Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answer given by the Attorney-General (Senator Brandis) to a question without notice asked by Senator Carr today relating to jobs in the ship building industry.

Could I pose a simple question: has this government actually come to terms with its responsibilities as a government? Because every possible explanation we get from this government—and it is demonstrated in the answer we heard today—is that they are still acting as an opposition. They do not take responsibilities as a government. After two years in power, the Abbott government has failed to ensure that there is any meaningful work for Australia's shipbuilding industry and its workers. Yet they still act as if they were in opposition by suggesting that this is a problem that, of course, is the responsibility of the opposition! We know the reality is somewhat different.

In 2013, the previous Labor government, in its bid to maintain the shipbuilding capacity of this nation, create the jobs and maximise the value for our Defence acquisitions, proposed a series of measures to actually bring forward work for shipbuilding in this country.

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

You just didn't tell anyone!

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Yes, we did. And, after the election, it was the Abbott government that abandoned that plan, and the result has been a decimation of the Australian shipbuilding industry under this government's watch. Overnight we have learned that another 160 jobs will be lost. These are highly skilled jobs. That is 160 jobs lost for skilled construction workers at Forgacs in Tomago. That is on top of the 450 jobs that have already been lost at Forgacs under the Abbott government, and the reports have indicated that the remaining 290 positions at Forgacs are earmarked to go by Christmas unless this government actually gets into gear and does something—takes up its responsibilities—to ensure that we have sufficient work in our shipyards.

With no work, there is no certainty. The impact of that will see the incompetence of this government demonstrated by seeing large numbers of Australian workers thrown on the scrap heap. These are highly skilled men and women. They are irreplaceable. And if it is the case in the future that we do need to rebuild the capacity in Australian shipbuilding, it will be incredibly difficult and incredibly expensive to try to replace them. The jobs of 610 workers have been lost at Forgacs in Newcastle. There have been 120 lost at ASC in Adelaide. Hundreds were lost at Williamstown. And there are hundreds more to go.

The government, in two years in power, has failed to fulfil its responsibilities and failed to live up to expectations of what it said before the election but, above all, failed to acknowledge that it has a responsibility to act. This is a government that has seen thousands more ship workers' jobs at risk because of the failure of this government to acknowledge those responsibilities. What this government needs to do is to sit down with the shipbuilding companies and with the unions and be able to work through a realistic plan to bring work forward to make sure that these yards stay open, because closing these yards will have a profound long-term consequence for the industrial capacity of this country.

Under Labor's 2013 plan, we proposed that, at a minimum, one of the two supply ships for the Navy be constructed in 2015-16 and that it be, as a minimum, a hybrid build—built part overseas and part in Australia—but that the other be built in Australia, and that we would also bring forward the Armidale Class Patrol Boat replacement with local construction. And only Labor has committed to building and maintaining 12 future submarines in Australia. That is unlike the dodgy deal that this government has already done with the Japanese, where we are in the business of building a shipyard in Japan while closing shipyards in Australia. Let us see how this government explains that at the forthcoming electoral contest. Let us see how they explain why it is they are proceeding to export Australian jobs and skills and destroy our defence capabilities—as we know from the former audit commissioner Tony Shepherd, who made it clear. Surely we have learnt something from experiences in war in this country. And we have seen from the former defence minister's claim that we could not build a canoe in this country how wrong that attitude is. We should, according to Mr Shepherd, have confidence in Australian shipbuilding. (Time expired)

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Senator Carr is just a gift that keeps on giving! It is just absolutely fantastic! Hypocrisy has been writ large here this afternoon.

It has been said that Labor did not commission the construction of any naval vessels during their time in government. Well, that is not quite right. They did in fact commission the construction of 12 landing craft. But do you know where the 12 landing craft contract went to? Navantia, in Spain. Not a little island off the coast of Melbourne, but Spain—that is where Labor's only contribution went.

We heard from Senator Carr this afternoon that, regrettably, there have been staff put off or who will be put off from the Forgags project and also BAE's.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Forgacs!

