Senate debates

Wednesday, 24 June 2015

Questions without Notice

Defence Procurement

2:00 pm

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

My question is to Senator Brandis, the Minister representing the Minister for Defence. I draw the minister's attention to the report in the Newcastle Herald that 160 more workers at Forgacs' Tomago shipyard will be laid off in July due to the lack of work. The report goes on to say:

… the rest of the jobs will be phased out by year's end unless there’s a dramatic change in Commonwealth shipbuilding policy.

Minister, after two years of doing nothing, when will the Abbott government end its inaction that has caused hundreds of highly skilled Australian ship workers to lose their jobs?

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Senator Carr, I am delighted to be able to tell you that there has been a dramatic change in the policy of the Australian government. That dramatic change in the policy of the Australian government occurred in September 2013, when the Australian government changed and a government was elected that was committed to restoring the Australian shipbuilding industry—because, Senator Carr, as you should know, during the six years of the Labor government, for most of which you were the minister for industry in this country, not one single warship was commenced at any Australian shipyard. Not one. Not only was not one ship commenced at any Australian shipyard for the six years that you were the minister for industry—

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

Why don't you like Australian ship workers?

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

You said 'ship'; your line is 'warship'.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

but, Senator Carr—

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order, on my left!

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

Your line is 'warship'.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

I am trying to make myself heard over the screaming and screeching of Senator Penny Wong here.

Opposition senators interjecting

Senator Carr, not only was not one warship commenced in the six years of the Labor government but the air warfare destroyer project, which had been begun by the Howard government, fell into abeyance with cost blow-outs and production delays, so that it was left to the Abbott government to complete and bring home the air warfare destroyer project and, as we will announce in coming months, the future Australian submarine. Now, Senator Carr, how you can complain, when for six years the Australian shipbuilding industry fell into the 'valley of death' during your custodianship of the portfolio of industry, is beyond me.

2:02 pm

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

Mr President, I ask a supplementary question. I remind the minister that the latest lay-offs come on top of the 450 jobs that have already been lost at Forgacs on the Abbott government's watch, making a total of 610 jobs lost at this shipyard alone. This is in a period when you have decided as a government to send two ships offshore. And this is in addition to the 120 jobs lost at ASC in Adelaide and 100 more at BAE in Williamstown— (Time expired)

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

As the time for asking the question expired, Senator Brandis, there was no question there, but I will allow you to address the question in any way you wish to.

2:03 pm

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

I will take it as a comment, but I will respond, Senator Carr. Senator Carr, you are speaking about a shipbuilding enterprise in Newcastle. Let me tell you what the Newcastle Herald has reported:

Newcastle Trades Hall Council secretary Daniel Wallace said unions and shipbuilding firms had been warning about the "Valley of Death" since Labor was in power.

So the 'valley of death', Senator Carr—this phrase that has been around the Australian shipbuilding industry for some time, by the way—is a phrase that comes from the trade union movement complaining about the 'valley of death' into which you sent the Australian shipbuilding industry during the Rudd, Gillard and Rudd governments, when you served as minister for industry. The shipbuilding industry had a near-death experience under you, Senator Carr, and it is being revived by the Abbott government.

2:04 pm

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

Mr President, I ask a further supplementary question. I ask the minister to explain why the government has sent two ships offshore, with this crisis facing the ship industry; and when will the government sit down with shipbuilders and bring work forward to avoid these job losses?

2:05 pm

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Senator Carr, why did the Labor government commence no ships, warships, at any Australian shipyard in the entire six years you were in power? Not one, Senator Carr. Not one ship, warship, commenced in the six years when you were in power—not one. Meanwhile, nothing was done to progress the Australian submarine—not a thing. That fell into abeyance while Defence expenditure fell to the lowest level—

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Pause the clock.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

as a proportion of GDP

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order, Minister!

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

since 1938—

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order, Minister!

Photo of Claire MooreClaire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | | Hansard source

Mr President, I rise on a point of order on direct relevance to the question asked by Senator Carr, which was: when will the minister sit down with the shipbuilders and bring work forward? That was the quite neat question.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Thank you, Senator Moore. I remind the minister of the question. He has 24 seconds remaining in which to answer.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Thank you for reminding me, Mr President, because that is precisely what we have done—and I will tell you when we began, Senator Carr. We began with the contractors for the air warfare destroyer project, which fell behind because of cost overruns and construction delays during the six years of the Labor government, when the shipbuilding industry went into the 'valley of death'. (Time expired)