Stirling Griff (SA, Centre Alliance) Share this | Link to this | Hansard source

Before moving general business notice of motion No. 632, I ask that the name of Senator Gallacher be added to the motion, and I seek leave to amend general business notice of motion No. 632 standing in the name of Senator Patrick and Senator Gallacher for today relating to the Future Submarine program.

Leave granted.

I move the motion as amended:

That the Senate—

(a) notes that:

  (i) a Government objective for the Future Submarine program is to maximise Australian industry involvement through all phases of the Future Submarine Program,

  (ii) Naval Group, a French Company, is Australia's strategic partner for design, development, build and delivery of the future submarine,

  (iii) to date Naval Group, endorsed by Defence, has contracted four critical systems (diesels, main motors, main DC switchboards and the weapon discharge system) to foreign suppliers without a comparable competitive process,

  (iv) Australia has an established supplier of batteries for submarines: PMB Defence Pty Ltd has supplied batteries to the Collins submarines for three decades,

  (v) in total contrast to the approach with other critical equipment, Naval Group, with Defence's support, has forced the Australian battery supplier, PMB Defence Pty Ltd, into a competition with a foreign supplier, and

  (vi) the Government made strong Australian Industry Participation promises at the commencement of the Future Submarine program and has manifestly failed to live up to its promises; and

(b) calls on the Federal Government to:

  (i) immediately explain why PMB Defence Pty Ltd was not engaged solely for the supply of the Future Submarine's battery,

  (ii) immediately justify why capability or value-for-money requirements purportedly necessitated forcing PMB Defence Pty Ltd into a competition with a foreign supplier, but that four critical Future Submarine systems went to foreign suppliers without a comparable competitive process,

  (iii) in all cases where there is an established Australian designer and producer of Future Submarine components or services, the Government should direct Defence to engage with that Australian company first as it assesses all market options, and

  (iv) provide assurances that the Future Submarine project will meet at least the same level of Australian industry content as was achieved in the building of the Collins-class submarines.

Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) 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.

Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

The Morrison government is maximising Australian industry outcomes and delivering a regionally superior submarine on schedule and on budget. The nature of building one of the world's most advanced platforms requires a selection process where critical systems work seamlessly with overall design and without undue risk.

A competitive process, as done for other critical systems, ensures the selection of the most capable battery technology to maintain our regional superiority. Regardless of the design chosen these batteries will be manufactured in Australia, creating Australian jobs and utilising local supply chains. This will generate a sovereign industry capability with a capacity to enhance, sustain, repair, operate and upgrade the technology over the life of the submarine, creating and supporting Australian jobs.

Question agreed to.