David Johnston (WA, Liberal Party, Minister for Defence) Share this | Hansard source

I thank the senator for his question. To a degree I share much of his concern about government contracting going to Australian manufacturers. There are many commercial-in-confidence matters that I am about to talk about, so bear with me.

This was a tender released on 27 June 2013 for the supply of three types of boots: fireman safety boots, faun coloured safety boots and black coloured safety boots. At the time the tender was released, there was no expressed requirement for Australian content in the tender. The tender was conducted as a routine procurement that did not exceed the threshold requirements that necessitated notifying the minister's office. So all of what has happened with respect to this particular tender was without my knowledge or the knowledge of any other member of the government.

The previous safety boot requirement was established on 19 July 2011 for two years with Lymington Pacific who manufactured the boots in China. We all know that there have been some serious issues with respect to soles coming off parade boots.

Ten tenderers replied with 14 offers for three types of boots. Regarding the particular boots tendered from Rossi, I confirm what you said to be correct, and that is that value for money was one of the principal considerations. The procurement rules that Defence was complying with are those that have been supported by the previous Labor government and the coalition. Indeed, they do not, pursuant to rule 5.3, discriminate by way of country with respect to the running of the tender. There is a balance to be struck. I am concerned that the amount of money involved is such that this, as you have seen me argue with DPCU, might well have gone to an Australian manufacturer. (Time expired)