Arch Bevis (Brisbane, Australian Labor Party) Share this | Link to this | Hansard source

My question without notice is to the Minister for Defence. Will the Minister for Defence inform the House what action the government is taking to begin fixing the Howard government’s legacy of dysfunctional defence equipment projects?

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

I thank the member for Brisbane for his question. Few people in this place could match his expertise or longstanding interest in defence matters. I was very pleased to learn that, I think, only today the member for Brisbane was elected Chair of the Defence Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade. There could be no better choice, and I know he will do fantastic work in that new role.

Last week the government made what might be one of the toughest decisions it will take over the course of this parliament. The National Security Committee of Cabinet had to decide whether to continue to throw money at a project not likely to ever succeed or to bite the bullet and scrap the former government’s infamous Seasprite helicopter project. Unfortunately and tragically, on this occasion biting the bullet means flushing $1.36 billion of taxpayers’ money down the drain. That is a lot of money in anybody’s language. But the decision was not just about money, as important as that is. It was also about the safety of those in uniform who fly our aircraft. The new government wants to make sure that future capability meets the highest possible standards in the 21st century.

The Seasprite helicopter project is already seven years late. Think about this: if the government wanted to do what the former government was doing—take another gamble, take another punt—the capability may be brought on-stream in the not-too-distant future. The reality is that it would have been another three years before that capability was delivered. That means that in total the project would have been 10 years late. I said during a press conference last week that that would be like taking a 2008 Commodore to the 2018 Bathurst 1000. Given that we do not know where vehicle technology is going or how fast it is moving, maybe the better analogy would have been taking a 1998 Commodore to the 2018 Bathurst race. The government is determined to bring sound economic management to defence procurement to ensure that the Australian Defence Force gets the capability it needs to do its job efficiently, effectively and in as safe a manner as is possible and that taxpayers get value for money. The Seasprite helicopter project is probably one of the worst projects that we inherited from the former Labor government.

Opposition Members:

Opposition members interjecting—

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

The former government!

Opposition Members:

Opposition members interjecting—

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

Yeah, yeah: big point! I will wear the faux pas.

Opposition Members:

Opposition members interjecting—

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

I hear the interjections. Can I just remind the House that the Seasprite helicopter project—the Leader of the Opposition is agreeing it was the worst—was a project that was signed by the Howard government in 1997. It is true that the Keating government had an idea of placing a new helicopter on what was to be the offshore patrol combatant, a project in partnership with the Malaysian government which never transpired. When the Howard government were elected, and the combatant project was scrapped, they decided they would buy it anyway. They went to tender, chose the contractor—Kaman—and proceeded with the contract, which was signed in 1997. It was very much the project of those who sit opposite.

But I was trying to say that, while the Leader of the Opposition agrees it is the worst project, it is just one of many nightmare projects we have inherited from the former government—in fact, the list is very long indeed. But what are the others? I hear the shadow minister for defence, Senator Minchin, regularly these days denying these projects exist. He is in some form of denial. He knows only too well that these projects are very real. I am happy to brandish the folder—this catalogue of waste and mismanagement running into the billions and billions of dollars.

Opposition Members:

Table it!

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

They invite me to table it but they know it is commercial-in-confidence, they know it is secret and they know how irresponsible it would be and indeed how—

Luke Hartsuyker (Cowper, National Party, Deputy Leader of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, I ask the minister to table the document.

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

The only person on that side not calling upon me to table that folder is the Leader of the Opposition, because the Leader of the Opposition knows exactly what is in that folder!

Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, could I please ask the Minister for Defence to table the red folder.

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

How disingenuous was that request, coming from the bloke who knows better than anyone that I am in no position to table these commercial-in-confidence and, in some cases, secret documents. He knew he was on very safe ground.

Opposition Members:

Opposition members interjecting—

Bruce Billson (Dunkley, Liberal Party, Shadow Minister for Broadband, Communication and the Digital Economy) Share this | Link to this | Hansard source

‘Dear president of Iran, it was a bit like this ...’!

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Dunkley is denying the member for Fadden the call. I hope that this is a different point of order.

Stuart Robert (Fadden, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. The minister has indicated that the documents are classified, indeed secret, yet I note that that there is no classification on the top or the bottom of the folder.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

There is no point of order. The member will resume his seat.

