Rex Patrick (SA, Centre Alliance) Share this | Link to this | Hansard source

I move:

That—

(a) the Senate notes that:

  (i) in respect of the cost estimates of the Future Submarine Project:

(A) the Auditor-General has stated in the Future Submarine Competitive Evaluation Process (CEP) report that the Defence White Paper 2009 signalled an approximate spend of $50 billion dollars on the construction and sustainment of the Future Submarine over its life,

(B) the 2016 Defence White Paper Integrated Investment Plan indicated the future submarine design and build would be $50 billion on an out-turned price basis,

(C) on 20 May 2018, Defence gave evidence at estimates that the future submarine design and build cost will be $50 billion in constant dollars and, additionally, sustainment costs will be $50 billion in constant dollars, and

(D) on 6 June 2018, the Australian Strategic Policy Institute indicated that the estimates figures used by Defence equated to a design and build cost of $79 billion and a sustainment costs of $124 billion in out-turned dollars,

  (ii) as part of its CEP response DCNS (now Naval Group) provided an estimate of the cost of an all-Australian build of eight pre-concept design submarines and a cost of sustainment over a 40 year period,

  (iii) the submarine CEP has concluded Naval Group is the strategic partner,

  (iv) there are no other strategic partner commercial contenders,

  (v) pricing offered was for a pre-concept design submarine which does not accurately reflect the price of the final design, which will be settled in 2022, and

  (vi) knowledge of the CEP offered price is a valuable marker for future scrutiny of this vital defence project by the Senate; and

(b) there be laid on the table by the Minister representing the Minister for Defence Industry, by no later than 12pm on 26 June 2018, the following from the Final Cost Estimate Template that DCNS submitted in response to the Future Submarine Competitive Evaluation Process:

  (i) the summary sheet total "Australian Build Price", and

  (ii) the total sustainment cost from year 1 to year 40 including labour, material and other costs.

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.

Scott Ryan (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 information requested is commercially sensitive, as it constitutes pricing proposed by Naval Group as part of its response to the Future Submarine Competitive Evaluation Process. To release any of the pricing proposed by participants in the process would undermine their position in relation to future tenders.

Question agreed to.