Barry O'Sullivan (Queensland, National Party) Share this | Hansard source

Mr Acting Deputy President, I seek leave to incorporate into Hansard a speech of Senator Fawcett, Chair of the Defence Subcommittee, that was meant to have been delivered at the time the Joint Standing Committee report on Foreign Affairs and Trade was tabled.

Leave granted.

The speech read as follows—

REVIEW OF THE DEFENCE ANNUAL REPORT 2012-13

Mr President, on behalf of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I have pleasure in presenting the Committee's first report for the 44th Parliament, entitled Review of the Defence Annual Report 2012-13.

The Review of the Defence Annual Report is an important oversight activity. It provides an opportunity for the Defence Sub-Committee of the Joint Standing Committee to inquire into a broad range of Defence issues as part of the process of accountability of Government agencies to Parliament. The Sub-Committee considers this to be a key part of its role.

The Sub-Committee resolved to focus on five main areas for its review:

The Sub-Committee heard from Defence officials at a public hearing held on the 6th of June. It also received evidence from the Australian Strategic Policy Institute, and two industry participants, ClinetiQ and Nova Systems.

As part of its review, the Sub-Committee considered Defence estate issues, including the cost pressures associated with the maintenance of heritage listed buildings. The Committee recommends Government should review the process by which Defence properties are placed on the Commonwealth Heritage List and how their maintenance is funded.

The Sub-Committee also considered the efficacy of Defence contracts to ensure that SMEs are paid in a timely manner by prime contractors. Based on evidence received, the Committee recommends that Government should review its contract templates and procurement processes.

The Sub-Committee considered the scope of the Defence Cooperation Program and options for a Whole of Government approach to supporting regional partners. Noting the complexities of achieving a structured and coordinated regional security effect, the Committee commends Defence on the development of a future framework in the Pacific. However, Australia needs to ensure it is achieving value for money with the Defence Cooperation Program, and specifically, the Pacific Patrol Boats Program.

Mr President, during the course of the review, it became apparent that, despite some positive developments, Defence's approach to capability management remains fragmented. There does not appear to be a single contiguous system which Defence can use to conduct capability-assurance from definition, through acquisition and service-life, to disposal.

The Committee believes that the introduction of such a system, potentially managed by the Vice Chief of the Defence Force, would increase transparency and enhance oversight by Government and the Parliament of capability management by Defence.

That being said, it was pleasing to see positive outcomes arising from the SEA 1000 industry Integrated Project Team - a working group made up of Defence and industry experts who are developing the design brief for the new submarines and examining potential industries able to execute such a project. The Committee encourages the further development of this initiative, along with transparent communication of the team's views to Government.

The Committee believes that expertise within the private sector could be leveraged for all stages of the capability development life cycle. Rather than contracting for specific packets of work, greater benefit could be gained by entering into a teaming arrangement as part of a whole-of-life approach to identifying and managing risk.

The Committee is also concerned by the lack of detail in the Defence Annual Report on the progress of implementation of all the Coles review recommendations relating to the Collins Class submarines. This is something that needs to be expanded upon in future Defence annual reports.

Mr President, it is disappointing to note that the Committee is still awaiting a response from Defence to the recommendations of its previous Defence Annual Report review, which was tabled in June last year. The Committee hopes to receive a response to its previous review shortly.

The Committee acknowledges the dedication and commitment of the servicemen and women of the Australian Defence Force and commends them on the outstanding service they provide to the nation. The Committee also recognises that the members of the ADF are supported by an enduring network of families, friends and loved ones and to these people we give our thanks.

Finally, the Committee notes the loss of Lance Corporal Todd Chidgey during 2014. Our deepest condolences and thoughts are extended to his family and friends.

Mr President, I commend the report to the Senate.

I seek leave to continue my remarks.

Leave granted; debate adjourned.