Senate debates

Tuesday, 24 March 2015

Questions without Notice

Defence Procurement

2:26 pm

Photo of Alex GallacherAlex Gallacher (SA, Australian Labor Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Defence, Senator Brandis. Is the CEO of the Australian Industry Group, Innes Willox, correct when he says,

'The next generation of submarines should be built in South Australia given that it is a principal hub of naval ship and submarine construction and support in this nation'?

2:27 pm

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Senator Gallacher, I know Mr Innes Willox; I have a lot of respect for Innes Willox. And I can assure you that, when the government makes its final decision on the next generation of the Australian submarine, Australian industry will be delighted because there is going to be one overriding criterion—Senator Gallacher might be interested to know—in the decision that ultimately we will make and that is what is in the best interests of Australia. And at the moment, as Senator Gallacher, I am sure, is aware, the government is undertaking a competitive evaluation process to select the most appropriate international partner for the construction of the next generation of the Australian submarine.

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

You've already voted to give it to Japan!

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Now, I hear Senator Stephen Conroy braying at me and pointing his finger at me. Senator Stephen Conroy of course represents the defence portfolio in this chamber. Senator Stephen Conroy has to explain why it was that for six years not a thing was done, not a finger was lifted by the former Labor government, to progress the construction and acquisition of the next generation of the Australian submarine. So after six years—

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Pause the clock!

Photo of Claire MooreClaire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | | Hansard source

Mr President, I rise on a point of order on direct relevance to the question, which is about whether the minister agrees with the comments made by Mr Innes Willox, not whether he knows him.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

I will remind the minister of the question and advise him that he has 22 seconds in which to answer.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

As I said to Senator Gallacher, I know Mr Willox and I have a high regard for Mr Willox and his opinions. Mr Willox will be delighted, because we will make a decision to repair the capability gap, left by the Labor Party, to acquire a next generation Australian submarine in the national interest.

2:29 pm

Photo of Alex GallacherAlex Gallacher (SA, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Is Mr Willox also correct when he states that Saab Sweden, a highly experienced submarine designer, should also have been included in the government's plans for the next generation of Australia's submarines?

2:30 pm

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Senator Gallacher, I regret that I cannot agree with Mr Willox's observations about Saab Sweden, and I can tell you why: Sweden has not constructed a submarine since 1997—almost 20 years ago—when the last of the Gotland class of submarines was delivered.

Photo of Mitch FifieldMitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | | Hansard source

What class?

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

The Gotland class, Senator Fifield. Those who advise the government assess that Sweden's ability to deliver a modern submarine, after the hiatus in its design and fill program, will be demonstrated once its next-generation submarine is delivered in 2022. There will have been 30 years between when Sweden last delivered a submarine and when it next delivers a submarine.

2:31 pm

Photo of Alex GallacherAlex Gallacher (SA, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. I refer to the former chief executive of Lockheed Martin Australia, Paul Johnson, who says:

Do we keep evolving this multi-billion dollar industry on-shore, or not?

The answer is, of course, unequivocally we can’t afford not to.

When will the Prime Minister reverse his captain's pick to let Japan build Australia's new submarine fleet and recommence building 12 submarines in South Australia?

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Through you, Mr President: Senator Gallacher, I do not know how many times I have to tell you before the message penetrates, but we have made no decision. The National Security Committee of Cabinet, the cabinet and the Prime Minister have made no final decision in relation to the acquisition of the next generation Australian submarine. What I can assure you, Senator Gallacher, is this—and I think you know this: Australia alone cannot build the next-generation submarine. We will need an international partner, and at the moment potential international partners—France, Germany, Japan—are being evaluated through a competitive evaluation process. It is on that basis, on an evidence-based informed decision, that a final decision will be made.