House debates

Tuesday, 13 June 2017

Bills

Appropriation Bill (No. 1) 2017-2018; Consideration in Detail

6:30 pm

Photo of Richard MarlesRichard Marles (Corio, Australian Labor Party, Shadow Minister for Immigration and Border Protection) Share this | Hansard source

The Future Submarine project is, by some measurements, the single biggest procurement in Australian government history. It is an incredibly important project in terms of the strategic capability of the Royal Australian Navy, of our Defence Force and, as a result, of our country. It is a huge project in terms of the construction that it entails and the development of a sovereign capability in Australia in terms of being able to sustain and maintain submarines in the future based on the experience that will be gained from building the submarine in the first place is enormously strategically important for our sovereign capability.

Labor have always been a supporter of the Future Submarines. Indeed, in large measure it was initiated under the former Labor government. Again, we welcome the government's, albeit late, conversion to now supporting the purchase of 12 submarines and, ultimately, having those submarines constructed in Australia; indeed in the minister's home state of South Australia. It was not always thus. For quite a while there seemed to be an attempt to make the submarine project something which was subservient to other government interests—namely, a free trade agreement with Japan. And of course we had the very unfortunate and famous remarks of former defence minister Johnston, who characterised ASC's ability in this regard as being unable to build a canoe. I accept that they are the comments of one individual and they are probably comments which, at the end of the day, cost him his job. But it does leave one a little uneasy about the exact commitment in the hearts of those on the government side about the need for the construction of this to occur in Australia and for the genuine sovereign capability to be acquired by Australia in respect of the Future Submarines so that we can have this capacity and maintain and sustain these boats into the future.

As the timetable is currently set out for the Future Submarines, we will not see the first submarine in the water until the early 2030s. I think it is estimated that the last submarine will not enter the water until 2050. That, in turn, has implications for maintenance of the Collins class submarines, so that a capability can be maintained between now and when the Future Submarines takeover the role. Because we are talking about maintaining the Collins class submarines through until the middle of this century, there is obviously a significant cost associated with that. The cost of the project is therefore significant and the actual capability we get from the project will not come to pass until the 2030s. On top of that, and this is simply making the observation, this is a unique capability which is being purchased; it is not an off-the-shelf product. With any unique build there is an element of risk associated with it. There is nothing that can be done about that, but it is part of the landscape that we now find ourselves in. It is a capability that will not come on board until the 2030s; a solution which is ultimately expensive by virtue of the fact that the Collins need to be maintained through until the middle of the century; and a new capability which has in it an inherent amount of risk.

The question then for the Minister for Defence Industry is: has the government given any consideration to the pace at which this project can be sped up? Is there any consideration or plan in respect of that? Obviously, if the project could be sped up then the maintenance of Collins would be reduced and ultimately there would be a cost benefit there. Can the minister assure us that we will not experience any capability gap associated with the transition from the Collins to the new Future Submarine? That is obviously critical in terms of how important the strategic capability is that we are acquiring with this submarine. Can the minister assure us that all 12 submarines will be built in South Australia?

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