House debates

Monday, 19 October 2015

Private Members' Business

Australian Defence Force

12:19 pm

Photo of Natasha GriggsNatasha Griggs (Solomon, Country Liberal Party) Share this | | Hansard source

I move:

That this House:

(1)recognises that:

(a)the Government is investing in significant new capabilities for the Australian Defence Force (ADF);

(b)these capabilities include but are not limited to the acquisition of Boeing P-8A Poseidon aircraft, Northrop Grumman MQ-4C Triton unmanned aircraft, 58 more Lockheed Martin F-35 Lightning II joint strike fighters and two new Boeing C-17A Globemaster III transport aircraft; and

(c)the former Government’s cuts to Defence funding led to 119 projects being delayed, 43 degraded and 8 cancelled; and

(2)notes the importance of providing our ADF personnel the equipment and capabilities they need to perform their roles.

As I have said many times in this place, the men and women of the Australian Defence Force make incredible sacrifices in the interests of our country. Members of the Royal Australian Navy, the Royal Australian Army and the Royal Australian Air Force willingly take on risks and burdens that no other employee in any other workforce sector would ever have to deal with—frequent relocations, long periods away from home, physically gruelling work and of course the risks that come with combat operations. Because they give so much for Australia, because they sign up knowing they may be called upon to put their lives on the line, we owe them a duty.

A big part of that duty is making sure they have the tools and equipment they need to do the job. In the last term of government, the Labor Party spectacularly failed in this area, treating Defence as a piggy bank that they could break open again and again to cover up their general economic mismanagement. They cut $16 billion from the portfolio, sending Defence spending to its lowest level since 1938. As a direct consequence of that, 119 Defence projects were delayed, 43 were reduced and eight were cancelled completely. I am pleased to note that, since the coalition government came to office in 2013, the men and women of the Defence Force are once again getting the equipment they need to do their jobs. Over the 2015-16 period, $7.2 billion is being invested in Defence. This is great news for our Defence Force.

The coalition government is committed to a continuous shipbuilding program and the building of future frigates in Australia. This is in contrast to the Labor Party, who sat on their hands and did nothing for four years after a new submarine was listed in the 2009 Defence white paper. The coalition government has brought forward the Future Frigate program by three years and the offshore patrol vessels by two years. These two measures alone will sustain around a thousand jobs in the short term and guarantee around 2,500 shipbuilding jobs over the longer term. Not only is this good news for our Navy, providing them with the state-of-the-art vessels they need when they need them, this is good for our economy. By committing to a continuous build process, we have provided investment surety to investors and workers in our national shipbuilding industry. It is worth noting that the last time a Labor government commissioned a major naval vessel in an Australian shipyard, the Berlin Wall was still standing. This is proof that only under a coalition government do our ADF capabilities prosper.

Australian defence capabilities are being upgraded by this government. The coalition government announced earlier this year the acquisition of an additional two Boeing C-17A Globemaster aircraft, taking the total size of that fleet from six to eight. This is important because the C-17s are known for their assistance not only in Operation Queensland Flood Assist but in Operation Christchurch Assist and in Operation Bring Them Home—just to name a few. Other capabilities that the coalition government has invested in include two additional KC-30A Multi Role Tanker Transport aircraft, an additional eight joint strike fighter aircraft—which are due for delivery in 2018—and eight P-8A Poseidon maritime surveillance aircraft, as well as the acquisition of the highly capable Triton unmanned aerial vehicle. Most recently, Prime Minister Turnbull, along with Defence Minister Payne, announced a $1.3 billion agreement for 1,100 locally built Hawkei protected military vehicles to be manufactured in Bendigo—I note the member for Bendigo was here earlier. This long-term investment helps further secure the industry in Australia.

