Senate debates

Wednesday, 21 March 2007

Questions without Notice

Defence Procurement

2:53 pm

Photo of Nick MinchinNick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

I do have some regard for Senator Bishop and his diligence on these issues, but in this case he is completely wrong. I am happy to report that my answer to the Senate on 1 March was accurate. The government had not made a decision at that time. The government was, of course, deeply involved in what was then reaching the end point of a long consideration of our air defence capacity and our air superiority capability. Subsequent to the question that I received on 1 March, the government finalised that process of long consideration and decided that it would indeed move to purchase the 24 Super Hornet aircraft at a full cost, including maintenance and through-life support, of some $6 billion to ensure that Australia’s air defence capability is maintained in full. We see that as a primary responsibility for this government.

The government has been diligent in ensuring the adequate defence and national security of this country. We are proud of our record. No final decision has been made, but we are engaged in, as you know, the detailed consideration of the acquisition of the JSF, which, prima facie, we see as the ideal aircraft for Australia in that it has the multiskill capabilities required for our Air Force of air-to-air and strike capacity. To ensure that Australia maintains adequate air capability through the transition from our F111s and existing F18s, it has been decided, as I said, after a long period of consideration of the options, that we will acquire the Super Hornet aircraft. So I can assure Senator Bishop that the decision was made in a very considered fashion, following proper process.

The most important thing, of course, is that as a result of the superior management of the budget by this government—restoring the fortunes of the Australian government’s fiscal position—the government is glad to be in a position where it is able to make an investment of this kind to ensure our air capability. If we were still faced with a situation of massive debt and annual budget deficits, such a purchase would have been a much more difficult exercise to embark upon. But, given the sound finances of this country under our superior management, it is possible for us to make this important investment in this aircraft, which Defence recommended as being the aircraft that is appropriate to ensure that our air capability is maintained through the transition from the F111 and F18 to the JSF.

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