Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Johnston. I refer the minister to his disgraceful statement yesterday that he would not trust ASC workers to build a canoe. I refer to the Defence Procurement Policy Manual, which notes bias as a major risk factor for any ethical or probity breach in a tender process. Given the minister's clear bias against the ASC, is there any way that he could be involved in a fair process for selecting Australia's submarines that is consistent with defence procurement policy?

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

Clearly, Senator, you do not understand the first- and second-pass acquisition process. Indeed, may I take you to your very own acquisition for HMAS Choules. There was no competitive process. There was no first or second pass. There was simply a cheque for $100 million. And Senator, your ignorance really does astound me, because if you knew about high-end acquisitions you would know that the second- and first-pass process is one that is conducted, particularly for these sorts of acquisitions, very transparently and very carefully. At the end of the day I can only say to you that your reference to bias is completely and utterly ignorant and irrelevant.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I draw the minister's attention to the Defence Procurement Policy Manual, which says that proper procurement involves the appropriate management of conflicts of interest and making decisions without being influenced by personal bias. Given the minister's clear personal bias against ASC and the Australian defence industries, how can he possibly make a proper procurement decision on the future submarines project?

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

Perhaps I can just say that the process will be, as I have said on several occasions, open and transparent. And, for your information, Senator, I actually do not make the decision. The project is so large that it will go the National Security Committee of cabinet. The government will make the decision and everybody will understand that the process for this really important strategic capability will be done properly in a timely manner that provides Navy with the best possible capability at the best possible price.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Hasn't the minister made his position as minister responsible for the future submarine procurement project untenable?

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

No.