Vital France back onside: Bishop

THE way the federal government “reneged” on the $90bn submarine deal with France’s Naval Group was “deeply regrettable’’ and the relationship should be repaired as a matter of urgency, former foreign minister Julie Bishop says.

Speaking at the Citi Australia & New Zealand Investment Conference, Ms Bishop said while the decision to acquire nuclear submarines was right, the way the French were handled was a “big mistake’’.

The French agree. France’s ambassador to Australia, Jean-pierre Thebault, said last week that the government lied to his face about the secret deal to abandon the contract with Naval Group and shift to a nuclear capability with the US and Britain.

Ms Bishop said repairing the relationship should be top of mind for Australia’s Foreign Minister.

“The way the Australian government reneged on the French submarine contract is deeply regrettable,’’ she said.

“(France is) a dominant stakeholder in our part of the world, in the Indian Ocean and particularly in the Pacific, so it’s imperative that the Australian government seek to rebuild that trust that’s clearly been lost.’’