Senate debates

Tuesday, 19 April 2016

Questions without Notice

Defence Procurement

2:30 pm

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

Thank you, Mr President. My—

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | | Hansard source

When are we getting those 12 submarines?

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

You lightweight! Slagging and bullying are engrained in your union DNA. You are a lightweight.

Opposition senators interjecting

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

Order. Senator Edwards!

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

My question—

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

Just a moment, Senator Edwards.

Honourable senators interjecting

Order! Senators on my left! Senator Edwards, if you have a question, ask a question.

Senator Cameron interjecting

Order, Senator Cameron!

Honourable senators interjecting

Order, on both sides. Senator Edwards.

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

Thank you, Mr President. My question is to the Minister for Defence, Senator Payne. Can the minister advise the Senate how the government's continuous naval shipbuilding strategy will benefit Australian workers and industry?

2:31 pm

Photo of Marise PayneMarise Payne (NSW, Liberal Party, Minister for Defence) Share this | | Hansard source

I thank Senator Edwards for his question and for his very strong advocacy of Australian industry and our economy. I am very pleased to say that the government's continuous shipbuilding strategy will have significant benefits for workers in the shipbuilding industry. Our plans for a continuous build of major naval ships in Adelaide and other vessels in Western Australia will secure more than 2,500 shipbuilding jobs for decades to come.

Senator Kim Carr interjecting

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

On my left! Senator Carr!

Photo of Marise PayneMarise Payne (NSW, Liberal Party, Minister for Defence) Share this | | Hansard source

For the first time, these workers in this country will have a career that is not constantly interrupted when one project ends. That is what a continuous build philosophy actually does. But, in terms of broader benefits to the Australian industry and to workers—which Senator Edwards asked about—the 2,500 shipbuilding jobs figure does not even include the thousands of indirect jobs that will be created through the supply chains that are needed to support the shipbuilding industry. So some of those immediate supply chain jobs which would be included in this consideration are related to the development of infrastructure at shipyards. They might also include metal fabrication or the manufacture of leading edge electronic systems. In fact, the opportunities are absolutely enormous.

Senator Kim Carr interjecting

Senator Cameron interjecting

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

Senators Carr and Cameron!

Photo of Marise PayneMarise Payne (NSW, Liberal Party, Minister for Defence) Share this | | Hansard source

That is why this government has recognised the Defence industry as a fundamental input into capability in the defence white paper and the defence industry policy statement for the first time.

We are actually getting on with the job. We have made very important announcements in relation to naval shipbuilding—in complete contrast to those opposite who did absolutely nothing. Not one order placed with an Australian shipyard—nothing. That is the difference.

2:33 pm

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Will the minister explain how the government's continuous naval shipbuilding strategy will help to drive innovation, develop cutting edge technology and transition to the new economy?

Photo of Marise PayneMarise Payne (NSW, Liberal Party, Minister for Defence) Share this | | Hansard source

That is a really good question. To deliver and to implement our plan for a sustainable naval shipbuilding industry, both Defence and industry need to become more innovative. We need to continue the development of cutting-edge technology, for which Australia is already particularly well known. For example, one of the key technologies that we will include in the Future Frigate will be the phased array radar system that was developed right here in Australia by CEA Technologies. It is both innovative and cutting-edge, and it will provide the Australian Defence Force with unique home-grown capability. That is only one example of the sorts of technologies that need to be developed not just for the Future Frigate but for our other naval vessels, for which there will be others required as well.

As we develop indigenous technology and indigenous business like that, and as we grow Australian industry, we are also going to be able to enjoy spillovers into other sectors. Often the technologies that are developed to support defence capability needs can be used and commercialised in other areas as well. That is what is going to drive our nation into a 21st-century economy. (Time expired)

2:35 pm

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. Can the minister advise the Senate how the government will maximise Australian industry involvement in our shipbuilding programs?

Senator Kim Carr interjecting

Senator Edwards interjecting

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

You have asked your question. Order, Senator Edwards and Senator Carr!

Senator Kim Carr interjecting

Senator Edwards interjecting

Senator Ian Macdonald interjecting

Senator Carr and Senator Edwards, it is disorderly to talk across the chamber. And Senator Macdonald.

Senator Cameron interjecting

Senator Ian Macdonald interjecting

Senator Cameron and Senator Macdonald!

Photo of Marise PayneMarise Payne (NSW, Liberal Party, Minister for Defence) Share this | | Hansard source

Thank you very much, Mr President. Such a great interest in maximising Australian industry involvement—which is very important. Each of the short-listed designers for the Future Frigate and the Offshore Patrol Vessels programs will be required to develop an Australian industry capability plan that maximises opportunities for small to medium Australia suppliers in both the build and sustainment phases. Those plans are required to include a strategy to transition their existing supply chains to Australian supply chains and to explore opportunities to integrate their Australian suppliers into the global supply chains.

The small- to medium-sized industry, which is so predominant in the Australian defence area, will also be assisted by the government's Centre for Defence Industry Capability, which, as you know, Senator Edwards, will be headquartered in Adelaide. It will help them to better understand and meet the opportunities offered through these very substantial projects.

Our commitment to a strong defence industry, as set out in our defence white paper and defence industry policy statement, is a key pillar of our shipbuilding program.