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

My question is to Senator Brandis, the acting Minister for Defence. I refer the acting minister to the strategic situation to our north. Since 2009, we have seen a North Korean submarine sink a South Korean navy ship, Japan and China have faced off over disputed islands, China has declared an air defence identification zone over the East China Sea and China has had a naval stand-off with Vietnam over oil-drilling rights; there is an ongoing impending tension between China and the United States over land reclamation in the South China Sea. It appears from AUSMIN talks this week in the United States that we may need to increase our naval patrols in the region. Does the minister agree that the strategic situation to our north is worsening or, at the very least, tense?

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

Thank you very much indeed, Senator Xenophon, the issues you raise are very important issues indeed. Our region, the Indo-Pacific has, as you know, Senator, enjoyed a long period of peace and security—over 70 years in fact—underpinned by the strong stabilising presence of the United States, which has enabled an unprecedented pace of economic growth and opportunity.

Looking out over the period to 2035, it is fair to acknowledge that we will face a more uncertain regional and global security environment. That is why Australia strongly supports the United States' continued presence in the Indo-Pacific and its rebalance of forces to our region. Senator Xenophon, you referred to the AUSMIN talks, which Senator Payne and Ms Bishop have attended this week in Washington with their American counterparts. Those issues were underlined in the communique of the AUSMIN talks, which I have with me and to which I would invite your attention.

We are also seeing power relationships in the Indo-Pacific become more complex as global strategic weight continues to shift to the region. By 2050, almost half of the world's economic output is expected to come from the Indo-Pacific. We also recognise that there is growing complexity in the region. The roles of the United States and China, as well as the relationship between them, will continue to be particularly important factors in the dynamics of the region. Australia is committed to working with our American ally and other regional nations to ensure stability. Australia's development of a new defence white paper demonstrates our own commitment to transparency in strategic and capability planning. The white paper will set out the government's vision for Australia's security over the next 20 years, taking into account our strategic circumstances, including considerations of the kind to which you have referred in your question.

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

Mr President, I ask a supplementary question. At a Senate Economics References Committee hearing in Adelaide on 22 July this year, French submarine maker DCNS provided testimony that there is a certain number of submarines sought in the competitive evaluation process documentation to be used for providing pricing to government. Can the minister advise what that planning number is?

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

Senator Xenophon, that strictly was not necessarily a supplementary question to the primary question, but I will allow the minister to answer what part he wishes.

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

Senator Xenophon, the number of future submarines is to be determined through the defence white paper process. I am unable to predetermine the outcome of that process. I should point out, however, that the primary reason for the competitive evaluation process is to identify an international partner for the next stage of the process.

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

Mr President, I ask a further supplementary question, and I hope this is strictly supplementary. Noting both the 2009 and 2011 defence white papers, documents borne out of defence department and other agencies' strategic analysis, if they determine that Australia needs to have 12 submarines, can the government confirm that, given the situation in this region, future submarine numbers will be at least 12?

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

Senator Xenophon, I am afraid I cannot really take the matter beyond my answer to your first supplementary question. The number of future submarines is to be determined through the defence white paper process. As I said before, I am not in a position to predetermine the outcome of that process.