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AAP
AAP
Politics
Sam McKeith

Govt to pay $830m over scrapped subs deal

Anthony Albanese hopes a new submarine compensation deal will mend relations with France. (AAP)

Australia will pay French company Naval Group around $830 million to settle a scrapped defence contract that would have seen it build submarines in South Australia, Prime Minister Anthony Albanese says.

Australia's current fleet of Collins submarines were going to be replaced by a conventional fleet constructed by Naval Group but that deal was abandoned by the Morrison government, which decided to instead pursue nuclear-powered submarines under the AUKUS partnership.

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