Senate debates

Thursday, 17 March 2016

Questions without Notice

Defence Procurement

2:57 pm

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

That was so embarrassing for Senator Carr, wasn't it? My question is to the Minister for Defence, Senator Payne. Would the minister be kind enough to update the Senate on the development of a naval shipbuilding plan and the certainty it will provide to the defence industry right across the nation?

Photo of Marise PayneMarise Payne (NSW, Liberal Party, Minister for Defence) Share this | | Hansard source

I was hoping Senator Bernardi had a question for Senator Ryan, but I will take it anyway. Mr President, I can indicate to the Senate that the Turnbull government will release a naval shipbuilding plan this year to complement and to support the commitments we have made in our 2016 Defence white paper. This will be the delivery of a long-term plan to ensure the retention of a sovereign Australian naval shipbuilding industry and the jobs that go with that.

It will require the cooperation of government, industry, educational institutions and skilled workers, and it will be a process of both reform and development. As Chris Burns from the Defence Teaming Centre said today—and I agree—a long-term naval shipbuilding plan allows industry to invest in innovation early, to evolve designs progressively, to ensure their best capabilities are available and, as a result, to become globally competitive and enter the export market.

The plan is important because it will help to ensure that we have the best capability for our Defence Force and that we maintain our sovereign manufacturing and technology capabilities. It will help to ensure and provide certainty for industry and the skills and innovation that come with that. It will help South Australia—Senator Bernardi's own state—to become a focus of naval shipbuilding in Australia as a result of the development of that plan.

I know that there are some members of the opposition who have been running around this week spreading all sorts of myths—and I will call them myths as a courtesy—about naval shipbuilding plans. So let me make our current commitments quite clear. The Turnbull government will construct Australia's fleet of nine future frigates in Adelaide. We will construct Australia's fleet of 12 offshore patrol vessels in Australia. We are undergoing a competitive evaluation process for future submarines. We are in a tender process for Pacific patrol boats, and our commitments to build our future naval service fleet in Australia are absolutely in stark contrast to those opposite. (Time expired)

2:59 pm

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Would the minister be kind enough to address some of the recent commentary regarding the replacement supply ship project?

Photo of Marise PayneMarise Payne (NSW, Liberal Party, Minister for Defence) Share this | | Hansard source

I thank Senator Bernardi. I think some of the commentary in recent days has particularly come from the Labor member for Wakefield, Mr Champion. I heard him claim that the former government was committed to building supply ships in Australia and that that was not an issue while they were government because 'everybody knew these supply ships were going to be built in Australia'.

Unfortunately for Mr Champion, these ministers did not: the then Prime Minister and the then defence industry and defence materiel ministers. They did not because they announced that they were going to seek options for local hybrid and overseas build or the lease of an existing vessel—no building and the lease of an existing vessel. So what Mr Champion said is quite simply not true, and rewriting history will not erase Labor's appalling record on this.

Senator Conroy interjecting

Those opposite cannot come in here and play hypocritical games because this is too important to our nation and it is too important to the workers that you purport to represent.

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Minister for Finance) Share this | | Hansard source

Mr President, on a point of order. I am just wondering whether it is appropriate for the shadow minister for defence to play candy crush while the Minister for Defence is providing a very important answer about our naval shipbuilding capability.

Senator Conroy interjecting

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order, Senator Conroy! There is no point of order, Senator Cormann.

3:00 pm

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a final supplementary question. Given the long lead times and infrastructure investments required for naval shipbuilding projects, will the minister please explain whether it is possible to build the supply ships in Adelaide at the same time as the air warfare destroyer?

3:01 pm

Photo of Marise PayneMarise Payne (NSW, Liberal Party, Minister for Defence) Share this | | Hansard source

The very short answer for Senator Bernardi is no. It is not possible now, but it was if the infrastructure at the Adelaide shipyard had been upgraded when Labor was told in 2007, 2010 and 2013 that that was what was required. Their own 2013 industry skills plan stated that it was not possible to be the supply ships here unless the infrastructure was upgraded. But they did not make that call when they were in government; they did nothing, and it was all too late. They were told in 2007, in 2010 and again in 2013.

The member for Wakefield said yesterday: 'We were never going to invest the money in ASC until the AWDs were finished.' That is very different from what others opposite have said. They are all over the place on this. If that is true, how was Labor ever going to be able to build the replacement supply ships in Adelaide given all three AWDs are still under construction under Labor today? Under their mystery plan, construction would not have begun until the mid-2020s. (Time expired)

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper, andmight I take this opportunity to wish all honourable senators a happy Easter.