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

I thank Senator Gallacher for his question. The government expects defence industry doing business with Australia to meet their commitments to manage their costs and to deliver projects on time and according to our specifications. That will not be done at the expense of Australian jobs and Australian industry. In the case of the attack-class submarine, we expect that Naval Group's commitment to spend a minimum 60 per cent of their contract value in Australia will be finalised as a matter of priority.

As we come out of the COVID-19 pandemic, it has never been more important for the government to back in Australian industry, and that is what we are going to do. We have been very clear that we will not agree to provisions in the strategic partnering agreement that are not meaningful and measurable over the long duration of the program or that dilute the protections we currently have. The government is a strong client and will maintain a fit-for-purpose agreement for decades to come. I'm advised that Defence and Naval Group have made progress on the agreement, with details being worked through to finalise the amendments to the strategic partnering agreement.

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

Senator Gallacher, a supplementary question?

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

I haven't seen the specific remarks of Mr Clark, so I will take those at face value from Senator Gallacher, of course. I want to be clear about the amendments to the strategic partnering agreement, though, because they are detailed provisions that apply to Naval Group's achievement of the commitment, including both remedies and incentives. As with all provisions in the strategic partnering agreement and, indeed, other major defence contracts, as Senator Gallacher is well aware from his extended period of time on committees that deal with these matters in the parliament, the specifics of these amendments will remain commercially sensitive. Similar to our other projects, AIC performance will remain subject to parliamentary scrutiny through the Senate estimates process and the program will remain the subject, as it has been, of ongoing, regular reviews by the ANAO.

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

Senator Gallacher, a final supplementary question?

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

The answer is no. I have been clear in relation to the finalisation of the 60 per cent AIC commitment and the nature of the protection of the provisions in terms of the commercial sensitivity of those—and they are matters, as I said, of which Senator Gallacher is well aware.

In concluding my answer, I also seek the indulgence of the Senate to refer to the members of the National Rural Women's Coalition muster, who are here in the gallery in the Senate chamber today. From Christmas Island to Pakenham, Hamilton, Noosa shire, Weipa, Wagga Wagga and multiple locations in between, I welcome them to the Senate.