The Transfer of HMA Submarines Oxley and Otway to Great Britain
In 1923 the RAN began the process of acquiring new submarines to replace the J class boats that had been gifted by Britain after World War One. In 1924, having decided that Australia lacked the capability to build submarines domestically, tenders were called for the construction of two boats, and Vickers of Barrow-in-Furness was contracted. Oxley and Otway were delivered by the builders in September 1927, and the boats left for Australia in November.
The two submarines had been ordered as part of a proposed flotilla of six, however by 1930 it was clear that there was no prospect of the remaining boats being funded. As an incomplete unit, they were very expensive to retain in commission, required specialised personnel to operate and maintain, and owing to their small number, their value for war was considered slight and not commensurate with the cost of upkeep.
Due to the onset of the Great Depression, funding was not available to keep the submarines in commission, and they were placed in reserve. The RAN considered that after an extended period in reserve, they would not be able to be restored to a safe and mechanically efficient condition without an extensive refit. Furthermore, there would then be no trained crews available due to the lapse of time. The decision was therefore made to offer the vessels as a ‘gift’ to the British Government. This course of action was anticipated to save the Australian Government £23,000 to £52,000 per year, which could be reallocated to procuring a replacement for the cruiser Brisbane.
Britain accepted the offer because the two submarines would increase the effective strength of the fleet, and would result in no increase in costs. The intent upon receiving the two ex-Australian boats was to place two existing L class submarines in reserve, and sell the submarines K26 and M3 for scrap. The cost of bringing the vessels to the UK (£5,000 to send the crew out to Australia and £2,700 for fuel) would be offset initially by the sale of the submarines K26 and M3 (£5,800 and £5,000 respectively). K26 and M3 would, in any event, have had to be scrapped as excess tonnage before the end of 1936 under the 1930 London Naval Treaty, but ultimately the cost of bringing the boats back to Britain would be covered by the scrap value of the two ex-Australian boats. In terms of recurring costs, the cost of maintaining the two ex-RAN vessels in full commission would be more than counterbalanced by the savings in annual maintenance achieved on the discarded K26 and M3, and the two L class submarines to be placed in reserve.
The submarines transferred to the RN in 1931 and joined the Mediterranean Fleet where they served until 1935, before transferring to the Home Fleet. Oxley was lost in the first week of World War II when she was torpedoed in error and sunk by the British submarine Triton while patrolling off the Skagerrak. Otway survived the war, and was sold on 24 August 1945 for scrap.