Rex Patrick (SA, Nick Xenophon Team) Share this | Hansard source

I move:

That—

(1) The Senate notes that:

(a) in April 2016, former Australian CEO of Future Submarine designer DCNS (now known as Naval Group), Mr Sean Costello, stated to the media that "over 90 per cent" of the $50 billion submarine build would take place in Australia;

(b) shortly after, the Minister for Defence Industry (Mr Pyne) reiterated those comments on ABC's Q&A program;

(c) in June 2017, Mr Brent Clark, CEO of DCNS Australia, told a Senate committee that "an aim point of greater than 60 per cent would be something that [DCNS] would aim for";

(d) in October 2017, it was reported by Fairfax media that the Minister made public comments at the Pacific 2017 Naval Conference clarifying the definition of a local build to be 60 per cent, and confirming that at least 60 per cent of the work on the submarines would be done by Australian firms;

(e) in February 2018, Mr Costello confirmed that the 90 per cent build figure "absolutely" went into the tender response presented to the Australian Government, "down to the percentile" and it is reasonable to presume that this 90 per cent build figure would have influenced the Australian Government's decision to award the contract to DCNS;

(f) the level of Australian industry involvement and local content in the Future Submarine Project is critical to Australia's defence industry, Australian jobs, and the economic benefit that the Future Submarine Project brings; and

(g) there needs to be clarity on the minimum level of Australian industry involvement in the Future Submarine Project.

(2) There be laid on the table by the Minister representing the Minister for Defence Industry, by no later than 3.30 pm on 14 February 2018, the Australian Industry Capability Plan submitted by DCNS to the Department of Defence in its response to the Future Submarine Competitive Evaluation Process (CEP).

I seek leave to make a short statement.