House of Assembly: Wednesday, May 16, 2012

Contents

FUTURE SUBMARINE PROJECT

Dr CLOSE (Port Adelaide) (14:06): My question is to the Premier. What progress has been made by the federal government on the Future Submarine Project and what are the risks to the assembly of the new submarines in South Australia?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Minister for State Development) (14:06): I thank the honourable member for her question. I know she has a keen interest in the Future Submarine Project, as it obviously implicates a number of employment opportunities in her electorate. As a large island nation, an effective fleet of submarines is a critical part of the Australian Navy and ensures that our nation can protect its interests and also advance the interests of those of our allies.

Thousands of South Australians have worked for over two decades at Port Adelaide designing, assembling and sustaining our nation's fleet of submarines. The Australian Submarine Corporation facility at Osborne is one of the state's largest manufacturing facilities and ranks with BAE Systems as one of the largest defence industry employers in this nation. The construction industry that involves the 12 new submarines is indeed that: it is not just a project; it will become an industry. The construction of the replacement Collins class submarines will be the largest procurement exercise ever undertaken by the commonwealth government in its history.

On a construction project of this size it is absolutely critical that the commonwealth gets the process right, so we support them in that. I was very pleased to attend with the Prime Minister down at Osborne when she announced that the commonwealth will be committing $214 million to the Future Submarine Project to consider the four options for acquiring future submarines. Every one of those four options is a good option for South Australia. Some are better than others, but they are all very good options for South Australia because they will continue to be assembled in Adelaide. For those members that have not been down to Techport, it is very instructive to look at what they mean by 'assembly', because I do not think the phrase does it justice; it is a very sophisticated exercise.

This would guarantee our state's ongoing advanced manufacturing capability and secure thousands of South Australian jobs. But, unfortunately, this commitment is not bipartisan. The shadow treasurer, the Hon. Joe Hockey, said on Seven News Sydney, after the Prime Minister's announcement:

We want to see what the benefit is in actually building these submarines here in Australia rather than getting cheaper versions from overseas.

This was after the shadow defence minister, Senator David Johnston, said on Lateline in March:

If the Coalition was to think that it's more cost-effective and a better capability to acquire a ready-made solution, we would certainly be interested in that.

Now, speculating out loud about whether it is a good idea to be building submarines in Australia is, we think, a very alarming prospect, and the federal opposition's failure to support the continuing submarine assembly in Adelaide means that every worker and their family that relies on submarine assembly is facing an uncertain future. Madam Speaker—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: —both the state and federal Labor governments support building submarines in South Australia, and our simple question for those opposite is: do they support us in that regard? Will they stand with South Australia in defending our submarine industry or will they stand with Tony Abbott and the federal Liberal Party in supporting his proposition? This is a simple choice, Madam Speaker.

Members interjecting:

The SPEAKER: Order!

Mr WILLIAMS: Point of order, Madam Speaker. The Premier is clearly debating the answer to the question.

The SPEAKER: No. The Premier was quoting from some things that were said, and he can choose to answer the question as he wishes, but he has 12 seconds left.

The Hon. J.W. WEATHERILL: Thank you, Madam Speaker. In my 12 seconds can I just say that this is a matter about which there should be bipartisan support. We are simply asking for those opposite to join with us, urging their federal colleagues because, if it is the case—and everyone seems very cocky over there—that there will be a federal Coalition government after the next federal election it becomes even more imperative for them to support us in this regard.

Members interjecting:

The SPEAKER: Order!