Senate debates

Tuesday, 26 June 2018

Questions without Notice

Defence Procurement

2:22 pm

Photo of Peter Whish-WilsonPeter Whish-Wilson (Tasmania, Australian Greens) Share this | | Hansard source

My question is to the Minister for Defence, Minister Payne. The 2016 Defence white paper says the government would be acquiring seven Triton drones at a cost of between $3 billion and $4 billion. Today, only two years into the life of the white paper, the government has instead said it would be acquiring six drones at a cost of $7 billion. This amounts to a doubling of the cost or a blowout of more than 100 per cent. Can you please clarify for the Senate exactly how many drones you are buying and what they are costing, and, if today's reports are accurate, given you are spending nearly $200 billion of taxpayers' money on defence, how can the Australian people have any confidence that there won't be billions and billions of dollars more in cost blowouts?

2:23 pm

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

I thank Senator Whish-Wilson for his interest in the acquisition of the MQ-4C Triton, which will, of course, provide the Air Force with a high-altitude, long-endurance, remotely-piloted aircraft system which is optimised for use in maritime intelligence, surveillance and reconnaissance. It is designed to operate either alone or in conjunction with the P-8A Poseidon.

I note the senator's reference to the defence white paper. The government's indication today is the commencement of the acquisition program for the MQ-4C Triton. We have indicated that our intention is to purchase six, with an option to look at a seventh.

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Senator Whish-Wilson, a supplementary question.

2:24 pm

Photo of Peter Whish-WilsonPeter Whish-Wilson (Tasmania, Australian Greens) Share this | | Hansard source

I got to my feet just a little bit too late there, Minister! You didn't say what they were going to cost, which was the key part of my question—

Government Senators:

Government senators interjecting

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Order on my right!

Photo of Peter Whish-WilsonPeter Whish-Wilson (Tasmania, Australian Greens) Share this | | Hansard source

and why you got it so badly wrong and whether you're making this up as you go along. Can the minister rule out cuts to other government services to fund these kinds of cost blowouts that will see billions of dollars of taxpayer money, by the way, going to some of the most profitable arms manufacturers on the planet?

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

As Senator Whish-Wilson is well aware—he is an active participant in the Defence estimates process and in discussion around Defence's Integrated Investment Program and defence budget matters—those matters which go to the cost of the programs are always managed through the Integrated Investment Program, which was released in conjunction with the white paper to which the senator has previously referred. We've talked in that process about managing the cost through the IIP itself. That is the way we intend to do it; it's the way we've been quite public about doing it.

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Senator Whish-Wilson, a final supplementary question.

2:25 pm

Photo of Peter Whish-WilsonPeter Whish-Wilson (Tasmania, Australian Greens) Share this | | Hansard source

Minister, I suggest you're not doing a very good job, given that cost blowout. Your own 2016 Defence White Paper also did not identify an escalation in our region in the overall threat level to Australia. Today, the media have written up the announcement as Australia joining the drone wars. Minister, shouldn't we be looking to de-escalate tensions in our region, rather than fuelling a regional arms race that is only likely to increase tensions and the likelihood of conflict in our region?

2:26 pm

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

I completely reject the premise of Senator Whish-Wilson's question that the acquisition of the MQ-4C Triton goes to that in any way. What it does go to is ensuring and addressing questions around the safety of Australia and our interests. That is the role of the Australian Defence Force, and it is the role of a government to protect the nation and our interests. In this region, a region in which our area of maritime surveillance covers 10 per cent of the earth's surface, the surveillance task is a very considerable one, and Senator Whish-Wilson is well aware of that. It's considerable in terms of what we do for ourselves and it's considerable in terms of what we do more broadly to add to regional security and stability, and this particular capability will make a very significant contribution to addressing the challenges that we face.