Anne Urquhart (Tasmania, Australian Labor Party) Share this | Hansard source

At the request of Senator Gallacher, I move:

That the Senate—

(a) notes that:

(i) before the 2016 Federal election, the Government claimed that over 90% of the Future Submarines work would occur locally but subsequently backpedalled and claimed that 60% represented a local build, and

(ii) the Government failed to secure enforceable minimum Australian Industry Capability (AIC) commitments in the Future Submarines Strategic Partnering Agreement (SPA) it signed last year;

(b) recalls that in February 2020, former Defence Minister Christopher Pyne boasted the Government had ensured the SPA did not include a mandatory minimum AIC commitment, erroneously claimed that governments over past decades had not required such commitments, and opined 'nor should they';

(c) further notes that in February, Senator Reynolds announced Naval Group was committed to AIC of at least 60% of the value of its Future Submarine contract but:

(i) this includes services like language training that have nothing to do with building a submarine, and

(ii) 274 days after Senator Reynolds said this would be contractually formalised, that has not occurred; and

(d) calls on the Government to deliver on its promises and put the interests of workers, local businesses and our defence forces ahead of its political interests.