Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Payne. Last Friday, in evidence to the Senate inquiry on the future of naval shipbuilding, defence officials revealed that, after the announcement of the Austal-ASC teaming agreement, Mr Kim Gillis, deputy secretary of CASG, called three international bidders for the $35 billion Future Frigate program and assured them they were not required to utilise the Australian workforce. Why are bidders for the program being discouraged from working with Australian companies?

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

I thank Senator Gallacher for his question. I don't have the benefit of the Hansard of the committee hearing, because, as I understand it, it has yet to be produced. But what I do understand is that Defence officials appearing before the Senate Economics References Committee last Friday outlined that, following the announcement of the ASC-Austal teaming arrangement in June this year, the deputy secretary of the capability acquisition and sustainment group, Mr Gillis, did contact each of the Future Frigate tender participants to assure them that they were able to continue to rely on the tender documents.

Now, I'm not going to canvass the details of the tender, because it is an active tender that is underway. But the provisions of the tender documents and the assurance that Mr Gillis provided to those participants were to say that, while Defence has not mandated a particular workforce, Defence has placed an obligation on industry to maximise Australian industry involvement. All three of the international shipbuilders invited to tender on the Future Frigate program have said that, if they are successful, they will use the existing and experienced shipbuilding workforce in Adelaide as the base from which to grow the workforce they need to deliver on our continuous naval shipbuilding program. Let me remind the chamber that that naval shipbuilding program is intended to create more than 5,200 direct jobs by the mid-2020s, with another 10,000 created across the supply chain. That will be a threefold increase on the workforce we already have. Any suggestion otherwise is nothing but grandstanding and, frankly, from those opposite, blatant hypocrisy, given their appalling, negligent record on naval shipbuilding in this country. (Time expired)

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

Senator Gallacher, a supplementary question.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My supplementary question is to Minister Payne again. How is this action consistent with the comments made in October by the Minister for Defence Industry, who proclaimed, 'It is critical that we provide Australian companies with opportunities to enter the supply chain'?

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

It is absolutely consistent with any observation about providing Australian companies with opportunities to enter the supply chain. We have had dozens of industry days between the naval shipbuilding program, both surface and submarine. We have involved hundreds and hundreds of Australian businesses in that process. Let me just remind the chamber of a number of observations of all the three international shipbuilders who've been invited to tender on the Future Frigates program. BAE Systems Australia said:

If successful on the SEA 5000 program, the Company intends to not only utilise the current South Australian ship building workforce, but would complement this with skills from other sectors and commit to an early careers program to bring in hundreds of apprentices and graduates over the life of the program.

Navantia Australia said:

When we already have an experienced shipbuilding workforce in Adelaide, why would we look anywhere else?

Fincantieri said:

… our proposal will create long-term security for the Adelaide shipbuilding workforce, build a new advanced manufacturing industry nationally …

It is still not good enough for those opposite—still not good enough for them. (Time expired)

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

Senator Gallacher, a final supplementary question.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Will the Future Frigates program maximise the use of Australian companies and Australian workers, and, if so, how?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

She just told you.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

No; Australian companies, Senator Brandis.

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

Order on both sides!

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

Yes and yes.

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.