Brendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Foreign Affairs (House)) Share this | Hansard source

I rise to ask the minister a series of questions in relation to the expenditure of this very important portfolio. Before I do, I acknowledge the letter he sent to me today in relation to RAAF Base Woomera and ADF training facilities, explaining exactly why those kinds of facilities would not suitable for quarantining. I appreciate the comprehensive response I received today. If required, I will reply. But certainly that response explains why there may not be options in relation to those two particular locations.

It's clear to see, when you look at the issues around Defence asset contracts and when you listen to the commentators—and, indeed, the government—about rising tensions in the region, this portfolio, which is always a critical one, is perhaps increasingly critical in line with insights by experts, by national security agencies and by others about the need for us to have a sufficient defence capability to defend this nation. The minister and the government have recently, I think it is fair to say, elevated the language. They have certainly focused upon some of the challenges. The federal opposition shares the concerns of the government in relation to ensuring that we have sufficient capability to defend our citizens and this nation—to defend our sovereignty. It's absolutely critical that we execute the contracts we enter into, with primes and others, in order to provide the defence assets required for ADF personnel, and for that reason I want to touch upon some of those.

I'm also mindful of the fact that, whilst the minister has been a minister for a long time and has been a member of the National Security Committee of cabinet, he has been in this portfolio for a relatively short time and is dealing with a whole series of challenges. I think it's important to note that there have been six defence ministers since 2013, and there are some very significant questions that need to be answered in relation to the largest defence asset contracts in our history.

With the first question I have I'll exhaust the five minutes, as I do understand this process and I won't get another go. I don't expect the minister to be able to answer all the questions today, and I would appreciate him taking those questions on notice if he needs to. Firstly, what does the future hold for the Future Submarines program? Can the minister confirm that, due to the very long delays in the French developed Future Submarines program, the Prime Minister is having what some have described as crisis talks with the French President as we speak? Last week in estimates the Defence secretary disclosed that the government was considering prudent contingencies—he also described it as plan B—for the Future Submarines program. So the question we have for the minister is: what are those prudent contingencies, those things contemplated by government to get this contract back on track? The reality is that at the moment there is an overspend, or a blowout, of up to $40 billion on this defence contract, the time line for which has now blown out by a decade. What does the minister say about those problems and what will the government do about them? Will the government fulfil the contract, curtail the contract or cancel the contract? It's really important that we understand exactly what is happening. Of course, if it is to proceed, will be minister give an undertaking that the contract will ensure a minimum of 60 per cent local industry content over the life of this contract, noting all of the comments made by previous ministers that that was going to happen?

The second question is in relation to the report in The Australian last week that there had been a decision by government to have a life-of-type extension for the six Collins class vessels. Has that been taken to cabinet? Is it a government decision? If so, when was it given the first pass and final pass approvals? What will be the case in relation to full-cycle docking of the Collins class vessels? When will that occur? When will the decision as to where full-cycle docking will take place be made? Of course, there are 700 nervous workers in South Australia not knowing their lot, and indeed Western Australia also anticipate that they may well be beneficiaries of a transfer of that process of full-cycle docking of the Collins class vessels.

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