Just as our soldiers, sailors and airmen will look after this equipment, this government is looking after our Defence personnel. I am proud to stand here as a member of the coalition government which is delivering for our nation and for the men and women of our armed forces. Madam Deputy Speaker Prentice, I know that you are also a very strong advocate for our Defence Force and that your son is a member of the Defence Force. Thank you very much.

Photo of Jane PrenticeJane Prentice (Ryan, Liberal Party) Share this | | Hansard source

Is the motion seconded?

Photo of Luke SimpkinsLuke Simpkins (Cowan, Liberal Party) Share this | | Hansard source

I second the motion.

12:25 pm

Photo of Pat ConroyPat Conroy (Charlton, Australian Labor Party) Share this | | Hansard source

I rise to speak on this motion with regret and sadness that yet again the coalition are politicising Defence. They cannot help themselves. I do submit that the member for Solomon is a repeat offender in this affair of politicising Defence. We saw the now member for Canning trying to do that during his by-election, and that was most unfortunate. I do not question the commitment to the Australian Defence Force of anyone in the House of Representatives or in the Senate, but yet again we hear it. Unfortunately, it is based on a house of sand. The facts do not support their criticisms of Labor in power in terms of supporting ADF capabilities. In fact, despite all the trumpet-blowing on the other side, the coalition governments have been very poor managers of capability acquisitions. You only have to look at history, you only have to look at ANAO reports and you only have to look at DMO statistics to see it. That is the truth. Of the top 30 acquisition projects as listed in the DMO Major Projects Report, 87 per cent of the schedule slippage in those platforms occurred in projects approved by coalition governments—87 per cent, which is a cumulative 81 years of deferred capability for those platforms, occurring in projects approved by the coalition government.

The coalition have been awful procurement managers. Unfortunately, it is the ADF who suffer, because these capabilities have been deferred by 81 years. I could give you example after example, and, luckily, I have three minutes to do so. Of the 10 projects that are on the Projects of Concern list administered by the Department of Defence, all 10 were approved by coalition governments. They were approved by coalition governments in such a way that doomed them to delays in capability and doomed them to cost overruns. The poster child of this poor policymaking is the Seasprite. It was approved by the John Howard government in 1997 at a cost of $1.4 billion. Ultimately, it had to be scrapped because the program was based on trying to implant 2000 avionic systems on 1960s platforms and marry them with a missile system completely foreign to that platform. It is an acquisition that was doomed from the start, and it took a Labor government to realise that and say that $1.4 billion had been spent and enough was enough.

The Wedgetail project is another example where the Howard government signed up to a project for which the specifications detailed—as the Department of Defence freely admit—broke the laws of physics. That project was delivered 6½ years late. The project was delivered, and the Wedgetail is a fine platform, but it is not the platform that was signed up for, and it was 6½ years late. The FFG upgrade is another example where the specifications signed off by the Howard government exceeded the laws of physics. It was only a Labor government—which got the contractors, DMO and Navy talking—that were able to resolve the problems, because ultimately it is Labor governments that are serious about Defence reform and serious about delivering those capabilities. I am glad that the previous speaker talked about the Hawkei project. It is a great project, and I am glad that the coalition government came on board, finally, on this project, but it was a Labor government and Minister Combet who stood up to entrenched interests that wanted the army to accept the US JLTV platform and not give the local option a serious go. Labor made sure that Thales at Bendigo had a serious go at bidding for it. They won, and that is great news. I stand by Labor's record on Defence reform, on reforming the DMO, and on instituting the projects of concern process. All of these things have fundamentally improved Defence acquisition and sustainment in this country.

In the time remaining, I just want to refute some claims made by the previous speaker. We did start work on the Future Submarine project. We spent over $200 million de-risking the project, investing in the early planning work necessary to make sure that the platform can be delivered. On the shipbuilding valley of death, the coalition government did nothing in two years. They have finally been dragged, kicking and screaming, to the table. We had a plan in 2013 that would have solved the problem. We awarded major AWD module contracts to BAE Systems in Williamstown and Forgacs in the Hunter Valley, which were delivering work courtesy of a Labor government. I do not diminish the commitment of the coalition members to the ADF; I just wish they would spend less time politicising this issue and more time supporting the troops.

