Australia will review plans to double its fleet of submarines, with the new conservative government under pressure to rein in its budget even as Asian neighbors dramatically ramp up military spending.
Defense Minister David Johnston said he was unconvinced that Australia needed as many as 12 new conventional submarines currently foreseen by military planners. It comes as regional neighbors, led by China, build up their naval and air arsenals amid disputes over territorial waters, especially in North Asia.
At a cost of up to $32 billion, doubling the submarine fleet would be the country's largest single military purchase.
"It's a mystery to me [where that number of 12 came from]," said Mr. Johnston, who has called for a review of military-equipment spending as part of a yearlong strategic planning process launched by the conservatives, who swept to power in September elections on a promise of fiscal restraint.
"That is a technical issue that the current circumstances will dictate and I want [the] navy to tell me what they foresee is the way forward. It might be more than 12, it might be less. I'm not sure," he said in an interview.
Australia's former Labor government in 2009 released a defense planning paper that called for a dozen large, conventionally powered submarines to replace the country's existing six-boat fleet of Collins class submarines.
Although much larger than submarines operated by regional neighbors, the Collins class submarines have been plagued by technical problems. On Thursday, a fire erupted on the submarine HMAS Waller off the West Australian coast, Australia's Defense Department said. There were no casualties.
A new fleet of larger, more powerful and longer-range submarines would counter a growing undersea presence in Asia. Singapore, Indonesia, Vietnam and Malaysia are fielding new submarines to counter threats to some of the world's most important energy-trade routes, as well as to hedge against Chinese ambitions.
China in January sent a surface warship fleet—possibly backed by a submarine—into waters between Indonesia and Australia, demonstrating Beijing's naval reach. The move prompted some alarm in Canberra, which sent a maritime patrol aircraft to keep watch.
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