical support, upgrades and crew training.
At the end of the lease, Australia could hand back the vessels and avoid any issues relating to disposal of spent nuclear material.
He said on that basis Australia could acquire eight Virginias for $19-21 billion, with an all-up project cost, including support and facilities, of $24-27 billion.
Mr Cowan dismissed the risk of a nuclear accident on the grounds that US nuclear boats had visited Australia on numerous occasions without incident and the US Navy had a perfect safety record for operation of its nuclear vessels.
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