Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Hansard source

I thank Senator Xenophon for his question and for some early indication that he would be pursuing this question. This is a very important question, because the objectives of the CEP that we put in place for the Future Submarine program were in particular to maximise Australian industry involvement. That is exactly what we intend to do as a government: we are going to maximise Australian industry involvement, engagement and capability throughout the entire Future Submarine program which, as you know, has been announced will be constructed in Australia—in fact, in Adelaide.

I am not going to stand here today—and I have had this discussion with our colleague Senator Conroy before—and put a percentage and, most particularly, put a floor on any particular level of Australian industry involvement because, frankly, it is my view, it is the government's view, that that would be a reckless thing to do during the Commonwealth's most important commercial negotiations ever. We just do not believe it is the right approach to this important negotiation. What we will do though is adopt a very ambitious, very positive approach in relation to the engagement of Australian industry and Australian content in order to maximise it.

Senator Xenophon, you have asked about directions to Defence in relation to this—let me be very clear: the entire National Security Committee of Cabinet, the Minister for Defence Industry and I have been absolutely explicit in our directions to Defence that their job in relation to these commercial negotiations is to maximise Australian industry involvement while obtaining the submarine capability that Australia needs, the regionally superior submarine capability that Australia needs.

These are not just words or promises; these have actually been backed up by this government. We have backed them up with the development of the Centre for Defence Industry Capability. We have backed them up with the other initiatives set out in our Defence industry policy statement, as you know, Senator Xenophon. (Time expired)