12:30 pm

Photo of Jane PrenticeJane Prentice (Ryan, Liberal Party) Share this | | Hansard source

Madam Deputy Speaker Griggs, I thank you, as the member for Solomon, for putting this motion on the Notice Paper and, importantly, for your ongoing advocacy and support for the men and women of our Australian Defence Force, who are tasked with protecting Australia's interests here and abroad. They perform a difficult and challenging role. In doing so, they uphold the traditions of courage, professionalism and mateship that have characterised the men and women of our defence forces for more than a hundred years.

However, in order to continue to provide effective defence of our nation, our ADF personnel need to be equipped and resourced to deal with contemporary threats. Those threats are continually evolving. In this year, the centenary of the Anzac landing at Gallipoli, we reflect not only on the sacrifice of those men and women 100 years ago but also on how different our defence forces look today. When the world changes, the ADF needs to change with it. Investment in new capabilities is needed. This requires foresight and planning, but, importantly, it also requires appropriate resourcing by government. It is on this particular point that the former government was found wanting.

As the motion notes—and as you point out, Member for Solomon—the former government's cut to defence funding led to 119 projects being delayed, 43 degraded and eight cancelled. In a time of evolving global threats, Labor cut $16 billion from defence, with defence spending as a percentage of GDP falling to its lowest level since 1938. In 2012-13 alone, Labor cut the defence budget by 10.5 per cent. Cuts of this magnitude have profound, long-lasting effects. Due to long lead times in defence project development and procurement, year-to-year funding uncertainty can have severe effects on the wider defence industry. Under Labor, the Australian defence industry were forced to cut more than 10 per cent of their workforce. Much of this was due to budget cuts, deferrals and the lack of opportunity for Australian suppliers.

Defence spending requires patience and a steady hand. Sadly, Labor delivered neither. The new Minister for Defence has inherited some big challenges, and I have every confidence that she can rise to the challenge. As a government, we are taking action to right the resourcing and procurement wrongs of the former government. This year, we are investing $7.2 billion in defence equipment, double the amount Labor spent in 2012-13.

Part of this spending will fund the acquisition of an additional two C17 Globemaster transport aircraft, and I am pleased to note that, by the end of this year, these aircraft will join 36 Squadron's existing fleet of six C7 Globemasters, based at RAAF Base Amberley, in Brisbane. Recently I had the chance to inspect the new base at RAAF Base Amberley on committee business, and I was very impressed by the new facilities there. C17 Globemasters are versatile aircraft and have provided valuable support for our military operations in Afghanistan and Iraq as well as humanitarian missions closer to home.

In a boost to Army capability earlier this year, an open request for tender was released for phase 2 of the Defence project known as LAND 400. This project will not just replace and upgrade Australia's fleet of armoured fighting vehicles but also introduce new levels of protection, firepower and mobility for our soldiers. Once procurement is complete, our military will have a fleet of vehicles that is more modern, better equipped and more flexible in responding to the challenges of modern conflicts.

Earlier this month we saw further investment in ADF capability with the announcement of a $1.3 billion agreement to procure Hawkei protected vehicles. Over 1,100 vehicles and 1,000 trailers will be purchased under the agreement. This decision will directly benefit the men and women at Gallipoli Barracks, in my electorate of Ryan. The Hawkei offer increased protection from the improvised explosive devices that are such a ubiquitous and devastating part of modern warfare. Despite their improved shielding, however, they are light enough to be transported by ADF helicopters. In a boost for Australian manufacturing, the vehicles will be built in Bendigo.

