Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

My thanks go to the opposition for such a welcome! Thank you very, very much! My question is for the Minister for Defence, Senator Reynolds. Can the minister update the Senate on how the Future Submarine program will deliver for Australia's national interest?

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

I thank Senator Molan for his question and also for his unwavering commitment to Australian defence and defence capability. I'm very proud that the Morrison government is firmly committed to Australia's national security, keeping Australians safe and also creating more jobs for Australian workers. That's why the Morrison government is building the future submarines right here in Australia, with Australian workers and with Australian steel. On this side of the chamber we understand that our future submarines are an essential capability for Australian defence and, unlike those opposite, we are acquiring this new capability.

Last week I met with the French defence minister, Florence Parly, and we discussed the ongoing implementation of the Future Submarine program, which is currently in the preliminary design phase. This was a productive meeting, with both Australia and France reaffirming our full commitment to the program but also acknowledging the key role it plays in understanding and underpinning our growing strategic partnership. Minister Parly was absolutely crystal clear in her commitment and support for an ambitious target to maximise Australian industry capability and for meeting project milestones. We will personally meet quarterly to monitor costs and schedules this year to ensure that the next milestone, due in January 2021, is met.

The delivery of the Future Submarine program is hugely ambitious and complex. This is why we have been tough in our negotiations in finalising the strategic partnering agreement and we have implemented a robust fit-for-purpose risk management framework to get this critical capability right.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Molan, a supplementary question?

Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

Can the minister update the Senate on what measures the Morrison government is taking to maximise Australian industry capacity in the Future Submarine program?

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

I thank Senator Molan for the question. Maximising Australian industry capability is a key objective of the Future Submarine program. All 12 of the Attack class submarines will be built in Australia as part of this government's continuous naval shipbuilding program.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

How many did they commit to?

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

Zero! We are deliberately progressing the preliminary design of the submarine. This work, once complete, will form the basis for maximising opportunities for Australian companies in the program for many decades to come. What we do now will set up Australian businesses for success in the future. To date, around 1,600 Australian companies have registered interest in the program. Naval Group Australia has issued 3,579 requests for information to around 1,500 Australian suppliers. This is only the beginning of what will be a once in a generation opportunity for Australian industry and Australian workers.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Molan, a final supplementary question?

Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

Is the minister aware of any alternative approaches to Australia's submarine and shipbuilding program?

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

Senator Molan, unfortunately I am all too aware. The contrast between the coalition and Labor's record on naval shipbuilding could not be starker. Defence was an unacceptable casualty of Labor's appalling economic and budget management. Defence spending fell to 1.56 per cent of GDP in the 2012-13 budget, the lowest level of defence expenditure since 1938, with $18 billion ripped out of defence. Labor delayed the program to replace Navy's Collins class submarines, risking a capability gap. In six years, Labor did not commission a single Australian built naval vessel. The shipbuilding valley of death was Labor's own valley of death. Those opposite harp on about local content, but let me remind you that 100 per cent of zero, which is your record, is still zero. By contrast— (Time expired)