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Thank you, Senator Cameron; I will defer to you on that. The reason, of course, was that BAE and the other company did not tender—they did not tender on the Pacific Patrol Boat Program.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

The tender arrangements were impractical—totally impractical!

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

But let me give you further and good information, since you obviously do not know it, Senator Carr. It was the coalition government that brought forward the Pacific patrol boat tender. It closed last Wednesday at 2 pm. And what was the Labor Party's only other commitment to the naval industry with regard to fleet size while they were in government? It was the purchase from the United Kingdom of what became the HMAS Choules, on which I had the pleasure of being, in Fremantle harbour, when it was named and commissioned.

As to the decisions by these companies to reduce their workforce, were they anything to do with the coalition government? Not on your nelly! It was, in fact, as Attorney-General Brandis told us, the trades hall secretary Mr Daniel Wallace who said that the unions and shipbuilding firms had been warning the Labor government since they were in power in 2010-11, and it was Defence—if only the then minister had bothered to listen—under the Labor government that had advised the government, back in 2011 or earlier, that they must commence construction of new naval ships or indeed they would lose the contract.

This afternoon I heard Senator McEwen in her senator's statement talking at some length about the pride with which everyone was associated the other day when the Hobart was launched. Well, as Senator Gallacher and Senator Carr and Senator Conroy would know, and as I am sure Senator Cameron should know, that project, the Air Warfare Destroyer project, was commissioned under the Howard government by the then defence minister, the proud South Australian, Robert Hill. Robert Hill signed the contracts and funded the project, and he has seen the benefit of the first of those vessels having been launched the other day.

Senator McEwen was talking about the apprehension of everybody around what the future might be. I wonder whether Senator McEwen might have gone and explained to those people why there needed to be any apprehension at all. The simple reason was that Labor went to sleep at the wheel during its time in government. Not only did they not commission one warship to be constructed in this country, but they took billions of dollars out of the Defence budget when Mr Stephen Smith was the Defence minister. We see a circumstance this afternoon where, regrettably, the Labor Party—amnesia writ large—did nothing when they were in government. Now the coalition is getting on with the job, only to be vilified by the very people who know deep down—and this includes the Leader of the Opposition in the Senate, Senator Wong, a South Australian—that they did nothing.

To answer Senator Carr's question: what has the coalition done? We are there supporting the naval shipbuilding industry. In June of last year, 12 months ago now, we brought forward the $78 million for the design work to retain the option of the future frigates. In December 2014, we announced that we were working with industry to fix the AWD program, a program that needed fixing because Labor did nothing during their time in government. That will create the industry around the fleet of future frigates. They need not go to Spain. They can be built here because of the excellence of this government. In February, the Defence minister announced the competitive evaluation process for the construction of our Future Submarine program. We stand proud. (Time expired)

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Senator Back said that there was a gift that kept giving. That is Senator Back. To suddenly become an expert on shipbuilding when he cannot even understand or say the name of the shipyard where workers are losing their jobs is an absolute joke.

Government Senators:

Government senators interjecting—

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Order!

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

They have sent in here the Western Australian senator who would not even know where Newcastle is and would not care about the jobs in Newcastle.

Senator Back interjecting—

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Senator Back, leave the chamber.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

They do not care about high-skilled jobs in this country. They never have and they never will. Look at the pomposity and arrogance from this government. They are not concerned about what happens to high-skilled jobs in this country. Four thousand high-skilled jobs in the shipbuilding industry will go down the tube because of the incompetence and uncaring view of this government.

It is not only skilled jobs in the shipbuilding industry. Look at Toyota and Holden. They chased them out of this country. They told them to pack up and go away. The University of Adelaide has estimated that closing the motor vehicle industry will mean 200,000 job losses in this country. It will mean the loss of 98,500 jobs in Victoria and 24,000 jobs in South Australia alone. Forgacs, that shipbuilding company in Newcastle, will now be reduced to zero jobs by Christmas this year.

