Senate debates

Wednesday, 17 June 2015

Questions without Notice

Defence Procurement

2:57 pm

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

My question is to the Minister representing the Minister for Defence, Senator Brandis. I refer the minister to reports that BAE Systems will not tender for the government's $600 million Pacific Patrol Boat Program. Is the minister aware that BAE has said that this decision was taken because the government's time line for awarding of a contract would not see a decision until 2017 and would not see a build until 2018? Is the minister aware that hundreds of BAE workers will lose their jobs in the first quarter of 2016? Why has the government not worked with BAE to avoid this situation?

2:58 pm

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

The government is very disappointed that BAE has made a commercial decision directly as a result of six years of inaction by Senator Kim Carr and his colleagues. For six years, absolutely nothing was done by the Labor government for Australian military shipbuilding—nothing. As a result, lines of supply faltered. As a result, commercial decisions were delayed.

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

You have been in charge for two years.

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

And I hear Senator Stephen Conroy, comically the shadow minister for defence, braying that for two years this government has been in—

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

You have been in charge and ignored our plans. We had plans on the table.

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

Senator Conroy, the lead times for major infrastructure projects and major shipbuilding contracts are longer than two years. The fact is that, when the Labor Party was in office for six years, not one Australian warship was commenced at an Australian shipyard—not one.

When the Labor Party was in power for six years, not one thing was done to progress the Future Submarine program. In fact, the only ship acquisition for which the former Labor government was responsible was the purchase from the Royal Navy of a second-hand warship, the Choules. So do not come into this chamber—you, of all people, Senator Kim Carr, who was minister for industry at various times during that unlamented Labor government—and complain that a commercial decision has now been made by BAE as a result of being left high and dry for six years on your watch.

3:00 pm

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

Mr President, I ask a supplementary question. I remind the minister that you are in government and it is your timetable which is now leading to the closure of this shipyard. Is the minister aware that in the United Kingdom a similar situation has arisen in naval shipbuilding and the Conservative government there has awarded BAE patrol boat contracts to avoid the shutdown? Why can't that process be followed in Australia?

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

Well, Senator Carr, I will tell you what we are doing: we are reviving the Australian shipbuilding industry. We are reviving the Australian shipbuilding industry by completing the Air Warfare Destroyer project, a project begun by the Howard Liberal government, during your watch allowed to blow out in terms of delivery time and cost. We are committing to 12 new Australian submarines for the Royal Australian Navy, something that you did nothing to progress over six years. Your record, Senator Carr, was the delay of 119 defence projects, the cancellation of eight and the reduction of 45. That is what you did on your watch over six years. Is it any wonder that a defence contractor, starved by you for six years, has made this commercial decision now?

3:01 pm

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

Mr President, I ask a further supplementary question. Given the impractical time lines for the Pacific Patrol Boat Program, the offshoring of the supply ships, the sham Future Submarine process designed to deliver work to Japan, why is it that this government is so determined to kill off local shipbuilding, a decision that will see the loss of thousands of Australian jobs in shipyards in this country?

Honourable Senators:

Honourable senators interjecting

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

Order on both sides!

3:03 pm

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

The truth is, Senator Carr, that the Australian shipbuilding industry had a near-death experience on your watch. For six years, not a single project was commenced. The only acquisition, as I said before, was the acquisition of a second-hand warship from the Royal Navy.

Senator Kim Carr interjecting

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

Senator Carr, you have asked your question.

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

When the coalition came into office, we had to revive an industry that you had rendered moribund. We had to revive the Air Warfare Destroyer project, as we have done. We had to revive the Australian Future Submarine program, as we have done. We have saved the Australian shipbuilding industry from your neglect, your inattention, your inaction and your lack of interest. Mr President, I ask that further questions be placed on the Notice Paper.