French company Naval Group says its $830 million compensation deal for the scrapped future submarine program is 'fair and equitable', as debate continues over whether Australia has paid too much to make things right.
According to the leaked figures, Naval Group would receive a 90 million euro exit fee if the company completed the basic design, but the Defence Department then decided not to proceed further .
Shadow Defence Minister Andrew Hastie has questioned the Albanese government's high compensation settlement, claiming the Morrison government had been "aiming for a significantly lower figure" before it lost office.Independent Senator Rex Patrick, a former submariner, also believed the French company had secured a far-too-generous final compensation figure.
Former defence department official and leading military analyst Andrew Davies said the $830 million compensation figure seemed "reasonable enough at first look". "That's not unusual for a big contract and reflects the opportunity cost to the contractor of the resources tied up in the work."The other component is likely to be a combination of reimbursement for expenses incurred in the work to date and preparation for follow-on work."
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