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House of Assembly - Fifty-Third Parliament, First Session (53-1)
2014-11-13 Daily Xml
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Submarine Program

The Hon. S.W. KEY (Ashford) (14:55): My question is directed to the Minister for Defence. Minister, could you update the house on what recent action the South Australian government is taking in relation to our state securing maximum benefits for the build and sustainment of the future of our submarines?

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Defence Industries, Minister for Veterans' Affairs) (14:55): I thank the honourable member for her question. I know that there are many working in her electorate in this industry. Achieving the best possible outcome for South Australia on the design, build and sustainment of the next generation of Australian submarines is an issue vital to every single South Australian family and small business. Without significant involvement in all stages of the construction and sustainment of the new submarines, South Australians will be sold short and robbed of future job opportunities.

I returned this morning from the Submarine Institute of Australia's Centenary Conference in Fremantle. I had the opportunity to meet with representatives of the Defence Materiel Organisation, senior ADF officers, academics and all parties who have expressed to the commonwealth an intention to tender for the next generation of submarines.

In doing this, I had the opportunity to put forward South Australia's case as being the best location for the build, sustainment and ongoing support of our new submarines. All of these discussions were positive and I have been encouraged by the efforts of the companies who have expressed an interest in tendering for the project, their positiveness and their can-do approach.

I met with the French company DCNS, the German company TKMS, and the Swedish potential tenderer Saab. In furthering the case, the South Australian government will continue to push the commonwealth on undertaking a competitive tender process and to maintain their pre-election commitment to build the new submarines in Adelaide. It is important for our nation's defence and economy that all elements of the project be carried out here in our own country.

Maintaining a sovereign capability has a huge range of strategic, military and economic benefits for our country. Our submarine and shipbuilding industry is a vital strategic and economic asset and we must not allow it to wither and die. Confirmation at the conference by defence minister Johnston that no military-off-the-shelf (MOTS) option exists is a positive step but one which requires clarification. This only relates to existing designs. A modified overseas-designed submarine could still be purchased, so we are a long way from a commitment to build in Australia based in South Australia as promised.

Sustainment is the work that is vital to the future of our industry. As I have advised the house previously, economic and budgetary modelling has demonstrated the best overall decision is to carry out as much of the work as possible here in Australia. Therefore it is important that the build portion of the project is undertaken right here based in South Australia. If this does not happen, South Australia will lose a significant number of high-skilled jobs forever, just as we seek to recover from the collapse of the automotive sector.

Without a significant amount of the building work taking place in South Australia, any commitment to ensuring maintenance of future submarines in South Australia is at risk. With the commonwealth Treasurer and Minister of Defence this week publicly stating that no matter where the submarines are built South Australia will benefit from sustainment, it is clear others do not see it that way.

Western Australia's emergency services minister, Joe Francis, told the meeting that he believed that it made sense for all submarine maintenance to eventually be carried out in Fremantle. If we have not built the submarines here in Australia, the case for sustainment in South Australia is extremely weak and we will lose that work. Given the commonwealth statements that we will get sustainment work, I am asking them to rule out moving maintenance to Western Australia. Without a defence industry capability we have no defence capability. The defence industry is vital to South Australia and the government will continue its efforts to secure it for the future.

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