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

I move:

That—

(1) The Senate notes that:

(a) in April 2016, former Australian CEO of Future Submarine designer DCNS (now known as Naval Group), Mr Sean Costello, stated to the media that "over 90 per cent" of the $50 billion submarine build would take place in Australia;

(b) shortly after, the Minister for Defence Industry (Mr Pyne) reiterated those comments on ABC's Q&A program;

(c) in June 2017, Mr Brent Clark, CEO of DCNS Australia, told a Senate committee that "an aim point of greater than 60 per cent would be something that [DCNS] would aim for";

(d) in October 2017, it was reported by Fairfax media that the Minister made public comments at the Pacific 2017 Naval Conference clarifying the definition of a local build to be 60 per cent, and confirming that at least 60 per cent of the work on the submarines would be done by Australian firms;

(e) in February 2018, Mr Costello confirmed that the 90 per cent build figure "absolutely" went into the tender response presented to the Australian Government, "down to the percentile" and it is reasonable to presume that this 90 per cent build figure would have influenced the Australian Government's decision to award the contract to DCNS;

(f) the level of Australian industry involvement and local content in the Future Submarine Project is critical to Australia's defence industry, Australian jobs, and the economic benefit that the Future Submarine Project brings; and

(g) there needs to be clarity on the minimum level of Australian industry involvement in the Future Submarine Project.

(2) There be laid on the table by the Minister representing the Minister for Defence Industry, by no later than 3.30 pm on 14 February 2018, the Australian Industry Capability Plan submitted by DCNS to the Department of Defence in its response to the Future Submarine Competitive Evaluation Process (CEP).

I seek leave to make a short statement.

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Leave is granted for one minute.

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

This document is an important document which outlines the promise of DCNS, now Naval Group, to Australian industry as to what involvement it will have in the Future Submarine project. It is an important document that former Senator Xenophon requested under FOI in April 2017. What this means is that the Information Commissioner is about to make a decision about it. So I respectfully suggest to the minister that she needs to respond to the OPD in a very considered manner. I don't want to see the minister ordered to make another explanation as to why she got her OPD response wrong, because I can assure you I will not hesitate to protect the integrity of the Senate oversight processes in circumstances where the minister makes another bogus claim.

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.

Sue Lines (WA, Deputy-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 plan contains Naval Group's proprietary information regarding submarine design, the manner in which it transfers technology to customers, and supply chain proposals for particular suppliers. If released, this information could disadvantage Naval Group and advantage its competitors in future tender processes. This could occur by revealing to competitors Naval Group's intellectual property regarding design and build of submarines and the methods it has developed to transfer its technology to other countries, which is of particular value to Naval Group as it competes for international programs. Disclosure could be expected to also damage Australia's international relations with France.

Question agreed to.