Minister for Defence - Doorstop interview – ASC, North Osbourne, South Australia

MINISTER PAYNE:

Well, ladies and gentlemen, thank you very much for joining me here this morning and giving me the chance to say a few words. Can I thank both of my colleagues, Senator David Fawcett and Matt Williams, the Member for Hindmarsh, for hosting me here in South Australia. I’m going to ask both of them if they’d like to say a couple of words. Matt, do you want to kick off?

MATT WILLIAMS:

Thanks Minister. It’s great to have the Defence Minister here in Adelaide and later on this afternoon in my seat of Hindmarsh. We’ve been speaking with Defence industry leaders and suppliers earlier today, we’ve had a good look at what ASC are doing with the Air Warfare Destroyers and also the work on the submarines. We’re looking forward very much to the work that ASC hopefully can do on the Future Frigates which we know will be built in Adelaide – 2500 jobs, and a continuous shipbuilding programme that we’re very much looking forward to. The Government’s done a great job in making that firm commitment to Adelaide and South Australia.

SENATOR FAWCETT:

At breakfast this morning we had nearly 160 people from Defence industry coming out. There’s a great sense of optimism there that the commitments the Government has made, not only in terms of the 2 per cent of GDP investing in Defence, but also the continuous build of ships and the First Principles Review which is looking at a new relationship between Defence and Defence industry. It’s given a great sense of optimism, which is good for the future in South Australia, and combined with the Innovation Policy of the Turnbull Government, