Senate debates

Thursday, 30 October 2014

Questions without Notice

Defence Procurement

2:11 pm

Photo of Alex GallacherAlex Gallacher (SA, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Defence, Senator Johnston. I refer the minister to reports that ASC in Adelaide will be prevented from tendering for the future submarine project. I remind the minister about his widely-criticised decision to exclude Australian companies from participating in the tender for Navy supply ships, sending Australian jobs overseas. Can the minister confirm that ASC will be prevented from bidding for this vital national Defence project?

2:12 pm

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

Given that anybody, anywhere in the world, can make, to the Defence department, an unsolicited offer to do any work that is clearly needed by Australia and the Defence department, your question is not only incongruous but one that ignores the way we do our business. I have said to you that there will be a proper first- and second-pass process. For you to ask me who is going to be guaranteed a right to tender is clearly a commercial-in-confidence matter that I am not going to get into.

Photo of Stephen ConroyStephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | | Hansard source

Then tell the PMO to stop leaking against you!

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order on my left.

2:13 pm

Photo of Alex GallacherAlex Gallacher (SA, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a supplementary question. I refer to the minister's failure to confirm that Australian companies will be invited to bid for the future submarine project, and I ask the minister: will the government require foreign bidders to enter into a partnership with ASC or propose options to build Australia's 12 future submarines in Adelaide?

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

Given my first answer—that the government will stick to its first- and second-pass process; we will conduct a very transparent process—and that I confirmed, for about the fifth time this week, that the government has not made any decision, that question, I think, is quite simply moot and a waste of my time.

Photo of Alex GallacherAlex Gallacher (SA, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. Given the minister's failure to commit to inviting ASC to bid for Australia's future submarines and to requiring foreign bidders to build the submarines in Australia, will he at least commit to giving preference to builders or bidders who propose to build the submarines in Australia?

2:14 pm

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

The matters contained within that question are probably in breach of the capability acquisition guidelines for the Australian government.

Senator Wong interjecting

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order on my left.

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

The point is: I have said that it will be transparent and there will be the normal first- and second-pass process. Now, Senator, I do not know how many times you need to be told—

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

To the chair.

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

but the answer is obviously something that you do not want to digest. I will just keep giving the same answer to the same incongruous, stupid questions.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | | Hansard source

You will leak the details to the paper, but you will not answer the question.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order! I remind senators to address their remarks to the chair with both the questions and the answers.