Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Hansard source

Thank you to Senator Van. I do recall the exchange; I think it was in foreign affairs estimates. I know your interest in defence procurement. If I may, while I'm on my feet I will recognise the members of the ADF who are here today on the parliamentary program. Thank you for your service.

In relation to defence procurement, I think the first point to be made is that the government first has to look to—

Sorry—I thought Senator McKenzie was saying something. The government has to first look through cost and capability. Obviously, there were a number of other countries who had an interest in this particular procurement. They made that interest public. They would engage, obviously, with the foreign minister and I would say to them: 'We deeply appreciate our strategic relationship with you. We will continue working to deepen that, but ultimately these procurement decisions have to be made on capability and on cost.' And that is the basis of the decision that you referenced, which the Minister for Defence and the Minister for Defence Industry and Capability Delivery have announced.

You talked about, I think, the importance of both the Japanese and the Korean relationships. I think I've responded to you before. The relationship with Japan is really second only to the United States in terms of its strategic significance. We have a special strategic partnership with Japan. In terms of Korea, there is such an important strategic alignment with the Republic of Korea. I've visited. We are one of the few countries with whom they have a two-plus-two ministerial meeting. (Time expired)