In the words of the Prime Minister: the government has no higher responsibility than the protection of the nation—and it is a responsibility that we take very seriously. I pay tribute to the men and women of the Australian Defence Force and, in particular, to the more than 5,000 living and working in Ryan. They put their lives on the line to keep us safe. In response, we have an obligation to provide them with the resources to do their job. The investments this government is making will ensure they have the equipment and capabilities they need to do just that. I commend the motion to the House.

12:35 pm

Photo of Gai BrodtmannGai Brodtmann (Canberra, Australian Labor Party, Shadow Parliamentary Secretary for Defence) Share this | | Hansard source

I rise today to speak about Australia's defence force and what a world-class defence force it is. I too pay tribute to their professionalism, their dedication and their commitment and say thank you. I note that members opposite are speaking about defence equipment and its role in supporting our Australian Defence Force. I acknowledge that high-quality hardware capability is essential, but what this private member's motion fails to recognise is that the ADF's biggest asset is not its Joint Strike Fighters or its Globemasters. The ADF's single biggest asset is its people—the men and women of the Defence Force. It is their courage, their dedication and their bravery that makes our Defence Force what it is today.

There are currently more than 2,000 ADF men and women deployed overseas. We have personnel deployed to the Middle East, the Sudan, Egypt, Israel, Lebanon, Afghanistan and the southern Indian Ocean. These men and women often spend months, sometimes years, away from their families and their loved ones. Often they are risking their lives to protect us and our national interests. We owe them so much. One of the most fundamental ways that a government can acknowledge and thank our ADF members is to ensure that they and their families are treated with respect and provided with decent pay and conditions. That is particularly the case, I believe, when Australia has personnel deployed overseas. That is why I was so outraged, that is why Labor was so outraged, when this government—those opposite—tried to cut the pay and conditions of ADF personnel last year. It was not just me or the Labor Party who was outraged; it was also the crossbenchers, it was defence associations and it was community members. Everyone was outraged.

Thankfully for ADF personnel, the government, after much pressure from this side of the House and from those community and defence organisations, reversed its unfair decision to cut their wages and conditions. However, we still have the issue of paid parental leave. Those opposite are looking at cutting paid parental leave for ADF men and women. So, in the tradition of what those opposite did with the pay and conditions of ADF personnel, I implore them to reverse their decision, to axe their decision, on paid parental leave. These people are not double-dippers, as has been suggested by some ministers in the government. These people are hardworking ADF men and women, serving our nation. This is a condition they have fought hard and long for, and I urge those opposite to reverse the decision, as they did, at Labor's behest, when they reversed the decision on pay and conditions.

I now go to the member's motion on the importance of providing our ADF personnel with the equipment and capabilities they need to perform their roles. This is vitally important. So let us look at some kit. Let us talk about some capability. For starters, let us look at Australia's future submarine fleet. While those opposite stand here praising the government for its acquisitions, how about we look at the largest defence procurement program in Australia's history—the Future Submarine Program. Before the last election, Liberal and Labor both promised that the submarines would be built in Australia. Yet, now we are seeing the Liberal government walk away from its commitment to build 12 submarines here in Australia, and that is despite the fact that defence experts have come out in support of an Australian build—experts like Dr John White, who earlier this year said:

… if we truly analyse all aspects of the project we will have a lower cost to the government from an all-build in Australia …

Under this government, more than 1,000 workers have lost their jobs at shipyards around the country, and thousands more jobs remain at risk. Those opposite must act to support workers and ensure that these skills and capabilities are not lost forever. It is vital that we have these skills in this country to sustain this capability. It is in our national interest. It is a national security issue. Even the former defence minister has criticised this government's track record to date saying:

… defence is meant to be a ‘natural strength’ for a coalition government. During this government, that has not always been the case.

I urge the government to stand up for Australia's defence industry, to back Australia's defence industry and to commit to building our 12 future submarines here in Australia.

I also want to take this very brief opportunity to commend the government on its decision to buy 1,100 Hawkei vehicles and 1,000 trailers made by Thales in Bendigo, and I commend the member for Bendigo for the great work she has done on that front.

