Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Hansard source

I do thank the member for Wakefield for his genuine and ongoing interest in this matter. I know it is important to him and I know it is important to his electorate, but I need to remind him that Labor is all talk on Australia's future submarine capacity. Well may you smile, but Labor had six years to make a decision on this and did absolutely nothing.

This government is determined to get the right submarine capability at the right price. No decisions have been made on the design, construction or sustainment of Australia's future submarine capability. Decisions on a design partner and construction of the submarines will be based on a competitive evaluation process, managed by Defence, which takes account of capability requirements, cost, technical risk, schedule and value for money.

On 5 June 2015 the Minister for Defence announced an expert advisory panel to oversee that process. I would suggest that questions about those appointments be directed to the minister when Defence takes its turn at consideration in detail. ASC has a range of capabilities, relevant to constructing a new submarine, but it does not have the skills required to develop a new design.

ASC has been engaging with potential international partners from Germany, France and Japan on the basis that the government must be free to choose the right capability for Navy and be unconstrained by any exclusive teaming arrangements entered into by Australian industry. However, we do expect that as a matter of course significant work will be undertaken in Australia during the build phase of any future submarine program, and that a majority of those jobs, member for Wakefield, will be based in your state of South Australia. The government recognises the significant value to our nation of a skilled naval shipbuilding workforce, as I know you do, and that is why we are prepared as a government to invest in its skills and knowledge base.

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