Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to the Minister for Defence. Will the minister confirm that a decision on the future submarine project will be announced within a month? Will this involve a genuine competitive tender process for a short list of qualified tenderers, including the local build, or will it be, as many defence industry experts fear, a Clayton's tender process? Furthermore, will the minister ensure an independent expert review of any tender process and evaluation criteria? Will the basis of any final selection be transparent to the Australian defence industry and to Australian taxpayers?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I can firstly say, thank you for that question. I acknowledge and respect your interest in this subject as a senator coming from South Australia, where we do most of our submarine sustainment. Bear in mind that for almost 20 years we have not built a submarine but we do all of our sustainment there. I can assure you that the process of first and second pass, with respect to the program, will be adhered to. I can also assure you that everything this government does on such an important acquisition will be completely transparent. Bear in mind, through you, Mr President, that, when we talk about sovereign submarine capability, we are talking about things that are national-security sensitive. Any government of any colour is quite restricted in what it can say about the capability, but in terms of cost, process, acquisition process, I will be as transparent as I possibly can be as we go through building up from a very low base of activity to a process where we have a way forward, which should have been done many years ago. Bear in mind some of the considerations in the process are that the Collins class submarine, after 2025, becomes extremely expensive to sustain and maintain. That is the legacy—

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I rise on a point of order regarding relevance. The primary question I asked was: 'Will the decision be announced within a month?'

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Xenophon, there were five elements to your question. The minister is being relevant, and he has been answering portions of those questions you have asked.

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

In drawing all of the loose ends together that have been bequeathed to us by the most incompetent government we have ever known, it is very difficult for me to tell you in the minutiae when certain announcements will come forward. Let me say that, ultimately, it will be a very transparent first- and second-pass process. (Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Does the minister agree with one of the most credible and experienced designers and builders of submarines worldwide, TKMS, which says that there is enough time for a competitive project definition study and build in Australia before the Collins class fleet needs replacing? Has the minister received advice to this effect from TKMS? And doe the minister agree with Dr John White, who says that there is enough time for such a competitive study?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

There are a number of people who say a lot of different things. I am listening to people who are experienced in complex defence capability acquisition. The CEO of the DMO, Warren King, has given evidence to the Economics References Committee, and Rear Admiral Sammut has given evidence as to how time critical the situation is now. TKMS is a very successful submarine designer, builder and exporter—probably the world's largest. The biggest submarine they build is just over 2,000 submerged tons. The fact of the matter is that we need almost double that size. There is a problem with promises made out there in the ether, where there is no accountability.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer to the 2013 tender of some $460,000 awarded to Macroeconomics.Com.Au Pty Ltd on the economic impact of building submarines here in Australia, which was due on 11 June 2014, according to the tender documents. Will the minister immediately release any reports, including draft reports, as a result of this tender?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I am not familiar with that report.

Senator Xenophon interjecting—

Yes, that is right, and I think you will find that it is a report—

Stephen Parry (President) Share this | Link to this | Hansard source

Minister, Senator Xenophon: to the chair, thank you. You have asked your question, Senator Xenophon. Minister—to the chair.

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

To the extent that I can assist the Senator, I will make inquiries for him, and I will come back to him regarding the proprieties and probity around that particular report, given that it was I think tendered for and conducted by the previous government. I will say to you, as I have already said, that this very complex program—and we will at some stage talk about the dollars that were involved, particularly in out-turn terms—is one that this government is very focused on. But we have a long way to go on so many of these fronts, because nothing has been done.