John Faulkner (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is directed to Senator Minchin as Minister for Finance and Administration and representing the Prime Minister. I refer the minister to the project to upgrade the Navy’s guided missile frigates, originally intended to deliver six fully upgraded, mission capable warships. Is the minister aware that the government canned the upgrade of the two oldest ships in November 2003 because of the massive delays that were already being experienced? Can the minister confirm that former minister Robert Hill said at the time that the contract would be renegotiated to account for the fact that only four ships would be upgraded, instead of the planned six? Can the minister confirm that, as a result of those so-called ‘negotiations’, taxpayers will still pay the full price of the upgrade? Can the minister now explain why he thinks it is a good deal to get four upgraded ships for the price of six?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

I do not represent the Minister for Defence in this chamber. I am happy to get some information for Senator Faulkner on that project, but I do not carry around with me details on every single acquisition project or upgrading project for Defence in question time. I would have thought the questions would be more properly directed to the Minister representing the Minister for Defence. But I will get whatever information I can for Senator Faulkner.

John Faulkner (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I appreciate that the minister will attempt to provide an answer but I am disappointed that the Minister for Finance and Administration is not able to indicate to the Senate how the financial interests of Australian taxpayers are protected in a deal where we get four upgraded ships for the price of six. It is disappointing that the minister, as minister for finance, is not able to respond on this critical issue of how the government agreed to this absurd proposition.

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

Well, as I said, I will get Senator Faulkner some detailed information on that particular acquisition project. But, as Senator Faulkner would know, this country has faced unprecedented demands on its military and national security assets since 11 September 2001—a massive burden. Fortunately, this country has had a government which, with its responsible economic management, has been in a position to respond to the enormous demands placed on its military and its national security, in order to meet the very heavy demands placed upon it, and the massively upgraded requirements for us to invest in defence and national security, which this government is doing.