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 Defence, Senator Payne. Prior to the last election, Senator Johnston promised to build 12 submarines in South Australia. Two and a half years later, today's defence white paper fails to deliver on that promise. Minister, is it the case that the government's competitive evaluation process leaves open the possibility of all 12 submarines being built offshore?

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I begin by saying to Senator Conroy: we missed you. The question that Senator Conroy asked is clearly grounded in his experience of having discussed these issues across the chamber with me before. He knows very well what the competitive evaluation process required of the international contributors. It required each international contributor from Japan, France and Germany respectively to provide to the government by 30 November a submission that canvassed a completely international build, what is known as a hybrid build and a completely domestic build. He knows that; yet he apparently chooses to ignore that competitive evaluation process. The government does not. The government is adhering to the competitive evaluation process.

That said, we have today announced in the 2016 Defence white paper that we will acquire 12 submarines for the Australian Navy. All those opposite can do, which is absolutely fascinating after they released an average white paper in 2009 and a completely unfunded white paper in 2013 and placed not one single solitary order for one single Navy vessel, is criticise the government's commitment to acquire 12 regionally superior submarines for Australia. Their record speaks for itself.

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 first acknowledge Senator Payne's generosity in allowing us an early copy of the white paper and also an invitation to its release, which I was unfortunately a little busy to go to. I also acknowledge her generosity in agreeing to reconvene Senate estimates sometime in the near future to go over it. I genuinely want to acknowledge that.

When he was Prime Minister, Mr Abbott repeatedly promised to build the first few offshore patrol vessels in South Australia. Again, 1,300 jobs were at risk. Why have you decided to walk away from Mr Abbott's promise to build the OPVs in Adelaide? (Time expired)

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

As I said, we did miss Senator Conroy, but I do understand the busyness of his role. The observation that I think it is important to make about the offshore patrol vessel competitive evaluation process is that it is underway. When the offshore patrol vessels and the future frigates were announced—they were brought forward on 4 August 2015, as I recall—it was made very clear in that announcement that the future frigates would be built in Adelaide and that the offshore patrol vessels competitive evaluation process did not specify location. We have been through this relentlessly in estimates and in extraordinary detail, specifically for the benefit of Senator Conroy. He apparently has chosen to ignore that.

Let me explore this little observation by one of Senator Conroy's colleagues. This was actually said on 4 August 2014. It was said, 'This naval shipbuilding contract— (Time expired)

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

In 2014 Senator Johnston announced a tender for Navy's two new supply ships would be sent offshore because there was an urgent need to forestall a capability gap. But 20 months later today's defence white paper contains no decision on this urgently required capability. Minister, will you confirm there is no future work outlined in the white paper that would prevent the closure of the Williamstown and Newcastle dockyards?

Marise Payne (NSW, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I apologise, Senator Conroy, but that sounded a little bit like a non sequitur to me. I am not sure that your observations in relation to Williamstown and Newcastle follow from your question in relation to the naval vessels. But let me be very clear: based on the unambiguous advice of the Department of Defence in June 2014, the coalition government did give first-pass approval for a limited tender between Navantia of Spain and Daewoo Shipbuilding and Marine Engineering of South Korea. That included a staged capability development process, a risk reduction design study to enable the development of the ship's specifications and so on. The problem was that, because no orders had been placed by the previous government for a naval vessel during their entire term, this gap to be filled urgently. (Time expired)