Nova Peris (NT, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Johnston. I refer to the Prime Minister telling the RSL National Conference in 2012:

A "fair go" is the least a grateful nation can offer to serving and former military personnel.

How is the government's decision to cut the real pay and conditions of ADF service men and women, including Christmas leave entitlements, in any way fair?

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

The new Australian Defence Force pay arrangements in no way reflect the value that the government places on ADF personnel and the vital and good work that they do. The pay decision is entirely the product of the economic legacy that has been bequeathed to us by the most profligate and incompetent government in our history. We are desperate to do the right thing in terms of national security—

Honourable Senators:

Honourable senators interjecting—

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

Pause the clock. Ministers and leader—order!

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

We are desperate to do the right thing by our country in terms of national security and by our Defence Force members. But we must find $1 billion every month to pay the interest on the borrowings that were left to us by the previous government. It is simply not feasible for us to borrow even more for higher wages for directly employed Commonwealth public servants or Defence personnel. No responsible government would do that. We are a responsible government. That is the sort of thing that they did.

Labor turned more than $50 billion in the bank into a projected net debt well over $200 billion—the fastest deterioration in our debt position in dollar terms as a share of GDP in Australia's modern history. When you are in a situation of a $50 billion deficit you cannot be as generous as you would want to be. This is the reality.

Opposition senators interjecting—

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

Pause the clock. Order!

Senator Cameron interjecting—

Senator Cameron!

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

Obviously the senator does not know that Labor approved two years in a row of below-inflation wage increases to ADF personnel. (Time expired)

Nova Peris (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I again refer to the Prime Minister's speech to the RSL National Conference, where he also said that savings 'should not come at the expense of Defence personnel'. Why are our ADF personnel being forced to pay the price for yet another Abbott government broken promise?

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

The simple answer is that when we assumed government we found that the situation was ever much worse than they had suggested. The shipbuilding program in South Australia was several hundred million dollars over budget—

Opposition Senators:

Opposition senators interjecting—

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

Pause the clock.

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

without a word of acknowledgement or contrition. This is what we inherited. Can I say that of course the $16 billion that was ripped from the Defence portfolio was relevant to a whole host of areas. Not the least was force protection. There are 42 programs that had to be deferred by Defence. Many of those were relevant to our men and women on the front line. Labor was prepared to take money out—

Opposition senators interjecting—

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

Order! Minister, you have four seconds. Have you concluded your answer?

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

I have concluded my answer.

Nova Peris (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a final supplementary question. When will the Minister for Defence stand up for our Australian Defence Force members and ask the Prime Minister to consider this disgraceful, unfair pay deal?

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

Where were Labor senators when $16 billion was taken out of this portfolio? Where were Labor senators when no submarine project was forthcoming? Where were Labor senators when the air warfare destroyer build program was several hundred million dollars over budget and two years late?

We want to and will support Australian Defence personnel, but we are cleaning up an enormous mess in this portfolio. We have taken Defence's share of the budget, in GDP terms, from 1.56 per cent—it was last there in 1938—to 1.8 per cent of GDP in just one budget. This is a good thing for ADF personnel.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.