Senate debates

Wednesday, 16 August 2017

Questions without Notice

Defence Procurement

2:28 pm

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

I thank Senator Xenophon for his question. Given that the future frigate program is currently the subject of an active tender process, the government and I will not comment on matters that might affect that process. And, on that matter, I do observe that it is at best most unfortunate that sensitive tender information has been released today through the media and, as I understand it, on Senator Xenophon's website. It does not help during an active tender process to do that. It undermines it and places the tender at risk of being delayed or worse. What I can confirm to Senator Xenophon is that what the government has set up is a process that will establish an Australian sovereign continuous naval shipbuilding capability, a capability that will provide what our Navy needs to keep our nation safe and secure, a capability that will secure thousands of jobs for decades to come, many of them—if not primarily the majority of them—in the state of South Australia, which Senator Xenophon represents, but also across the nation through supply chains and through supporting industry.

Our priority remains the acquisition of regionally superior, anti-submarine-warfare-optimised future frigates, along with the capability for sovereignty over their operation and sustainment. Intrinsic to that is the government's objective to maximise Australian industry involvement in the program without compromising on the capability, cost or schedule for the future frigates. This was a principal consideration in the decision to build in Adelaide, South Australia, noting that nationwide industrial involvement will be essential to the successful delivery of this major program. Everything the government has done since we made the decision to build the future frigates in Adelaide has been about creating a sovereign industrial base to deliver us the capability we need, along with the thousands of jobs that go with it. (Time expired)

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