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

I thank Senator Patrick for his question and some broad advance notice of the interest. We did discuss at estimates the Future Submarine program, in broad terms, and some commentary around that. I note that we are doubling the size of Australia's submarine fleet, and I do refute much of the commentary that has been made on this matter. When we explained it at Senate estimates we talked about the 2016 Integrated Investment Program, which the Prime Minister and I released in February of that year, which stated that the acquisition cost of the Future Submarine capability is estimated at greater than $50 billion out turned. As has been explained, the current estimate is $50 billion in constant dollars. Self-evidently, particularly given the strength of the Australian dollar, of the Australian economy, if you out-turn $50 billion in today's dollars it will be greater than $50 billion.

I also want to note that the acquisition costs for the Future Submarine include much more than the design and construction of the submarine itself. As well as the design and construction of a fleet of 12 submarines, doubling the size, it includes the cost of designing and integrating the combat system into the 12 submarines, the investment in science and technology that will be required, the delivery of logistics support that will be required, and the design and construction of the submarine yard and the other land based facilities that will be required to support it, which I note are at Osborne in South Australia, which one presumes Senator Patrick welcomes. The initial estimate of the costs as set out in the IIP I have explained to the chamber, and I'm of course happy to take Senator Patrick's further questions.