You have to look at what this government is all about. They want to send the jobs overseas. The submarines will be sent to Japan. We all know that a deal has been done to send the jobs to Japan. We all know that the senators from South Australia in here were absolutely mute about that issue for weeks. They did not have the backbone to stand up for jobs in their own backyard. From what I hear, the coalition members in the Newcastle and Hunter region are equally as mute, equally as jelly backed and equally as weak kneed as those MPs and senators down in South Australia.

What has this government got against high-skilled jobs that allow Australian workers and Australian tradespeople to access the middle class of this country? Why are they determined to hollow out the middle class of this country? Why are they determined to send jobs to China? Why are they determined to send jobs to Japan? Why are they determined to send jobs to Korea, when we should be building the ships and building a manufacturing base in this country?

This coalition are not to be trusted. They said they would build 12 submarines in South Australia and they have reneged on that deal. They are sending those submarines to Japan; we know that full well. They have misrepresented their position. They have lied to the Australian public. They should be held to account for that.

At the moment, we are seeing this hollowing out of manufacturing jobs. They come here and they say, 'We've got these great trade agreements.' We heard the spin being put on the China-Australia Free Trade Agreement by the acting minister here just after question time. But that free trade agreement means that there will be a movement of skilled workers from China to Australia at a time when shipyard workers and vehicle workers are losing their jobs. This is economic madness.

This is a mob who wrap themselves in the Australian flag every chance they get. But when it comes to doing something about maintaining jobs so that we have got the independence to build our Defence acquisitions in this country, they run away from it. They do not wrap themselves in the flag. They send the jobs to Japan. They send the jobs to China. They do not stand up for this country. They are an absolute disgrace. They are untrustworthy and they should be thrown out at the earliest chance we can get to do it. (Time expired)

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

It is always a pleasure to be in the chamber when Senator Cameron makes a contribution. He often reminds me of those big storms out west. They start with a lot of promise and a big build-up of dark clouds and they end up just being wind. They have no ideas, no reflection on why the shipbuilding industry finds itself in this position—nothing, just empty wind. There is a further term, but the standing orders apparently prevent me from finishing the sentence.

Let us open with this question: in the six years Labor was in government, how many naval vessels did you commission? Just run it out—naval vessels. The answer would be none. I have not heard the opposition, in their contributions, making reference to why some of these companies find themselves in this position. If you do not want to listen to our contribution, let us go back to the Newcastle Trades Hall Council secretary, Daniel Wallace—I am assuming that you are in concert with Mr Wallace in relation to his observations. He said that the unions and shipbuilding firms had been warning about the valley of death since Labor was in power. The valley of death they made reference to was the—

Honourable Senators:

Honourable senators interjecting—

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Senator O'Sullivan, resume your seat. There are too many interjections in the Senate, and they are too loud.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

I am finding it hard to function.

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

That won't change if we shut up!

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

Give it a try. What we have here is a commercial decision by VAE, and they are entitled to do that. I understand a little about commerce, but their decision has to do with six years under the Labor government when there was shipbuilding inaction—that is the term to be used—and, again, going back to Wallace and the valley of death.

This government is committed to supporting a productive and cost-effective naval shipbuilding industry in this country. We are prepared to invest in the skills and knowledge base of the Australian naval shipbuilding industry. We are prepared to commit to a long-term investment to ensure the industry enjoys a future in Australia—and these things take time. The absolute only explanation Labor could give for their inaction for six years was 'preparation for an industry'. Of course, that was not happening. It takes time for these matters to go through. We will lay out a clear, fully funded plan for a strong and secure Australia in this space.

Joel Fitzgibbon did nothing for shipbuilding in this country when he was the defence minister and he certainly did nothing to send more work down the pipeline for Australian shipbuilders, including those in Newcastle. I will mention here, Senator Conroy, so sit quietly: during the six years of Labor, where were you; where was Daniel Andrews; and where was Jay Weatherill? Why didn't they lobby their federal colleagues at the point when, as they were advised by Defence, critical decisions needed to be made?

