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

My question is to the Minister for Defence, Senator Payne. Can the minister advise the Senate on the government's continual naval shipbuilding program and how it will assist in providing certainty for Australian industry?

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

I thank Senator Edwards very much for his question, because the government's plan to implement a continuous naval shipbuilding program will provide the certainty that Australia's defence industry has been lacking for such a long time. It is also a key element of the government's national economic plan to support the transition to a stronger 21st century economy, to drive jobs and growth and investment. Importantly, our plan provides for the capability our Navy needs to keep us safe in our region and strong on the world stage.

The Turnbull government has now committed to investing in the construction in Australia of our future submarines, our future frigates, our offshore patrol vessels and our Pacific patrol boats. Importantly, both the future frigate and the offshore patrol vessel builds are going to launch our continuous naval shipbuilding strategy, which provides our defence industry with the certainty it needs to invest and to create jobs. We know that our continuous naval shipbuilding program will create around 2,500 direct jobs at both the Adelaide and Henderson shipyards. The future submarine program itself will create around 1,100 jobs in Adelaide as well. These are jobs for the future, as we stop the boom-bust cycle that has cost industry and jobs for far, far too long.

The government's commitment to a continuous naval ship build provides small to medium enterprises across the country—from all over the nation, in fact—who will be part of the supply chains with the work that they will need for years to come, and it gives them the certainty to plan, to invest and to engage in the workplace creation and the technological developments that are so important to this capability, not just on one project but on a continuing flow of work. This is absolutely essential for them to invest in their local communities and to employ Australians. (Time expired)

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

Mr President, I ask a supplementary question. Can the minister explain how a continuous naval shipbuilding program will drive growth, jobs and high-tech innovation right across this great country of Australia?

Opposition Senators:

Opposition senators interjecting—

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

On my left!

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

What about Williamstown? Tell us about—

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

Order, Senator Carr!

Government senators interjecting—

And on my right!

Senator Edwards interjecting—

Senator Edwards, you have asked your question.

Honourable senators interjecting—

Senators on both sides! Senator Birmingham! Minister.

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

Thank you very much, Mr President. The continuous naval shipbuilding program will be supported by those 300 defence industries right across our nation.

Honourable Senators:

Honourable senators interjecting—

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

Order on both sides! I cannot hear the minister. Those on my right and my left!

Honourable senators interjecting—

Senator Carr, and Senator Birmingham, and Senator O'Sullivan! Order! Minister.

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

As I was saying, Mr President, our defence industry in this country is at the cutting edge of technological development that delivers to the ADF—and in this case our naval capability in particular—the world-leading capacity that we need. That is why our commitments to the defence industry—set out, for example, in the Defence Industry Policy Statement and the white paper—are a key element of the Turnbull government's national economic plan to drive jobs and growth, to support the transition to the new 21st century economy. It is an economy that is technologically advanced, with an advanced defence manufacturing industry that will provide new high-tech jobs for decades to come and help to create a stronger, more capable Australian Defence Force. So our commitments to defence industry—to ensure that they can grow more expertise, employ more Australians and drive high-tech innovation—are what is going to deliver the 21st century economy in large part. (Time expired)

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

Mr President, I ask a further supplementary question. Can the minister advise the Senate how the continuous naval shipbuilding program, in conjunction with the Turnbull government's National Innovation and Science Agenda, will help the transition of our nation's economy?

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

That question from Senator Edwards is very important, because this really is a national endeavour. It is about the National Innovation and Science Agenda and the Defence Industry Policy Statement working hand in hand to drive science and innovation right across Australia, particularly in South Australia and particularly in Adelaide. I recently visited a company called Fugro LADS, which supports the Navy in providing a laser airborne depth sound capability using innovative technology that they now export right across the world. That is a real credit to the innovation in South Australia, in Adelaide. I understand Senator Dastyari cannot be here with us this afternoon to enjoy the benefits of what South Australia can deliver. I think Senator Dastyari has given a whole new meaning to 'kicking an own goal' after his experience post the Adelaide United-Western Sydney Wanderers competition. But the most important thing that we will do is to drive the economy into its 21st century transition with high-tech jobs, with high-tech defence capability and with Australian industry. (Time expired)

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is also to the Minister for Defence, Senator Payne. I refer to comments by industry minister, Christopher Pyne, that 'an all-Australian build with Australian steel, Australian jobs and Australian subs was a recommendation from the Department of Defence' Minister, was an all-Australian build the only recommendation of Defence or did it also recommend an option to build the first few submarines in France?

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

Unsurprisingly for Senator McEwen and those opposite, I am not going to canvas the discussions of the National Security Committee in the Senate chamber. But one thing I will do is I will also not apologise for the Australian government's commitment to build our 12 future submarines in Adelaide unequivocally, without dispute in South Australia with Australian jobs, Australian industry and Australian steel.

There is a fundamental difference between us and those opposite and that difference is called decision making. That difference is about making a decision and committing to the future acquisition of the 12 submarines that we need for our strategic capability and that will also engage Australian industry to a point never seen before. That is a decision of which the Turnbull government is justly proud, that is a decision which will create thousands of Australian jobs and that is a decision which will deliver the capability that the Australian Defence Force needs.

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Minister, I refer to your media release of 26 April 2016, which says that DCNS has been selected as the preferred design partner of the submarines 'subject to further discussions on commercial matters'. Minister, has the government entered into a contract that stipulates all 12 submarines must be built in Australia?

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

Let me make this very clear: the 12 future submarines for which DCNS is the preferred international design partner will be built in South Australia at the Adelaide shipyards. Of course as anyone with a basic, even rudimentary knowledge of negotiation and normal commercial processes would be aware, these matters will be finalised through that process. In fact I can only imagine what those opposite would try to say if they decided that we had undertaken too many steps in the process—they would say that was inappropriate so close to an election. They cannot have it both ways. The government's commitment is quite clear, the government's announcement is quite clear and the government's announcement is that the first 12 future submarines will be built in South Australia with DCNS as the preferred international design partner. (Time expired)

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a final supplementary question. When asked by Laurie Oakes on the Sunday Today show to explain the submarine deal, the Treasurer admitted:

This bid we have entered into a negotiation on …

So it is a negotiation now? Minister, hasn't the Treasurer belled the cat? Will the minister now admit that the government's promise of 12 submarines built in Australia with Australian steel are actually, as the Treasury has admitted, up for negotiation?

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

Senator McEwen is completely, absolutely and utterly wrong. The 12 future submarines will be built in Adelaide, in South Australia, designed in conjunction with our preferred international partner, DCNS of France. The government has committed very clearly to the construction of the 12 future submarines in Australia. The commentary that Senator McEwen and those opposite might care to make—and I have not actually seen Senator Conroy on his feet but I am a patient person so we will see how we go—is completely unfounded. The decision could not be clearer. And as much as it irks those opposite that they were incapable of making a decision, this government has.