Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

The government’s policy is to put defence projects through the Kinnaird review. All of those projects were put through a rigorous system of assessment. The government does not make decisions lightly. We are probably the most economically responsible government this country has ever had. We put all these sorts of defence projects through rigorous treatment. In relation to the Seasprites, which are topical today, I confirm that the requirement for the aircraft was established in 1995, but of course it is true that the contract with the chosen supplier, Kaman, was signed in 1997. But I should say for the record that, because of the notoriety that attaches to that contract, the government has not made any decision to cancel or terminate the contract. There is a review of the project. There is no doubt that it is suffering delays, but it is a fixed-price contract. The contractor is not being paid any more than the agreed contract price. We regret the delay in the delivery of those helicopters. We welcome Senator Bishop’s interest in this project. One of the useful things oppositions can do is ensure that the DMO and Defence are on top of their projects.

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