Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Johnston. I refer the minister to the chief executive of the Australian Industry Group, who has said:

… there remains ample time for the federal government to hold a tender process to build Australia's future submarines.

Will the minister stop pretending that a capability gap is an excuse for his cosy deal with Japan and now commit to holding a competitive tender process?

David Johnston (WA, Liberal Party) Share this | Link to this | Hansard source

The Labor Party left that program in a dire state of neglect, having done nothing for six years. These are facts that the Labor Party refuses to acknowledge. If there had been anything done that constrained the Abbott government in going forward, you would expect—as I have said on so many occasions—a simple contract and an engagement with the South Australian government for training.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Two question times ago!

David Johnston (WA, Liberal Party) Share this | Link to this | Hansard source

Senator Conroy would need to understand that this is a very serious program that requires the government to actually roll up its sleeves and start to do something. They did six years of nothing, whilst telling the Australian public that everything is rosy in the garden, they had options and they were going forward for the program. But what we got there as a new government we found that nothing has been done with what is one of Australia's most important strategic deterrent capabilities. This is a disgrace. It is a disgrace which you seem to want to dress up as some sort of something that we are doing that is wrong. We are doing everything right to try and clean up your mess and get this particular program, which is such an important program and a vital strategic asset, back on track given the mess you left us.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer the Minister for Defence to the Australian Strategic Policy Institute, who said that a competitive tender process for our new submarine fleet would drive the price down and efficiency up. Will the minister finally accept the advice of expert after expert, rip up his draft press releases on the Japan deal and hold a competitive tender process?

David Johnston (WA, Liberal Party) Share this | Link to this | Hansard source

I love the learned Senator quoting the ASPI. On what you delivered in terms of the Defence budget—

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

How learned are you?

Stephen Parry (President) Share this | Link to this | Hansard source

Order, Senator Carr.

David Johnston (WA, Liberal Party) Share this | Link to this | Hansard source

whilst you had custody of it, they said it was an unsustainable mess that was moving to a crisis. That is what you delivered. I have said, and we will stick to this, that there will be the traditional Kinnaird first and second pass process for this important acquisition. That is the standard operating procedure for complex capability acquisition. That is what we will do, that is what everyone expects we will do and that is the way forward.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer the Minister for Defence again to AIG, who said that there are substantial risks associated with committing to acquire a submarine without knowing the full implications. Will the minister now abandon his sweetheart deal with Japan and commit to a competitive tender process? Does he think that bringing forward the future frigates will silence the outrage coming from Adelaide about his broken promise on submarines?

David Johnston (WA, Liberal Party) Share this | Link to this | Hansard source

This is just so much dross from a senator who sat on his hands for six years while the project went nowhere. Where was he? What was he doing? He was completely preoccupied with the game of politics in South Australia.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Where are you? You are nowhere.

Stephen Parry (President) Share this | Link to this | Hansard source

Order on my left.

David Johnston (WA, Liberal Party) Share this | Link to this | Hansard source

You want a tender. Senator Conroy last week asked for a limited tender with at least four bidders. What do you want? You do not even understand the process. It seems that some tenderers are more equal than other tenderers.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

For you that's true!

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order on my left.