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

My question is to the Minister for Defence, Senator Payne. In April last year the Prime Minister held a doorstop and said 'the submarine project alone will see Australian workers building Australian submarines with Australian steel'. This was backed up by Minister Pyne, who said that the future submarines would be 'all-Australian build with Australian steel' and that this was the recommendation of the Department of Defence. Is the government going to stand by its election commitment and use Australian steel to build future submarines?

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

I thank Senator Carr for his question. As part of the work that is being done by the future submarine office, DCNS and Defence have already engaged with Australian steel companies BlueScope and Bisalloy. Both companies supplied the steel used to build the Collins-class submarines, as many people may recall. The engagement has involved initial visits to the premises of both companies in Wollongong, as Senator Fierravanti-Wells would be very familiar with, on 6 and 7 February to look at the current steel productions processes used by BlueScope and Bisalloy. Further work over the next six months will include the clarification of technical specifications and our qualification requirements for the pressure hull steel, which will provide BlueScope and Bisalloy with the information they need for our steel production needs.

Let me be very clear: any suggestion that the government is not committed to using Australian steel on the future submarines is plain wrong. We are working very closely with Australian steel companies, as I have just demonstrated. Of course, it is no wonder those opposite are unable to understand that. They come to this discussion with a zero record: zero ships over six years, zero submarines over six years, zero Australian jobs in shipbuilding over six years and zero Australian shipbuilding industry. It is no wonder they do not understand.

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

At a recent hearing of the Joint Standing Committee on Treaties, Defence officials would not guarantee that Australian steel would be used to build the future submarines. Minister, given your statement today reaffirming the use of Australian steel, have you raised the government's policy with Defence procurement officials? If not, why not?

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

I do not specifically recall whether I have had a conversation since the particular hearing to which the senator refers, but the Department of Defence and officials concerned with the Future Submarine Program are in absolutely no doubt about the government's policy, which I have just very clearly reiterated.

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

At the same parliamentary hearing an official from DCNS said that the company is disappointed in the low level of Australian industry engagement on the future submarines project. Does the government want local industry involvement in the future submarines project, or are you content to sit back and see the work go to French companies?

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

Senator Carr is, unsurprisingly, completely incorrect. We are absolutely committed to maximising the involvement of Australian industry in the Future Submarine Program, and any suggestion to the contrary is completely wrong.

Let me detail some of the engagement between DCNS and Lockheed Martin Australia with Australian industry, who completed their first submarine industry day in Adelaide in November last year. Over 450 companies, R&D institutions and educational organisations attended the day. The second industry day took place in Sydney in February of this year. Over 270 companies, R&D institutions and educational organisations attended the day. I read this morning that the third day was held in Melbourne this week, again with hundreds of people engaged and involved. Further submarine industry days will be held throughout Australia in 2017, with the next day scheduled in Brisbane in May. The suggestions that Senator Carr made are totally unfounded. We are absolutely committed to maximising Australian industry involvement in the development of future submarines— (Time expired)