Defence Shipbuilding

The Hon. T.R. KENYON (Newland) (14:23): My question is to the Minister for Defence Industries. Can the minister describe to the house the effect of the federal leadership change and cabinet reshuffle on South Australia with regard to his portfolio responsibilities and, in particular, the submarine procurement?

Members interjecting:

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Defence Industries, Minister for Veterans' Affairs) (14:23): They're a bit touchy. I thank the honourable member for his question. I congratulate the Hon. Malcolm Turnbull on his rise to the office of Prime Minister and welcome the opportunity to refresh national consideration on the procurement of future submarines. There is no single matter in the federal sphere more important to South Australia right now than committing the nation to a local build of this $50 billion procurement of submarines, and with it the procurement of frigates.

South Australia has a strong record of backing the national effort, with its $300 million investment in Techport Australia, now the hub of naval shipbuilding. I trust the new Prime Minister understands this, but will continue to press the case. The state government has already written to the new defence minister, Senator Marise Payne, congratulating her on her new role and advising just how important it is that the future submarine build happens right here in South Australia. Minister Payne has wide experience in defence, having chaired the Senate defence committee and the Senate inquiry into counterterrorist legislation.

The South Australian government has argued a strident case for a local build of submarines. Economic research commissioned by the Economic Development Board and technical assessments of international options, including Japan, France, Germany and others, have ensured that more than one option is considered.

We are now about to restate this case to the third person to hold the defence portfolio in 13 months since we first alerted the media to the secret visit of the Japanese delegation at the ASC site in Osborne. Our arguments consider the requirements of defence, the value of a sovereign naval shipbuilding capacity and the economics of a continuous build. We will maintain our insistence on behalf of Australian industry, SMEs and workers that the 2013 election promise to build 12 submarines in Australia centred on South Australian shipyards be honoured. I look forward to working with the new Minister for Defence and her team, and I hope that the recent changes at the top lead us finally to being on the right path for a submarine build in Australia based in South Australia.

Members interjecting:

The SPEAKER: I call to order the members for Schubert and Chaffey for interjection during that answer. The leader.