A few thoughts.
On Keating: When I was a young graduate studying economics in the late 1980s Treasurer Paul Keating really was a dominant figure in economic policy debate. He was very knowledgeable of economics, articulate and had a cutting wit. But he was never an expert on defence or foreign policy. He was always looking for ways to cut defence spending. The leading expert on defence among politicians of that era was Kim Beasley. Why would we accept Keatings' view ahead of Kim Beasley, who supports SSNs?
On nuclear power: While developing an SSN industry will generate skills in nuclear engineering, that does not mean there is a case for nuclear power in Australia. This is not Europe. Renewable power (wind and solar) in Australia is already cheaper than coal or gas. Nuclear energy is more expensive than coal or gas. I have no ideological objection to nuclear power. It can be made safe with good engineering. But it is always expensive.
The new UK nuclear power plant (Hinkley C) is over 2 years late and more than 50% over budget. It is costing £32 billion for 3.2 GW, about $17 billion Aus per GW. That is more costly than the entire Astute submarine program (all 7, including hull and reactors). By comparison, a 1.2 GW wind farm on the Fraser coast is being built now for $2.1 billion (1/8 the cost). A new 1GW coal plant might cost $5 billion (1/3 the cost). You would only build nuclear power if you had long periods in the winter with neither sun nor wind.
Nuclear power station costs could rise to £32bn as French group warns Chinese partner may not meet extra payments
www.ft.com
On UK sub infrastructure: all the Australian politicians I have heard quoted since the AUKUS announcement have referred to building all 8 RAN SSNs in ASC, Adelaide. The first of class (for the RN) will be built in Barrow, which has more expertise in trials and commissioning. I assume the same modular construction approach adopted in the Astute build will be used. All the reactor compartments, including Rolls Royce PWR3 reactors, will be made in BAE Barrow and shipped to Adelaide for assembly in each hull. I can understand Australia might need to contribute to Rolls Royce expanding its naval reactor construction capacity, since its capacity will need to effectively double, and the build hall in Barrow used to make the reactor modules. I assume as much as possible of the rest of the submarine will be built in ASC.