House debates Questions without Notice

Defence Procurement

Thursday, 13 February 2020 House of Representatives

Richard Marles

Richard Marles Corio, Australian Labor Party, Shadow Minister for Defence

2:51 pm

My question is to the Minister for Defence Industry. What binding commitment to a percentage of local content did the government write into its contract for the future submarines?

Melissa Price

Melissa Price Durack, Liberal Party, Minister for Defence Industry

Thank you for the question. We all know in this place that the Morrison government is investing a massive $50 billion into our submarine program. The 12 submarines will be built—

Amanda Rishworth

Amanda Rishworth Kingston, Australian Labor Party, Shadow Minister for Early Childhood Education

Where are they going to be built?

Melissa Price

Melissa Price Durack, Liberal Party, Minister for Defence Industry

Good question. Thank you, I'll take that interjection: in Australia by Australians and using Australian steel. We are also investing $535 million at Osborne in South Australia to ensure that we can build the submarines right here in Australia. Sovereign control over the attack class submarines and also maximising—

Tony Smith

Tony Smith Speaker

I'll ask the minister to just pause for a second. I'm allowing her a preamble, which she's had now for 30 seconds. Again, this is a very specific question asking for a specific figure, but the minister needs to be relevant. As I said, she's quite entitled under the standing orders to take the question on notice.

Melissa Price

Melissa Price Durack, Liberal Party, Minister for Defence Industry

What we do know in terms of the contracts—sovereign control is, of course, critically important to Australia, as is maximising Australian industry involvement. We are currently in the design phase for these submarines, and I'm advised, to date, that there are over 130 Australian companies and organisations that are subcontracted. The actual proportion of Australian content on the submarines will be determined as the design of the submarines is completed. Australian small companies are vital to the construction of our submarines. And I'm committed—the Prime Minister's committed; we are all committed here—to building 12 submarines in this country using Australian industry content. We have faith in our Australian industry. We are backing Australian industry. We are building 12 submarines in our country, because we are going to create more shipbuilding jobs.

Opposition members interjecting

Tony Smith

Tony Smith Speaker

The member for Shortland will leave under 94(a), and if those sitting with him want to save time they might go too. It might just save a little bit of time. I'll give them the option.