Chris Evans (WA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is directed to Senator Minchin in his capacity as representing the Prime Minister. I refer the minister to today’s announcement by the government to purchase a further 34 MRH 90 multirole helicopters. Is the minister aware of European concerns that this helicopter is already significantly delayed? Can the minister confirm this supplier, Eurocopter, has also supplied us with the Aussie Tiger, which the Audit Office recently found to be seriously underpowered, failing specifications and unable to fly over water? Can the minister also confirm that, on top of this, both the current Sea King and Seasprite helicopters are grounded, with the Navy Seasprite helicopter also unable to fly over water? What confidence can the Australian people have, given the government’s appalling form on helicopter acquisition, that these helicopters will be delivered on time and within budget?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

That question might have been better directed to the Minister representing the Minister for Defence, but I happily intend to answer Senator Evans’s question. I note that Senator Evans happens to be a senator for Western Australia; I think he should spend his time trying to reverse the idiotic policy of the Labor Party on AWAs for the sake of his own state. In relation to helicopters, Senator Evans and I spent many hours in Senate estimates this year arguing the toss on helicopters. We talked at length on the audit report on Tigers. I pointed out, as did the representatives of Finance, that we thought the Labor Party was unduly exaggerating the nature of that report, that it was grossly unfair on the DMO and that there were particular reasons for the difficulties with that project.

One of the reasons was that it was quite deliberately designed to ensure that we were not the lead purchaser of that particular product. Regrettably, the French, who were meant to be the lead purchaser of that product, fell way behind their schedule. Indeed, it is a great credit to the DMO and Defence that we kept to schedule on the acquisition of that product and ended up inadvertently becoming the lead purchaser, which had some complications in terms of the detail of that contract. All of the Auditor-General’s recommendations in relation to that report have been accepted by Defence and are being, and will be, implemented to ensure that that project is a good project for Australia. It is the right product and they will be delivered and operational.

I am very pleased that the government has now announced its decision in relation to the MRH90 troop lift. That is a good decision, one that was thought about very seriously and very carefully. Of course, the government can never win. We have been criticised for being too American oriented in our Defence purchases. Some are critical of us for only purchasing American products. In this case we bought because on balance it was clear, on the evidence available to the NSC, that the best product for Australia was the Eurocopter. We have made that decision. It is a good decision. The Prime Minister and the defence minister have now made that formal announcement. We are very satisfied it is the right product for Australia and will be delivered on budget and on time.

Chris Evans (WA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I note the minister said that we argued the toss. I think in fact I agreed with his proposition that the only place we could sell the Seasprite was to a landlocked country, given that it could not fly over water. More importantly, can the minister explain why the announcement today did not include a delivery timetable for the 34 additional helicopters? Is the government softening us up for more delay, given that the first 12 MRH helicopters—announced, I might add, as a major counterterrorism initiative by the Prime Minister in 2004—are already 12 months late?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

I did not read the detail of the announcement. I will take Senator Evans’s word that there was not a specific delivery date and I will get him an answer to that question.