Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Johnston. Can the minister confirm that the Prime Minister met with the French President during his recent trip to Australia and discussed Australia's future submarine project? And can the minister also confirm that the Prime Minister told the French President that Australia's future submarines would be built by Japan?

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

I thank Senator Gallacher for his question. I was not with the Prime Minister and the President all the time. However, DCNS, a naval architect and constructor established in 1631 in France, is a very capable builder of submarines. Indeed, they build a 14,000-tonne submarine—

Senator Conroy interjecting—

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

Senator Conroy!

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

and they build a number of diesel electric submarines, predominantly exported into our region, into India and Malaysia. French sonars are par excellence. Accordingly, it would be very surprising if my Prime Minister having Thales, one of our biggest defence exporters of sonar components, from Rydalmere in Sydney, if they did not discuss submarines and submarine construction. The point is, we have another of our companies here which have a connection with France—

Opposition senators interjecting—

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

Order! Senator Conroy! Pause the clock. Minister.

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

So it would be very logical and proper if the Prime Minister, in discussing maritime and French-Australian relations, was to discuss submarine sonars and the very fact that we had a submarine program to be unfolded in Australia in the next several years. I am sure he would also have said, 'We're cleaning up one hell of a mess left to us by the Labor Party.' They talk about the ABC cuts—4.5 per cent over five years. They took 10 per cent out of the defence budget in one year. (Time expired)

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer the minister to a report in the Saturday paper that during a meeting between the Prime Minister, the US President and the Japanese Prime Minister at the recent East Asia Summit, it was agreed, 'Japan and the US would help Australia with its new submarines—that is, by fitting US combat systems to Japan's Sorya class submarines.' Is the minister aware of this commitment?

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

It may be surprising to know that I was not there. So while I know that you would be fascinated to know what the discussion was between the President of the United States, the Prime Minister of Japan and the Prime Minister of Australia, it was a private discussion and I am sure to canvassed many important regional security issues. I cannot help you, Senator, because I was not there. Indeed, if you had read the article property and done any homework at all, you would have known I was not there and could not give you an appropriate answer.

Mr President, as I was saying, concerning the confected outrage of this side on defence projects, they took 10 per cent of the defence budget in one year. The cuts to the ABC are 4.5 per cent over five years. They took to per cent of the defence budget in one year—a disgrace. (Time expired)

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister explain exactly who is running a Australia's biggest-ever defence procurement program—staff in the Prime Minister's office or the Minister for Defence? Is it not time the minister took control of his portfolio and announced a competitive tender so that all Australians can be confident we are getting the best submarine at the best price?

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

We are running this program, but if you are concerned it is taking some time, let me tell you in your shadow minister's own words why it is taking time. He told the submarine institute recently something I would like to highlight: '… significant work done on the project by Labor. We put $214 million on the table'. Of that $214 million put on the table in 2009, only $60 million as been spent. Oh dear! He then went on to say, 'We ruled out a MOTS.' They simply suspended the MOTS. These were the words used. If you want to talk about running a program for six years, you guys looked busy with lots of words and to did nothing—not a contract, not even an obligation to South Australia. (Time expired)