Chris Ketter (Queensland, Australian Labor Party) Share this | Hansard source

I rise to make a contribution to what tragically appears to be another broken promise in the making by this government of twisted priorities. I rise to talk about the issue of the submarine program. Yesterday we had the economics committee's inquiry into naval shipbuilding release its second interim report, which focuses on Australia's Future Submarine project. I am privileged to be a member of the committee. The committee heard from well-respected and senior industry experts on the importance of our submarine building industry. They overwhelmingly told us that that building, maintaining and sustaining our new submarines in Australia is in our country's long-term economic and national security interest.

The government has argued there would be a capability gap if a tender process were undertaken rather than their intended option of buying off the shelf. Over the course of the committee's public hearings, we heard from expert after expert that a competitive tender process should not be bypassed. Importantly, evidence to the committee also made clear that, if the government moved now to conduct a competitive tender process, Australia would not suffer from a submarine capability gap.

But you do not have to take my word for that. What did the experts say on the need for a competitive tender? We have heard reference to Dr John White here today. He is a well-recognised expert in the field. He said:

There are significant technical, commercial and capability gap risks invoked by prematurely and unilaterally committing to a preferred overseas, sole-source supplier.

The Hon. Martin Hamilton-Smith, South Australian Minister for Defence Industries said:

It just beggars belief that you would go with one provider without testing the market.

Mr Chris Burns, Defence Teaming Centre, said:

You will never know the true potential cost of a project until you get multiple companies to put their names to dollar figures on firm tender bids.

And what did these experts say on the supposed capability gap? Dr John White said:

There is still sufficient time available, with adequate contingency, for the competitive PDS to be carried out and to build the Future Submarines in Australia.

When visiting our submarines in Adelaide I was filled with an overwhelming sense of pride at what we are capable of building, right here in Australia. As witnesses at the inquiry said, we can and we should continue to build and maintain our submarines in Australia. There are a number of experts who made similar comments. Mr Malcom Jackman, Defence SA, said:

A vibrant and sustained naval shipbuilding industry of all shapes and forms is vital to our self-reliance.

Retired Commodore Paul Greenfield said:

The future submarine should be designed specifically for Australia and built here in Australia. A sail-away cost of $20 billion for 12 submarines built in Australia is entirely feasible, and Australian industry has much to offer in solving the truly unique engineering challenges.

Mr Chris Burns, Defence Teaming Centre, said:

Australian industrial tenacity and innovation turned the project around to the point where we now operate among the most capable conventional submarines in the world.

It seems the government have tied themselves into strange knots in their wildly varying positions on this issue.

At times, the dissenting report from the coalition senators contradicts itself. In one part it argues against a competitive tendering process due to lack of government oversight:

In theory a competitive tender process can lead to the lowest price for government and potentially value for money. In practice, the contractor almost always has more information than the government about the costs and risks of a project.

But then later on in the dissenting report they argue for a competitive process; then they argue against more oversight:

Imposing direct managerial oversight by government would be counter-productive to maintaining these competitive efficiencies.

Australia's future submarines are one of Australia's largest ever defence acquisitions and will be crucial for our national security for decades to come. I have visited the Collins class submarines at ASC in Adelaide and, unlike this government, I could not help but be impressed and incredibly proud of what we are capable of building in Australia.

The experts are on board; the industry and the public are on board. It is time the government got on board. (Time expired)