David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Payne. Will the minister update the Senate on the Turnbull government's plans to secure a long-term and sustainable naval shipbuilding industry and workforce in Australia? How will this benefit the broader Australian economy?

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

I thank Senator Fawcett very much for his question and his long-term interest in the question of naval shipbuilding in Australia and defence issues more generally. Today the Prime Minister and I have announced a number of very significant decisions that will secure a sustainable long-term Australian naval shipbuilding industry. The decisions announced today will provide for two shipyards to implement the government's commitment to a continuous build of naval surface ships in Australia. We have announced that the construction of the offshore patrol vessels will begin in Adelaide and Henderson in 2018 to bridge the gap between the end of the Air Warfare Destroyer Program and the start of the future frigates, which the government has indicated will commence in 2020. Austal has been selected as the preferred tenderer to construct up to 21 Pacific patrol boats and, subject to negotiations, will begin construction in early 2017 in Henderson.

The government has also announced the downselect or short list for the designs of both the offshore patrol vessels and the future frigates. The government's continuous naval shipbuilding strategy will ensure that Australia as a nation retains a sovereign capability to build and sustain its naval vessels, securing thousands of shipbuilding jobs for decades to come.

Senator Cameron and Senator Edwards interjecting—

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

Senator Cameron and Senator Edwards, it is very difficult for me to hear, let alone for the minister to speak, during these interjections across the chamber. Please desist. Senator Payne, you have the call.

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

A strong and sustainable shipbuilding industry will also create thousands more jobs through the breadth of the supply chain and give the industry the certainty to invest and innovate to develop the capability the Navy needs. Unlike those opposite who did nothing to order or commission a ship from an Australian shipyard in the entire time in which they were in government, this government is getting on with the job and getting the job done.

Honourable senators interjecting—

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

Order, on both sides.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Could the minister develop that last part of her answer to advise the Senate how this government's naval shipbuilding plans differ from previous approaches to this important industry and sovereign capability?

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

That is a very important supplementary question because, for too long, our naval shipbuilding projects have been developed in isolation, which has led to a process of peaks and troughs in demand. Each time there is a trough, industry has gone through a very painful decline. Workers have been let go, resulting in a loss of valuable skills and experience. This means that each time we start a new naval build we start cold. It takes time and money to rebuild that lost skills base. What this government's continuing shipbuilding strategy is determined to do is eliminate that boom-bust cycle that has afflicted the industry for far too long. It will need to draw on Defence, it will need to draw on state and federal governments, it will need to draw on industry and workers at educational institutions to train and skill our workforce, it will need to draw on research organisations to ensure that we have a strong, viable and sustainable sovereign capability to build and sustain our naval vessels for decades to come. (Time expired)

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister advise what the government's naval shipbuilding plans means for jobs and investment in my home state of South Australia.

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

In Williamstown! Why don’t you tell us about jobs in Williamstown?

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

Order on my left! Senator Carr!

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Haven't you got any humility?

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

And Senator Edwards!

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

The South Australian colleagues of mine on this side of the chamber are extremely strong and impressive advocates for the South Australian shipbuilding industry, and Senator Fawcett is no exception.

Opposition Senators:

Opposition senators interjecting—

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

On my left.

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

The Turnbull government's commitment to build at least two of the first Offshore—

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

Pause the clock. Order, Minister. Just pause a moment.

Opposition senators interjecting—

On my left.

Honourable senators interjecting—

On both sides. Order, Senator Cameron. Minister.

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

As I was saying, the Turnbull government's commitment to build at least two of the Offshore Patrol Vessels in Adelaide to help as far as possible, given the current circumstances in which we find ourselves, bridge that gap between the Air Warfare Destroyer program and the beginning of the Future Frigate program build is extremely important. It will support the jobs of those highly skilled shipbuilders in Adelaide and de-risk the Future Frigate program. It is billions of dollars in investment. It is thousands of jobs across the supply chain. It is vital that the Centre for Defence Industry Capability, which is headquartered in Adelaide, will be able to assist small- to medium-sized industry to understand and respond to the opportunities available to it in the Future Frigate and OPV projects. (Time expired)