My question is to the Minister for Defence, Senator Johnston. I refer to the minister's personal denigration of the workers at ASC in question time yesterday when he stated 'I wouldn't trust them to build a canoe'. I also refer to the Prime Minister's repudiation of the Defence Minister when he said last night that the ASC 'plays a vital role supporting the Royal Australian Navy and our key naval capabilities'. Given that the Prime Minister's statement shows that he no longer has confidence in the defence minister, how can the minister continue in his role?

This morning I took my medicine for an hour. I did say something that I regret. Gee, I do not think I am first cab off the rank—and I am looking straight at Senator Conroy. Let's talk about Defence. It was me who, back in 2009 during Defence estimates, worked out that we were paying around about a billion dollars a year and we did not have any submarines in the water. I then, for the first time ever, got the executive officer of ASC to come to Senate estimates and I asked him: why, with a gross turnover of $750 million, was there only a dividend of $2 million? And what is the problem with the sustainment of submarines? He set out a number of problems.

The comparisons across the world were quite concerning. It was my constant reference in Defence estimates and in the public accounts committee that brought this matter forward. Indeed, may I say, the owner of ASC, the then finance minister—who happens to be sitting just over there—had to be told what the letters ASC actually stood for. And of course, as a result of my constant badgering we had the Coles report. The Coles report is very serious, sober reading. (Time expired)

Mr President, I rise to ask a supplementary question. I refer the minister to comments by the education minister, Mr Pyne that 'The Minister for Defence shouldn't have made that statement', and 'The Prime Minister has made it clear that he does not support that statement.' If the Defence minister has lost the confidence of his cabinet colleagues, how can he continue in his role?

Sadly, I know it is disappointing, I have said that I regret the comments and I should not have made them.

Apologise to Steven Marshall.

May I say, in accepting that interjection, Steven Marshall is a very fine man and should be the Premier of South Australia.

Opposition senators interjecting—

Order! Pause the clock.

Steven Marshall is a very fine man who should be the Premier of South Australia. The point about all of this is that this is a vital program run by a vital government agency, a government business enterprise, ASC, that for six years was just left to founder by the person sitting at the leader's table on the opposition. The program that we inherited is a very vital program. (Time expired)

Mr President, I rise to ask a final supplementary question. I refer the minister to comments by the person he described as a 'very fine man', Mr Marshall, who said that the comments by the minister were nothing short of deplorable and described his position as 'untenable'. If the Defence minister has lost the confidence of the Prime Minister—

Pause the clock. Senator Wong, wait until we have silence behind you.

Thank you, Mr President. If the Defence minister has lost the confidence of the Prime Minister, his cabinet colleagues and the South Australian Liberal leader, how can he continue in his role?

Government senators interjecting—

Order on my right.

One of the principle reasons for my contrition—and let me say, looking at the conduct over the other side over the last six years, there has never been one single piece of contrition—is that Steven Marshall said what he said because I simply admire him and call him a friend. As the man that I am, I accept his criticism.

He said your position was untenable.

Senator Wong.

However, I believe that the Prime Minister has full confidence in me. Indeed, I believe my cabinet colleagues understand because we are a very good team. We understand exactly the difficulties we are confronting in Defence. We are supportive and are willing to understand that what I said was in extreme frustration.