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! Before giving the minister the call I ask that the minister ignore the interjections and that the interjections cease.

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

Of course, the Leader of the Opposition knew he was on safe ground asking that question because he knows better than anyone in this place what is in that folder and that it is impossible for me, as much as I would like to, to table that folder.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Hockey interjecting

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

The member for North Sydney says, ‘What’s in the folder?’ Let me just mention a couple of things that have been well and truly covered in the press that I can talk about briefly. What about the Adelaide class FFG upgrade? What about the $3.5 billion Wedgetail project? What about the lightweight torpedo project? The Leader of the Opposition is familiar with all these projects. Prior to the election, we made a promise that, if we were elected, we would review these projects as a matter of priority—and we are carefully, thoroughly and as quickly as we can working our way through each of these projects.

In the case of Seasprite, we have shown a willingness to make the tough decisions when it is necessary, something the former government was not prepared to do. We will do so especially when the security of the nation and the safety and capability of the Australian Defence Force are at stake. The consequences of the decision not to proceed with the project are very complex, and discussions with the project contractor regarding the legal and financial arrangements have commenced. Indeed, a negotiating team from the DMO went to the United States just last weekend. I will provide further details about the arrangements once those negotiations are complete.

Of course, the Navy will still need the capability that the Seasprite helicopter would have provided. These matters will be more fully investigated as part of the government’s new defence white paper process, something the former government should have done some time ago. In the meantime, Defence will look at how best we can provide that additional capability using our existing fleet of Seahawk helicopters. The government is determined to ensure that the capability gap created by the former government’s incompetence is filled as quickly as is possible.

I acknowledge that the cancellation of this contract may affect up to 55 industry employees in the Nowra region. The opposition might want to listen to this point, Mr Speaker. Thankfully, the skills those employees hold are heavily in demand in the Australian economy. In addition, the government is committed to ensuring that the investment we have made in their skills will not be wasted, and we have engaged a local human resources company to assist those employees in being re-placed. Of course, effective Defence Force personnel will be repositioned or redeployed into other helicopter activities.

Defence helicopter activities across the Nowra region are set to expand, and the government remains committed to the expansion of those projects.

Opposition Members:

Opposition members interjecting—

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

The member for Gilmore, I suspect, will be interested in this, if those who sit on the front bench are not. The decision to cancel the Seasprite helicopter project is one that should have been taken by the former government years ago. They had the same facts and figures available to them as we now have available to us, but the reality is they put their own political interests in front of the national interest. You will recall that sitting on the former national security committee were the now Leader of the Opposition, the former Treasurer, the former Minister for Foreign Affairs and the former Attorney-General. Since the NSC, under the Howard government, last made the decision to proceed with the Seasprite helicopter project, some $26 million of additional taxpayers’ money has been spent on that project—a $26 million gamble with taxpayers’ money by the former National Security Committee of Cabinet.

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The members on my left will not encourage him.

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

Interestingly, the response of Senator Minchin, the now shadow minister for defence, to the government’s announcement of last week was to say: ‘That’s all good. We agree with the decision.’ The former government now agrees with the government’s decision. But it was interesting that he was forced to point out that the Leader of the Opposition fought to have the project scrapped in that national security committee in around April or May last year. What was his defence of the now Leader of the Opposition? ‘He was rolled.’ He was rolled by his own cabinet colleagues. It is about leadership. This issue now and all these failed capability projects will be about leadership.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! Minister, whilst the question was well crafted by a senior member of this place, it does not invite him to get into a debate. I think that the minister should find a finish to his response.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

He’s just getting started!

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Leader of the House will not encourage him.

Joel Fitzgibbon (Hunter, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

The responsibility now falls to the new government to sort this mess out. We are determined to show leadership on the Seasprite question and on these other capability projects. We will ensure that the Defence Force gets the capability it needs and that taxpayers get value for money.

Luke Hartsuyker (Cowper, National Party, Deputy Leader of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. I point out that that was in fact a 15-year record for a lengthy answer.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member will resume his place. Order! Whilst there was noise before the member for New England got the call the last time, earlier in the day, I want quiet. I call the member for New England.