Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

The Minister for Defence has provided the following answer to the honourable senator's question:

(1)   Yes.

(2)   In 2010 there were three sustainably crewed Collins Class Submarines operating.

In response to the 2008 Submarine Workforce Sustainability Review, the Chief of Navy agreed to implement all the Review's recommendations and in early 2009 established the Submarine Sustainability Program to execute remediation actions, over a five year, five-phase Submarine Sustainability Strategy.

Since the launch of the Submarine Sustainability Program, it has proved to be a highly effective framework for implementing the 29 Review recommendations and realising intended benefits. The Submarine Sustainability Program is primarily concerned with workforce-related reforms that benefit submariners and their families. The Submarine Sustainability Program has implemented more than two-thirds of the 29 recommendations and is still aiming to achieve the objective of growing a fourth submarine crew without undermining workforce growth in other areas critical to maintaining an effective submarine capability. The Submarine Sustainability Program is the foundation for expanding the submarine workforce to meet Future Submarine capability requirements.

(3)    Until the submarine to be acquired, the support concept and the exact acquisition model are determined; it would be premature to speculate on the likely cost. The public DCP lists the main acquisition of SEA1000 as greater than $10 billion. Considerable work on scope, schedule and cost is required before more detailed data could be made available.

The Minister for Defence has authorised a total of $19.306 million (Dec 11 Price Basis) for the Future Submarines Program.

(5)   Current planning is that the Future Submarines Program will be considered by Government more frequently than less complex Defence acquisitions. Given this planned approach, there may not be a first pass approval as described in the Kinnaird process.

(6)   These costs cannot be specified until the preferred submarine design and its associated usage-upkeep cycle is known.

(7)   The date will depend on the submarine design and acquisition strategy agreed by Government.

(8)   The costs provided are the estimates over the 10-year forward period, which is the estimating horizon, employed by Department of Defence.

Table 1 details DMO's maintenance and support costs for the Collins class submarine, which are primarily incurred for contracted services to support the platform. These costs also include provision of Escape and Rescue Services, the Submarine Escape and Rescue Training Facility and support to the combat system.

Table 1. Current Funded DMFP FYs 2011-12 to 2020-21

Reference: CN 10 Milestone 20120120 (DMO)

The expected operating budget for the six Collins Class submarines in each of the financial years 2011-12 to 2020-21 is detailed in the Table 2. The methodology used is consistent with the recent answer to QON 76 (asked by Senator Johnstone on 31 May 2011). The Operating costs include the cost of suppliers, facilities and personnel in both Defence and DMO deemed to directly contribute to the submarine capability along with rations, fuel, and EO (firings and sustainment costs).

This table does not include sustainment and project costs.

Table 2. Estimated Future Submarine Capability Operating Costs

Note: Excludes Sustainment Costs for Collins Class (CN10)

(9)   Current planning is for the first Collins Class submarine to be withdrawn from service in 2026. This is subject to an exhaustive assessment of the estimated life of the Collins, yet to be effected by Defence. It is intended that the Collins Class submarine withdrawal program will be closely coordinated with the introduction into service of the Future Submarines; the schedule for which is yet to be determined. The transition plan will be designed to minimise the impact on overall submarine availability, the period of transition and the associated costs.