Senate debates Questions on Notice
Finance and Deregulation (Question No. 2630)
David Johnston WA, Liberal Party, Shadow Minister for Defence
asked the Minister for Finance and Deregulation, upon notice, on 26 November 2012:
With reference to the statement made by Mr Stephen Ludlam during the 2012-13 Budget Supplementary estimates hearing of the Finance and Public Administration Legislation Committee (Committee Hansard, 16 October 2012, proof p. 112), in relation to announced air warfare destroyer delays, that 'We have been able to provide a zero sum cost in that schedule extension': How has the cost of employment been offset, noting that the core of the air warfare destroyer would likely need to be retained for the period of the delay.
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
The answer to the honourable senator's question is as follows:
The costs of the workforce that is required to be retained for longer will be offset by a reduction in risk and liquidated damages provisions already included in the AWD Project profit.