House debates

Monday, 22 June 2015

Statements by Members

Defence Procurement

1:33 pm

Photo of Tony ZappiaTony Zappia (Makin, Australian Labor Party, Shadow Parliamentary Secretary for Manufacturing) Share this | | Hansard source

Last week the Abbott government's hand-picked audit commissioner, Tony Shepherd, argued that the replacement submarines should be built in Australia. Australian shipbuilder Andrew Bellamy, now based in the US and building naval warships for the US Navy, reportedly also believes that Australians have the capability to build their own naval vessels and backed Australia's efficiency and expertise.

In a clear sign of frustration with the Abbott government, global defence company BAE Systems last week pulled out of bidding for the Pacific patrol boats. The Abbott government has destroyed Australia's car industry and is doing the same with the naval shipbuilding sector with its confused messages and continued uncertainty.

Australian based defence companies and ship workers know they are capable of building the naval vessels that Australia needs. Hundreds of Australian businesses would directly contribute if the vessels were built in Australia, and those businesses want to get involved. With the Australian dollar now trading at around US77c, any offshore purchase has become far more costly than it was a year ago. More than ever before, the excuse that it is more expensive to build in Australia does not stand up to scrutiny.

In his budget address, Treasurer Hockey encouraged Australians to have a go. So why won't the Prime Minister support Australian businesses, support Australian workers and let them have a go?