Alex Gallacher (SA, Australian Labor Party) Share this | Hansard source

Thank you. Prime Minister Tony Abbott said: 'But that's no excuse for denigration of the workforce or extensive capabilities South Australia has, which I am confident will enjoy more jobs from increased investment in the future,' he said.

It goes on and on and on. We have a contribution from Senator Fawcett, who has called for a competitive tender on the project. He said the overseas experience showed it was not abnormal to have cost overruns and that such blowouts were worse at other sites around the world.

Senator Edwards, who also came out recently to call for a competitive tender, said he was 'in full support of ASC and the people in it' and that through the shipbuilding inquiry he had heard enough evidence to shore up that position. That was from 25 November.

The Age reported:

A spokeswoman for ASC declined to comment and referred questions to the office of Finance Minister Mathias Cormann, who serves as the firm's shareholder on behalf of the federal government.

Senator Cormann's office did not respond to inquiries by deadline.

Some members, particularly South Australian members, will be aware of the good Matthew Abraham who had this to say when speaking with Mr Pyne:

HOST: I am. I’m asking you, if you’ve got a Defence Minister who really can’t handle his language, and sends a signal to Adelaide that we can’t 'build a canoe' – that’s how incompetent we are, our workforce here – and then has to be effectively kicked up the bum by the Prime Minister in a statement this morning, and then goes on Adelaide radio – he came on our program – and is backtracking from it; I’m asking you whether he’s competent enough to fill one of the most important roles in Cabinet?

PYNE: What is important is that the Prime Minister and the Government have confidence that the ASC can turn around some of the difficulties they have experienced in the Collins Class submarine and in the Air Warfare Destroyer build. [And] that we are working with them to ensure that that happens. Even the three wise monkeys who could see no evil and hear no evil and speak no evil know that the Air Warfare Destroyers and the Collins Class submarines have both had their challenges.

PYNE: What is important is that the Prime Minister and the Government have confidence that the ASC can turn around some of the difficulties they have experienced in the Collins Class submarine and in the Air Warfare Destroyer build. [And] that we are working with them to ensure that that happens. Even the three wise monkeys who could see no evil and hear no evil and speak no evil know that the Air Warfare Destroyers and the Collins Class submarines have both had their challenges. Now the Minister for Defence shouldn’t have made that statement. He regrets making it. The Prime Minister has made it clear that he doesn’t support that statement. The Defence Minister has been on Adelaide radio this morning indicating he regrets it. It was made in the heat of the moment and obviously we don’t share that emotion.

HOST: Do you have confidence in David Johnston?

PYNE: He’s a very competent Minister. He’s an important member of the Coalition team and I’m working with him and I’m working with the Prime Minister to ensure the Osborne workers keep their jobs and that we add to the workforce—

HOST: So, you’d like to see him continue being Defence Minister?

PYNE: It’s not for me to indicate my preferences for who should be in the Cabinet. That is a decision of the Prime Minister. It’s certainly also not my role to criticise my fellow Cabinet members and I won’t be doing that. But I can tell your listeners that, as the South Australian Cabinet Minister, I’m working with both the Defence and Prime Minister’s offices to ensure that Osborne workers’ jobs are secured and that the workforce at Osborne increases, the investment in South Australia increases, which is already incredibly—

So all along the way people are walking away from what is obviously a very conflicted and incompetent minister, one who does not control his own agenda in Defence, one who does not have the backbone and the fortitude to stand up for his portfolio, one who has suffered interference from the PMO's office and one who is going against all of the relevant experts that we have had come to Senate inquiries.

Let us quote Warren King, who said:

We had done study work. We have built up an improved body of knowledge about submarine design in our IPT team in South Australia.

… … …

We have built up this body of knowledge and we have done a lot of other work with different consulting groups in understanding the submarine design drivers that we need to take into account to get a submarine that meets Australia's strategic needs.

The other side is fond of claiming that the Labor government did nothing. The Labor government provided over $200 million for detailed studies and analysis to inform the government's decision on the design of Australia's next submarine. About $80 million has been spent. This led to the decision in May 2013 to stop investigation of military off-the-shelf designs and focused on progressing two options: an evolved Collins and a new design. This research also informed our decision to use the US combat system for submarines. This can now be used as a reference point for future submarine design work.

What we have really got here is a critical case of neglect in South Australia. We need a manufacturing base and this decision will affect South Australia for generations if we do not make the right decision here. What is wrong with a full competitive tender? What is wrong with a full, open, transparent competitive tender? What is wrong with releasing the Winter report? Why is the government withholding critical information? Why are they not going ahead with what is a truly common-sense approach to this?

If you want to have submarines as the spear in Australia's national defence, we need the best submarines.