Defence Shipbuilding

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Defence Industries, Minister for Veterans' Affairs) (16:14): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.L.J. HAMILTON-SMITH: There have been important new developments raising doubts about naval shipbuilding in South Australia of which the house should be made aware. Earlier this week, South Australian senator Sean Edwards said he had sought assurances from the Prime Minister relating to the design and construction of Australia's future submarines. Senator Edwards said that Prime Minister Abbott had assured him the $30 billion to build 12 submarines would now be opened up:

…to a competitive evaluation process and it would be a fully competitive tender, and the implication of that...is that South Australian shipbuilders would now be able to throw their hat in the ring.

The SPEAKER: Point of order, member for Chaffey.

Mr WHETSTONE: Mr Speaker, with a ministerial statement there is normally an accompanying document.

The SPEAKER: It is a courtesy extended to the house, and in particular the opposition, to provide a copy of the ministerial statement contemporaneously with its delivery.

The Hon. M.L.J. HAMILTON-SMITH: It is not available on this occasion, sir, I am afraid.

Members interjecting:

The SPEAKER: Perhaps the minister could come back to it when copies are available so we maintain the convention. Ever so briefly, I will go to the minister—

The Hon. M.L.J. HAMILTON-SMITH: I do not think that will be possible today, sir.

The SPEAKER: It is an extempore ministerial statement. Minister.

The Hon. M.L.J. HAMILTON-SMITH: A competitive evaluation process does not, however, guarantee that submarines will be built in Australia. The state government was encouraged by the assurances given by the Prime Minister reported by Senator Edwards, although Senator Edwards was attacked by his colleague Mr Briggs (the member for Mayo) who questions his assertions.

Today's further explanation of the term 'competitive evaluation process' by defence minister Kevin Andrews suggests intentions fall well short of what was promised to South Australian voters in November 2013. That promise, delivered by the Coalition in the presence of the state Liberal leader, was clear: 'We will deliver those submarines from right here at ASC in South Australia,' he said outside the Australian Submarine Corporation's Osborne headquarters. 'The Coalition is committed to building 12 new submarines here in Adelaide.'

The most recent assurances by the Prime Minister and the defence minister are far less than that, and should be drawn to the attention of the house. The commitment given to Senator Edwards was, as he put it, 'a chance for the ASC to throw their hat into the ring'. ASC is a shipbuilder, not a naval ship or submarine designer. It can partner with one or several design bids, but under the commonwealth government's recent assurances, there is no guarantee of a local build.

The process must ensure that the submarines are built in Australia, based in Adelaide. The federal government must mandate that design and construction tenders include Australian-based shipbuilders utilising local supply chains. This would allow the ASC and other Australian-based shipbuilders to participate in the tender process, and guarantee jobs for Australian workers and supply chain opportunities for Australian businesses.

We are encouraged by the Prime Minister's assurances and the visit of defence minister Andrews, but as you can see, we have not got there yet. During the state government's Defence Industry Policy Summit on 21 October last year, experts from government, industry, unions and academia discussed the merits of an Australian-built submarine and for greater investment in Australia's defence industries. Their statements clearly showed that the economic and security benefits of this approach far outweigh any argument for a cheaper offshore solution. The government will soon release a summary of those statements in the final report of the Defence Industry Policy Summit.

The South Australian government intends, on behalf of South Australian families, workers and businesses, to keep the federal government to their firm commitment, not just a broad assurance in the context of a leadership vote—

Mr Whetstone interjecting:

The SPEAKER: The member for Chaffey is called to order.

The Hon. M.L.J. HAMILTON-SMITH: —but also that they keep their election promise to build our new fleet of 12 submarines in Australia, centred on Adelaide. South Australians will demand that this 'competitive evaluation process' follows the correct framework for defence procurement along the lines of a competitive tender, where the best solution is chosen for our Navy and for the sovereignty of Australia.

Our constituents have a right to expect that this process is carried out by an independent and expert panel away from the influence of a 'captain's pick'. Yesterday the Prime Minister stated that 'good government starts today'. The South Australian government believes the best way to show good government is for the Prime Minister and the federal government to commit to a local bill to back local jobs and local families to start where this all began, back before the last federal election.

The people of South Australia have this state government's commitment to hold the federal government to account for its promise to this state and to our valuable defence industry and all who make it possible.

Mr Marshall interjecting:

Mrs Vlahos: You're laughing about the jobs on the line in the submarines. You're laughing about it. What a joke as an opposition leader you are. What a joke of an opposition leader you are!

The SPEAKER: The member for Taylor is called to order and will not provoke the opposition.