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 Finance. I refer to the claim by Senator Edwards that the submarine builder ASC will now be allowed to bid for Australia's new submarine contract, telling TheAdvertiser:

I'm very pleased with the decision of the Prime Minister … it now commits the Government to a full and open tender …

Was the finance minister consulted about this decision or was it another captain's pick? Can the finance minister confirm whether the Treasurer was consulted given that he said last year:

… we have run out of time … and we need to make decisions now.

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

Nothing inconsistent.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

'Nothing inconsistent,' says Abetz.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Minister Abetz is exactly right. The position of the government has not changed and we remain committed—

Senator Wong interjecting—

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

Order, Senator Wong!

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The government, as we always have been, are committed to purchasing the best possible submarines at the best possible price to maximise on the national security benefit for Australia. In doing so, we have always said that we would pursue defence policy outcomes in the first instance and that we would be seeking to achieve value for money. What the Prime Minister has explained to colleagues, and what has been made public in recent days, is that we are committed in that context to go through a proper process which includes a competitive evaluation process. That is all that has been said. Now, this is—

Honourable senators interjecting—

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

Order on my left!

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

So, to the question by Senator Conroy on whether I am aware of government policy, of course I am aware of government policy. I have been involved in government processes every step of the way, and right now no decision has been made in relation to the procurement of submarines. We are committed to ensuring that we get the possible defence outcomes, the best possible national security outcomes, in the national interest. We are going through a proper process, and, as the Prime Minister indicated in an interview yesterday with Chris Uhlmann, we are committed to a competitive evaluation of the various options on the table.

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 again refer to Senator Edwards, who boasted to the ABC this morning:

I've been able to extract a commitment from government.

Minister, is it an open tender, as Senator Edwards has claimed, or not?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Let me say right up-front that Senator Edwards is a fine senator for the great state of South Australia. Let me say that Senator Edwards, Senator Fawcett, Senator Bernardi, Senator Birmingham and Senator Ruston—all of the Liberal senators representing the great state of South Australia—are doing an outstanding job standing up for the best interests of the people of South Australia and the economic interests of the great state of South Australia.

In relation to the procurement of submarines, I do not really believe that there is anything else I can add to my previous answer, which was very comprehensive. The answer is that we are committed to purchasing the best possible submarines at the best possible price. We are going through a proper process and that process will include a competitive evaluation of all of the options on the table. That is the position of the government. (Time expired)

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. Given that expert after expert has confirmed that Australia's shipyards are capable of building submarines that meet our strategic requirements in a time frame that ensures no capability gap while providing value for money for taxpayers, why has it taken until the Prime Minister's job is threatened before he puts the national interest first? Given the Prime Minister's broken promises and desperation to have these subs built in Japan, why should he be believed now? (Time expired)

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I do believe that that question goes somewhat beyond my area of portfolio responsibility. However, let me assist Senator Conroy. As I have indicated, the government has not yet made a decision in relation to the procurement of submarines. The government is committed to getting the best possible submarines at the best possible price in order to get the best possible defence outcome, the best possible national security outcome. Of course, in doing so, we are following proper process, and that proper process will involve a competitive evaluation of the various options available to the government.

This is not a procurement of some paper, this is not a procurement of some food or drinks; this is a procurement of some significant defence infrastructure, and we will be going through the proper process and it will be done in a competitive evaluation way.