Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Payne. Will the minister inform the Senate why it is oh so necessary to replace the Royal Australian Navy's supply ships as quickly as possible?

Opposition Senators:

Opposition senators interjecting—

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

Order on my left! Senator Cameron! Senator Conroy! Order!

Honourable senators interjecting—

On my right as well. Senator Edwards, you have asked your question. On my left.

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

The reason that it is necessary to replace the RAN's supply vessels as quickly as possible is that those opposite did nothing. As you are aware, Australia has two supply ships, HMAS Success and HMAS Sirius. Both are rapidly approaching their end of life. Sirius is a converted commercial tanker and it has a number of operational compromises. It is relatively slow, and there are constraints on the amount of solid cargo it can transfer at sea.

Success will next month see its 30th year of service. Because of its age it requires regular, costly maintenance to even keep it in service. So frequent are the maintenance requirements for the two vessels, there are times where both Sirius and Success are undergoing repairs at the same time and Australia relies on the Royal New Zealand Navy's HMNZS Endeavour.

Senator Lines interjecting—

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

Senator Lines, you have asked the question.

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

This is what is known as a 'capability gap'. As these ships age it is likely the amount of time they spend out of action will increase. These problems have been known about for years, but Labor did not even begin the necessary planning in government to replace them. Because of the need to replace them as soon as possible to avoid what would be a critical capability gap, in June 2014 the coalition government began a limited tender with two overseas shipbuilders to choose a proven design. Navantia has been selected as the preferred tenderer and negotiations have commenced with them.

Unlike those opposite, the Turnbull government is committed to ensuring our Navy is not left with a critical capability gap. You get a critical capability gap if you do nothing, and that is what Labor delivered us.

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President—

Senator Back interjecting—

Senator Conroy interjecting—

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

Senator Back and Senator Conroy!

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister respond to claims last week that, when in government, it was 'confident' it could build supply vessels in Australia?

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

Thank you, Mr President. Those claims are myths, they are irresponsible, they are scaremongering and they are inaccurate. Any assertion that the supply ships contract will result in 3,000 or even 2,000 jobs is incorrect and inaccurate. Defence estimates that the jobs will be less than a fifth of that amount. No Australian shipyards currently have the capacity to build the replacement supply vessels, which are almost three times as large as the air warfare destroyers—three times as large.

Labor's own 2013 Future Submarine Industry Skills Plan states that Australian shipyards could not accommodate the build of the large supply vessels without significant infrastructure upgrades. Those upgrades actually had to have been completed by now to allow the replacement supply ships to be ready by 2021 and avoid a critical capability gap. Labor knew that. They said it in their 2013 white paper. (Time expired)

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given Labor's inaction, can the minister inform the Senate how the coalition will maximise Australian industry involvement in the supply vessel contract and future naval programs?

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

In relation to the supply ships we will, through negotiations with the preferred tenderer, secure in excess of over $100 million worth of Australian content. The government's IIP also includes a provision for other investment to bring these ships into service, like the infrastructure we require to port them and the training necessary for our Navy personnel to operate them. Each of these investments will offer Australian industry the opportunity to secure local defence contracts. Most of the sustainment work on the supply ships will also be done in Australia, providing millions of dollars in opportunities for local industry.

The Turnbull government has provided ongoing certainty for Australian industry, with our commitment to build the future frigates in Adelaide and to build the offshore patrol vessels in Australia. In fact, given that those opposite did absolutely nothing to place one single ship order with Australian shipbuilders in the entire tenure of their government, only this government can be trusted to deliver defence capability and to secure the naval shipbuilding industry.