I refute the part of this motion that aims to trash Labor's track record; instead, I call on the government to back Australia's defence industry and build our submarines here. (Time expired)

12:40 pm

Photo of Ann SudmalisAnn Sudmalis (Gilmore, Liberal Party) Share this | | Hansard source

Everyone knows that the world we live in has increasingly become an area of concern. Australia needs to have a continuing program of investment in our defence resources. This is of significance in terms of both personnel and equipment. Over time, some governments have chosen to see the defence budget and forward estimates as a revenue piggy bank and have cut allocations to shore up growing debt levels, removing $16 billion from the defence budget. This, however, is not the action of a responsible government. The former Labor government's cuts to defence led to 119 projects being delayed, 43 downgraded and eight cancelled. The wheels, the wings and the propellers of our defence force—that is, strategic equipment—can be up to 10 years in the planning and execution phases. It really is an ineffective government that chooses to ditch essential strategic planning for our defence capability. Whilst personnel in defence are always extremely reluctant to put their opinions forward in terms of policy advice, unless in a formal setting, many less formal conversations have indicated a level of frustration that could and should be avoided by a strong level of bipartisanship. After all, defence should be separate from politics and not used as a policy football or a debt reduction piggy bank.

The coalition government's investment of $7.2 million for defence equipment, with some specific projects worthy of note, needs to be outlined to reflect just how seriously the coalition views the need to build and maintain our capability. On 5 August 2015, the Prime Minister and the Minister for Defence announced that the Australian government will purchase 1,100 locally built Hawkei protected vehicles and over 1,000 trailers to strengthen that force. Under the $1.3 billion agreement, the vehicles will be manufactured at Thales, Australia's production line in Bendigo, creating 170 jobs there and another 60 also in Victoria. The Hawkei will improve the protection of our soldiers, and the relatively lightweight construction will enable them to operate in high-risk areas. It is the only protected mobility vehicle in the Australian Defence Force that can be transported by ADF helicopters. The coalition government continues to invest in the skills and knowledge base of the defence industry. This long-term investment has helped secure this important industry's future here in Australia

In April, this year, the coalition announced the decision to acquire two additional Boeing C17A Globemaster III aircraft, taking the total size of the fleet to eight. The aircraft purchase and the associated equipment and facilities represent a $1 billion investment in Australia's security and our ability to respond to events rapidly. Some $300 million dollars of this investment will be spent on new and upgraded facilities at their home base at RAAF Base Amberley in Queensland, generating significant opportunities for local industry. The C17 is a heavy transport aircraft that allows the RAAF to rapidly deploy troops, supplies, combat vehicles, heavy equipment and helicopters to anywhere in the world. They have a maximum carrying capacity of 77 tonnes, or three times as much as the C130 Hercules.

The aircraft can carry an M1 Abrams main battle tank or four Bushmaster vehicles or three Black Hawk helicopters operating medical evacuation capacity or deliver a significant amount of humanitarian aid. C17s were the backbone of the air link for Operation Slipper in Afghanistan, delivering supplies and equipment to our troops. The versatile aircraft is capable of operating to and from relatively short dirt airstrips. Together with the Super Hornet and the Growler electronic warfare aircraft, the Joint Strike Fighter will ensure Australia maintains a regional air combat edge. It will also provide a major boost to the Australian Defence Force intelligence, surveillance and reconnaissance capabilities. These first two aircraft were delivered late in 2014. Australia's first Joint Strike Fighter pilot completed training in April this year and has now been joined by Australia's second pilot, who commenced F35 flying training in June.