Here we are now with a board full of revisionists wanting to visit on why these difficulties exist in the shipbuilding industry and accepting no responsibility whatsoever. We know why nothing was happening in this space: because Labor were too busy dismantling the great economic situation they were left with after the John Howard government. They even acknowledged the need for urgent decisions to be made in the 2009 and 2013 Defence white papers that they published but they did nothing. By making no decisions, Labor willingly put shipbuilding jobs at risk. Such is their disregard for proper processes that, under Labor, the 2012 and 2013 Defence capability plans were never even considered or approved by the National Security Committee.

There will be more contributions here. I imagine Senator Conroy will be next. It will be interesting for him to lay down why all this inaction occurred in the six years under Labor, whilst our economy was being dismantled and put in its weakest position in the history of this place. They should accept personal responsibility for the fact that these jobs are now under threat. Had they been active during their period in the term, we would have had, and would continue to have, a vibrant shipbuilding industry in this nation.

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

Firstly, I want to put on the record that Labor's first thoughts are with the affected workers and their families who are dealing with this news at an extremely difficult time. That is the difference between this side of the chamber and that side of the chamber. They have been in government since 2013 and the ordinary performances from Senator Brandis, Senator Back and Senator O'Sullivan is simply to reiterate the six years prior to that.

You have had two years to make decisions. I am sure it is of no comfort to a worker sitting down with his family and his kids to have you throwing across the chamber that two years ago someone else should have done something. The reality is that you have had two years of government. You won government. You had a defence minister and you had him white-anted. You have had your defence department white-anted. You have had the economic rationalists take over, saying, 'We will just not build anything here. Let's go and get a Japanese submarine and put all of those workers in South Australia, all of those workers at Williamstown, Forgacs, under the pump. Push them down.'

We actually care about workers, their families, their jobs and their futures—unlike anybody on that side, from what I have seen in their contributions today. I do not think any of those families are going to get any comfort out of this debate when you simply say, 'Someone should have done something six years ago.' You won government and, in the two years since then, all you have done is dismantle. You have dismantled a whole viable well-trained blue-collar workforce. Go back to Senate estimates where Defence Secretary Richardson said there wasn't a problem in the blue-collar workforce. He said there are no issues there—the issues are in that tier of management. He did not say it was political. He said, 'I don't detect any less inclination to pay a premium for building in Australia'—very careful, diplomatic words—but there is. This is clearly what has happened here. You have got in, you have had a look at it, and you have said, 'We'll let this go the same way as Holden; we'll let this go the same way as manufacturing in this country.' You do not care about workers or their families. You will take no proactive steps in respect of maintaining good, skilled jobs and conditions. And there have been opportunities for you to do something different.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

We are doing things.

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

What it looks like you are doing, as Senator Carr has said, is transferring the whole future of submarine building to another country. You are avoiding the opportunity to set up in South Australia for a long, long time a decent, well-paid industry. And Forgacs is another example. You figure that you can hide that away in the economy of New South Wales. You think you can just slip out of that space and let those manufacturing jobs go.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

Six years!

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

The response is repeatedly that 'someone should have done something six years ago'. Well, you had an opportunity. Labor had the 2013 Future Submarine Industry Skills Plan and a plan for naval shipbuilding. It was designed to maintain industry capacity, create jobs and maximise the value for Defence acquisitions. It appears as though this government is going completely in the other direction: 'Let's invest overseas, let's take hard-earned taxpayers' dollars and invest in Japanese shipbuilding or submarine capability.' That is totally contrary to the best interests of this country. From a strategic defence point of view and from an economic perspective it is totally contrary to the national interest. And they stand here in this debate and say to workers who are facing redundancy, unemployment and relocation—all of the problems when workers lose their jobs—that it was 'someone else's fault'. They say, 'Don't blame a government that has been in power for two years, blame someone else who six years ago should have made a different decision.' I do not think workers will take any comfort from that. (Time expired)

Question agreed to.