Senate debates

Tuesday, 11 October 2016

Questions without Notice

Defence Industry

2:30 pm

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Fawcett for that question. Before answering it, though, may I join with my good friend and valued colleague the Leader of the Government in the Senate, Senator Brandis, in congratulating Senator Farrell on his elevation to the Deputy Leader in the Senate position in the Labor Party.

The government today announced that ASC will be structurally separated into individual shipbuilding, submarine sustainment and infrastructure businesses. This ensures that ASC has the best possible structure to pursue future shipbuilding opportunities and support the government's naval shipbuilding objectives. The infrastructure company will hold and manage significant upgrades of shipbuilding and infrastructure assets to support future shipbuilding and submarine programs. In this context the government recognises that the Adelaide shipyards are strategic national assets, including the South Australian government's Techport. The Osborne Precinct will play a key part in facilitating naval shipbuilding in Australia over the long term. Discussions with the South Australian government will ensure that both the state government and the Commonwealth government are aligned to ensure a cohesive approach to naval shipbuilding. This reflects a new approach to key elements of Australia's naval shipbuilding infrastructure to promote Australian capability and protect our national interests.

The shipbuilding company will employ the skilled shipbuilding workforce and complete the air warfare destroyer project, which is on track for delivery consistent with the timetable in the budget announced in December 2015, and the submarine sustainment company will employ the submarine sustainment workforce and sustain Collins class submarines. These structural changes will not impact ASC employees' terms and conditions and it will help ensure that ASC is in the best possible position to pursue future shipbuilding opportunities and support the government's long-term plans for the Australian naval shipbuilding industry.

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