The next eight joint strike fighters are due for delivery in Australia in 2018. By 2020 Australia's current fleet of 71 classic Hornets will be over 35 years old, and the coalition government will not allow a capability gap to occur. Around $1.5 billion in new facilities and infrastructure will be constructed at the RAAF base at Williamtown in New South Wales and the RAAF base at Tindal in the Northern Territory. Australian Defence Industries has been awarded over US$480 million as at April this year and stands to win in excess of another $1.5 billion for joint strike fighter-related production and support work over the life of the program, creating long-term advanced manufacturing and engineering jobs. We need to ensure this continuity of defence expenditure from both sides of government and be truly bipartisan. The coalition has a vision for long-term defence capability and the political will to allocate and confirm investment to give confidence to our essential personnel to do their best.

12:45 pm

Photo of Lisa ChestersLisa Chesters (Bendigo, Australian Labor Party) Share this | | Hansard source

It is great to hear members of the government acknowledging the top work that goes on in Bendigo at the Thales manufacturing facility. It is great to hear them recognise the hard work of so many men and women at the Bendigo Thales facility, where we have proudly built the Bushmaster and now have the opportunity to build the Hawkei defence vehicle. Everybody acknowledges what this vehicle will be able to do. I agree with one part of this motion—where it notes the importance of providing ADF personnel with the equipment and the capability they need to perform their roles. We need to acknowledge from the beginning the importance of ensuring that our ADF personnel have the equipment and the capability to do one of the toughest jobs you can be asked to do in this country.

I do want to set the record straight on a few things, particularly when it comes to Hawkei. This contract to develop the prototype was first awarded under the former Labor government. Defence manufacturing is not simply 'Let's go to a shop and buy a product off-the-shelf.' In defence procurement, first and foremost the Defence Materiel Organisation makes a decision about what product or vehicle they wish to purchase. The opportunity to develop the Hawkei vehicle prototype and do the testing was first awarded to the Bendigo Thales facility by the former Labor government. The prototype was developed, tested and handed over to Jason Clare, who was the Minister for Defence Materiel under the former Labor government. After the change of government, it took two years before this government would sign the Hawkei contract which would give the men and women of Bendigo the opportunity to continue to build the vehicle. Unfortunately this does not create 170 new jobs but it does secure the existing jobs that we have in Bendigo—high-skilled, high-paid defence manufacturing jobs. Now that we have this $1.3 billion contract we are hoping that we will have some new apprentices in the factory, because that is what we have missed out on the last two years. The delay in this government putting a signature to paper has meant we have had no new apprentices at the Bendigo Thales facility for the last two years. This is a shame. Many people in Bendigo did their apprenticeship at the old ordnance factory, today known as Bendigo Thales. We are hoping that, with this contract finally being locked in, apprenticeships will start up again at the facility.

This government has also failed with uniforms. At the Australian Defence Apparel facility in Bendigo we also manufacture the uniforms that the men and women of our ADF wear overseas. The former Labor government awarded contracts solely to Australian manufacturers. When the contract came up for the utility belt—again, something that has been designed and tested at the Bendigo ADA facility—rather than having it manufactured here in this country this government signed a contract so ADA could import the belt. They were to have it manufactured overseas in Vietnam and import it. Even although we had the capability in Bendigo and Coburg, this government said they would go for option three—100 per cent import with manufacture overseas. That is a disgrace when we have the capability to manufacture here in this country.

That is not the only case where this government has dropped the ball when it comes to defence procurement and locking in good quality manufacturing jobs in this country. We have to mention the debacle around submarines. Both parties committed before the last election to manufacture subs in Australia. Yet one party is continuing to drag its feet. Labor is committed to what we committed to at the last election—to have these 12 subs built in this country. Delays by this government are costing jobs. We have heard that a thousand workers have lost their jobs in shipbuilding yards. Every day this government delays on defence manufacturing, we see more jobs lost.

I will finish where I began. I am relieved that this government finally signed the Hawkei contract—at five minutes to midnight—before we saw job losses in Bendigo. It is great news for us, but other towns should have the same opportunity for defence manufacturing and procurement.

Debate adjourned.