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

My question is to Senator Payne, the Minister representing the Minister for Defence Industry. I refer the minister to the ABC reports this week revealing that the new Defence dress uniforms to be worn by Australian soldiers will be manufactured in China through a $9 million contract awarded to Australian Defence Apparel that involves subcontracting arrangements overseas. Can the minister inform the Senate how this contract will, to quote Minister Pyne:

… maximise jobs and economic growth and deliver the very best capability available for the Australian Defence Force.

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

I think the question actually pertains to the portfolio of the Minister for Defence Personnel, but happily I have that job as well, in representation terms, so I am very happy to answer Senator Carr.

As the senator has observed, the Australian Army is introducing a new service dress uniform which has been progressively rolled out since June of this year. In April 2015 a contract was signed with Australian Defence Apparel, a company based in Bendigo, that includes a service dress jacket and 'lowers'. For the senator's benefit, lowers are trousers, skirts and things like that. The cost to introduce the Army's new service dress uniform is approximately $9.6 million over two years. Australian Defence Apparel's tender was assessed as the best value for money, with the tendered price representing an estimated saving of over 18 per cent over the prices at that time.

The service dress jacket and lowers are being manufactured in China utilising established subcontractor arrangements. However, items such as the Akubra-provided ADF slouch hat and the RM Williams parade boots are of course manufactured in Australia. Australian Defence Apparel has estimated that manufacture in Australia would be triple the cost of the contract as it stands.

Commonwealth procurement rules do indeed require Defence to seek value for money and do not allow discrimination based on the country of manufacture. The exception to that is the standard dress uniform, which was granted a government exemption in 2011. That garment is manufactured in Australia by Australian Defence Apparel, using Australian material.

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

Senator Carr, a supplementary question.

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

The ABC report stated that the decision to allow the new dress uniform to be manufactured overseas was so sensitive that three ministerial officers were to be consulted. Minister, I ask you this: why was an exemption not granted for the manufacture of these Australian Defence uniforms, as it was in 2011?

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

I thank Senator Carr for that supplementary question. As I understand it, none of the responses to tender provided by any interested party in Australia contained an all-Australian response, because of some of the details that I have alluded to, particularly in regard to cost, in my answer.

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

Senator Carr, a final supplementary question.

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

Minister, I refer to your visit to Australian Defence Apparel in Bendigo less than four months ago, when you said on the issue of Defence procurement:

I think the best step we have taken in that regard is the Defence Industry Policy Statement which is all about Australian industry engagement …

What do you say to those workers who have been so betrayed so soon after your glib assurances?

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

As I said to the senator in response to his initial question, the contract was in fact signed with Australian Defence Apparel on 30 April 2015. Having made that visit to Australian Defence Apparel and spoken to a large number of—

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

So you lied to them!

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

Order! Withdraw that, Senator Carr.

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

Mr President, I seek that Senator Carr withdraw that remark.

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

Senator Carr, you will have to withdraw that.

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

I withdraw.

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

Thank you.

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

So you didn't tell them the truth! Is that the story, then?

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

Order! After asking you to withdraw the first statement, you are implying the same thing with your second statement. I will not ask you to withdraw; I just make that observation.

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

I am very happy to respond to the question—

Senator Wong interjecting—

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

Order, Minister! Senator Wong, I think I have dealt with that matter.

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

Mr President, a point of order: I would ask you to consider the Hansard of today's question time. You refused to require the withdrawal of an assertion that Senator Cameron hates volunteers. I ask you to consider whether the standard you are now applying on this issue is identical.

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

As I always do, Senator Wong, I will review the question time Hansard.

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

I have actually forgotten the question!

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

It is no laughing matter if you have lost your job.

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

Order! Senator Cameron.

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

If you take the time to visit Australian Defence Apparel, as I have, and you see the work that is being done in relation to the standard dress uniforms—the thousands and thousands of uniforms that are being produced on the floor of the factory there in Bendigo—then you will be very impressed with the work that is being done, as I was. You will be very impressed with the pride that the workers take in dressing the Australian Defence Force, as I was. As we announce in 2016 when we release the defence white paper— (Time expired)