Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is for the Minister representing the Minister for Defence, Senator Brandis, and it relates to the government's welcome announcement in Adelaide last month that it intended to spend $89 billion on future frigates, offshore patrol boats and future submarines and this would be 'centred on Adelaide'. On 20 August, the Adelaide Advertiser reported that the Defence Teaming Centre of SA had predicted that, based on the limited information released by the government, as little as $8 billion of the spend for surface ships could go to South Australia and, if the government decided to build the future submarines offshore, which has not been ruled out, as little as $19 billion of the total $89 billion announcement could be spent in South Australia. Could the minister please advise how much of the total $89 billion spend, which the government said would be 'centred on Adelaide', will be spent in South Australia and provide a breakdown of how many of each vessel will be built and what the cost of each of the projects will be?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Senator Xenophon, thank you for that question and thank you for your customary courtesy in giving me advance notice of the question. Senator, I have examined the Defence Teaming Centre's remarks, reported, as you say, in the Adelaide Advertiser on 20 August, and I can tell you that the claims made by the Defence Teaming Centre are quite wrong and the government entirely rejects those claims.

Senator Xenophon, as you say, last August—on 4 August, in fact; last month—the Prime Minister, the defence minister, Mr Pyne, the senior South Australian minister and the Chief of Navy, Vice Admiral Barrett, made a historic announcement in Adelaide about the future of naval shipbuilding in Australia. The aggregate of the corvettes or offshore patrol vessels, the future frigates and the submarines is, as you say, some $89 billion. During the course of that announcement, the Prime Minister, speaking of the offshore patrol vessels and the future frigates, indicated that, between those two projects, some $40 billion would be spent substantially onshore, substantially in Adelaide. So the claims made by the Defence Teaming Centre are entirely wrong.

As you would also be aware, Senator Xenophon, one of the other aspects of that decision, which is also very good news for people in your state, is that the offshore patrol vessel build was being brought forward to 2018 and the future frigates build, which will take place in Adelaide, has been brought forward to 2020. So, Senator Xenophon, there is a bright, bright future for naval shipbuilding in Adelaide as a result of the announcements to which you have referred.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Could the minister provide details on notice regarding that specific breakdown that I requested? Also, in respect of the Prime Minister's remarks in question time on 20 August, that the comments of the Defence Teaming Centre were misleading, the Prime Minister said:

Almost $40 billion will be spent on a fleet build centred in Adelaide on acquisition. It is not on acquisition and sustainment; it is on acquisition.

Can the minister please clarify the statement—that is, how much of the $89 billion spend is for construction and acquisition? How much is for sustainment in each of the three projects? (Time expired)

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I might take some of that question on notice because I want to consult what the Prime Minister actually said in the House of Representatives, but I am able to tell you that, in relation to the offshore patrol vessels and in relation to the future frigates—the figures that the Prime Minister was quoting in relation to those two categories of vessel—the Prime Minister was speaking of acquisition cost alone, not sustainment.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. The defence minister, in an opinion piece on 21 August in The Advertiser, accused the Defence Teaming Centre of 'undermining the certainty that defence industry in South Australia is looking for'. Would the minister concede that the government has released very limited information to date about the frigate build and how much of it would be centred on Adelaide? Given South Australia's unemployment rate is still the highest in the nation, does he understand the need for greater certainty in terms of how much will be spent, when and on what projects?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Senator Xenophon, I acknowledge the point that you make. But we have been very clear that the future frigate build will be in Adelaide. Within the $89 million figure, of course, the largest single component is the Future Submarine Program. As you aware, that is the subject of a competitive evaluation process.

One thing about which there has been no doubt—notwithstanding the enthusiasm of Labor Party politicians to tell lies about this—is that our international partner, whichever of the bidders is selected after the competitive evaluation process, will partner with an Australian-based company. There will be a Defence white paper published in coming months. The more particular figures which you seek and the more particular breakdown which you seek will be found in the Defence white paper. (Time expired)