Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence, Senator Payne. I ask this question as probably the happiest senator in Australia on Friday with the wonderful OPV announcement. My question to the minister is: could she please—

Opposition Senators:

Opposition senators interjecting—

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Order. On my left! Order!

Senator Kim Carr interjecting—

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

Western Australian industry, Senator Carr—WA industry!

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Order, across the chamber! Senator Carr, please. Senator Reynolds, your question?

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

Can the minister please advise the Senate how the offshore patrol vessel project will help establish a sovereign naval shipbuilding industry?

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

Thanks very much to Senator Reynolds for her enthusiastic welcoming of this decision by the government last Friday.

In fact, the Prime Minister, the Minister for Defence Industry and I announced that renowned international shipbuilder Lurssen will be the prime contractor and designer of our offshore patrol vessels. It's a $4 billion investment in cutting-edge naval technology that will create a thousand jobs across the country. Importantly, these OPVs will be built in Australia and are the start of our sovereign continuous naval shipbuilding plan that we set out in the 2016 Defence white paper.

The selection of Lurssen follows a competitive evaluation process to select the best capability and to build a sovereign naval shipbuilding industry. Importantly, we know that these OPVs will be able to deliver from day one, because it is a proven in-service design. For decades to come, these vessels will have a vital role in securing our borders and protecting our interests in the broader region. The new vessels will be larger and more capable than the current Armidale class patrol boats, and will have a key role in border protection. Their role will be to conduct enhanced patrol, intelligence and surveillance missions; search and rescue; humanitarian assistance and disaster relief; and border protection missions, both in peacetime and, potentially, in time of any conflict. They will have state-of-the-art sensors and a Saab-Australia-developed 9LV combat management system. The OPVs will be world class. They will provide the Royal Australian Navy with the best capability possible, most importantly.

We find ourselves in a very complex strategic environment, which necessitates a strong focus on security. That's why the Turnbull government is undertaking an unprecedented modernisation in peacetime of our ADF. The decision we've made on the OPVs is a key part of our unwavering commitment to our nation's security.

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Senator Reynolds, a supplementary question.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for that answer. Can the minister also advise how the OPV project will help lock in a sovereign naval shipbuilding industry and also protect our borders?

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

I am very keen to reinforce the government's commitment to creating a sovereign Australian shipbuilding industry.

This government has indeed brought the OPV project forward to avoid a capability gap and to secure as many Australian shipbuilding jobs as possible, after those opposite, as I have said before in this chamber, did nothing for six years. By selecting an experienced international design partner we're ensuring that technology, intellectual property, business processes and workplace cultures are transferred to Australian shipbuilders and to supply chains so that we can grow a long-term and sustainable sovereign naval shipbuilding industry.

I note that during the competitive tender process there was no Australian design house competing to be part of the design team, as some have asserted. Under Lurssen, the OPVs will be built in Adelaide from 2018 and in Western Australia from 2020, using Australian shipbuilders and maximising the use of Australia's shipbuilding industry. (Time expired)

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Senator Reynolds, a final supplementary question.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

I again thank the minister for the confidence in Western Australian manufacturers and shipbuilders. Can the minister advise the Senate what other investments the Turnbull government is making to support the introduction of these larger, more capable vessels?

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

There are some important developments, in infrastructure in particular, at HMAS Stirling in Western Australia, at HMAS Coonawarra in the Northern Territory and at HMAS Cairns in Queensland.

The upgrade of those facilities, which will cost over $900 million, will include larger wharfage, logistic support infrastructure and capability-specific training facilities—particularly at HMAS Stirling in Western Australia, which will be the main support base. This is very good news for local construction firms and tradespeople, that will have an opportunity to participate in these upgrades—particularly under our new Local Industry Capability Plan policy. SMEs in those locations are able to participate also in the ongoing long-term support and sustainment of the new vessels at each of these locations. They are opportunities which will flow for decades to come.

These investments in WA, in the Northern Territory and in Queensland are a further demonstration of the government's commitment to ensuring that local communities benefit from our $200 billion investment in defence capability over the next decade.