Senate debates

Monday, 4 December 2006

Questions without Notice

Airborne Early Warning and Control Aircraft Project

2:58 pm

Photo of Steve HutchinsSteve Hutchins (NSW, Australian Labor Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Defence, Senator Ian Campbell. Can the minister confirm that the project to acquire six airborne early warning and control aircraft is two years late? Can the minister guarantee that taxpayers will not have to pay for a cost blow-out in this project on top of the $3½ billion that has already been budgeted? In light of the two-year delay, does the government intend to review its budget decision to spend $469 million on this project this financial year? Will the government also come good on Minister Nelson’s threat of 29 June to pursue damages from the contractor given that the project is now two years late? Aren’t taxpayers entitled to expect that there will be consequences for contractors who fail to meet contract requirements to deliver multibillion dollar projects on time and on budget?

Photo of Ian CampbellIan Campbell (WA, Liberal Party, Minister for the Environment and Heritage) Share this | | Hansard source

I am happy to get all of the details that Senator Hutchins has asked for. The government is very focused on making sure that Australian taxpayers get value for their money. What we see in defence under the Howard government is a substantial increase in defence spending, a substantial movement in defence spending towards the sharp end in making sure that we are combat ready, and historic levels of investment in world-leading technologies to ensure the defence of Australia. It is in stark contrast to the running down of Australia’s defence preparedness under Labor, the running down of investment in defence under Labor and the massive decrease in combat readiness under Labor. It is audacious of Labor to ask questions about major defence contracts when everyone always remembers Labor’s management of defence contracts. Senator Kemp regularly says three words about the biggest bungled defence contract in Australian history under Labor: the Collins class submarine.

Photo of Steve HutchinsSteve Hutchins (NSW, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Mr President, as you are aware, the minister did not answer my question. Is the minister aware of reports that Qantas will seek compensation from the manufacturer if its 20 new A380 aircraft are two years late? Why aren’t Australian taxpayers entitled to the same protection given that Defence’s six airborne early warning and control aircraft will also be two years late?

Photo of Ian CampbellIan Campbell (WA, Liberal Party, Minister for the Environment and Heritage) Share this | | Hansard source

I have said to Senator Hutchins that I will in fact give him details in relation to the question in terms of the costings and the detail of that program. But I reiterate the point that the coalition government under John Howard’s leadership is investing more in defence. It is also substantially making sure that the money that is spent on defence is for effective equipment and that it is also putting more money into the front end, with capabilities undreamt of under Labor. Labor ran down Australia’s defences, infrastructure and Defence Force personnel, and under the coalition we have built those defences to historic levels.

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

Mr President, I raise a point of order going to relevance, but also the fact that the government is unable to provide any answers in relation to serious defence questions, because the minister will not bring in a brief. I ask Senator Minchin to think about the performance. More and more answers are being refused on the basis that the minister does not know anything about it. The minister has been asked two very serious questions on defence and the government has no response. The point of order is on relevance. If the minister does not know anything and will not bring in his brief, then he ought to sit down and not rave on.

Photo of Paul CalvertPaul Calvert (President) Share this | | Hansard source

On the point of order, the minister did say that he would take the matter on notice and I am sure he will.

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

Mr President, I ask that further questions be placed on the Notice Paper.