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

I, and also on behalf of Senator Carr, move:

That the Senate:

(a) notes that:

  (i) on 9 November 2016 the Senate agreed to an order for production of documents directed at the Minister for Defence for the Design and Mobilisation Contract signed between the Commonwealth of Australia and DCNS on 30 September 2016;

  (ii) on 1 December 2016 the Minister for Defence tabled a redacted version of the Design and Mobilisation contract and asserted a public interest immunity claim over the redacted components, and in particular the intellectual property terms, on the basis that these terms were of significant commercial value and highly sensitive to DCNS,

  (iii) poorly negotiated intellectual property rights in Defence contracts both here and overseas have caused significant problems for the ongoing sustainment and enhancement of critical defence equipment, including:

(A) the contracted intellectual property rights for the Collins Class submarine became a significant issue in the ongoing sustainment and enhancement submarines and also in relation to the evolving of Collins as a potential solution for the future submarine project, and

(B) United States (US) Air Force Lieutenant General Christopher Bogdan, Head of the F-35 Fighter program, has publically expressed concern as to the adverse effect that not addressing intellectual property rights at the commencement of the Joint Strike Fighter program in the US is having on the ongoing sustainment and enhancement of the aircraft,

  (iv) the future submarine program involves a projected spend of $50 billion of taxpayers' money and the impact of the intellectual property rights on the entire program, including any potential follow-on submarine class, are significant,

  (v) there is an overwhelming and overriding public interest in respect of parliamentary oversight and scrutiny on the intellectual property terms associated with the future submarine program;

(b) does not accept the public interest immunity claim in relation to the contracted intellectual property terms of the Design and Mobilisation Contract signed between the Commonwealth of Australia and DCNS on 30 September 2016 made by the Minister for Defence in relation to the order for production of documents of 9 November 2016; and

(c) orders that there be laid on the table by the Minister for Defence, by the start of business on the next day of sitting, the intellectual property terms of the Design and Mobilisation Contract signed between the Commonwealth of Australia and DCNS on 30 September 2016.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

I seek leave to make a short statement.

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

Leave is granted for one minute.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

The ability to establish a sovereign submarine capability within Australia has been a prime focus of the Future Submarines Program. Appropriate arrangements for the ownership of and rights to use intellectual property have been implemented with the government of France and DCNS, drawing on the extensive experience of the Collins submarine program. The details of intellectual property arrangements with DCNS are of significant commercial value and highly sensitive to DCNS. It would be inappropriate to disclose such clauses which could disadvantage DCNS and advantage its competitors in business operations. Further, given the role of DCNS in delivering French national submarine programs, such disclosure could reasonably be expected to also damage international relations with France. In accordance with the relevant commercial and public interest immunity considerations, the government will not release the clauses and opposes this motion.

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

I seek leave to make a statement for no longer than 30 seconds.

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

Leave is granted for 30 seconds.

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

The government has fundamentally misunderstood the purpose and the nature of this motion. We are not seeking visibility of any French secrets or commercial-in-confidence matters. We just want an examination of what Australia's rights are in this contract.

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

The question is that the motion moved by Senator Xenophon be agreed to.