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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-04-11 Daily Xml
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BROENS SA

Mr HAMILTON-SMITH (Waite) (14:36): My question is to the Minister for Defence Industries. How many workers and apprentices are losing their jobs at the Elizabeth-based advanced manufacturer, Broens SA, as the result of the award of a key defence contract by the federal Labor government to an off-the-shelf overseas-based supplier? What action, if any, is the government taking to assist families caught up in those job losses?

The Hon. J.J. SNELLING (Playford—Minister for Health and Ageing, Minister for Mental Health and Substance Abuse, Minister for Defence Industries, Minister for Veterans' Affairs) (14:37): I thank the member for Waite for his question. The government, both me personally—a letter may have been sent by the Premier, but, certainly a letter was sent by me to the federal government making representations on behalf of Broens to the federal government about the tender for the work. It was a tender process subject to all the normal probity requirements of any open tender process.

Broens weren't successful in securing the tender. They were underbid by an overseas organisation and the response from the commonwealth government was that probity didn't allow them to provide Broens with any sort of preferable treatment over and above the successful tenderer. It is an unfortunate fact of life that, when you do have tenders of these sorts, the scope for the government to intervene, even when there may be jobs at stake, is very limited. But the state government, I personally, and, indeed—

Dr McFetridge: What did Nick Champion do?

The Hon. J.J. SNELLING: I am interested to hear the member for Morphett ask, 'What did Nick Champion do?' Nick Champion did an enormous amount—and I am sure Broens would confirm that—to make representations to the commonwealth government on behalf of that company. We did everything we possibly could; however, it would have been improper, if not illegal, for the commonwealth to override what had been an open tender process—override that process and award a contract to Broens—when another company had been successful.

I don't know the exact number; I haven't had an update from Broens. We will work very closely with Broens to try to secure other opportunities for that company. We are very committed to them. I have been out to the factory, met with the various executives and, indeed, workers in the company. It was one of the first things I did. The chief executive of the Defence Teaming Centre organised for me to go out to the company and I did, I think it was last year, and I was very impressed with the operation and the product. It was unfortunate that they were not able to win this tender but it certainly wasn't for want of trying by the state government.

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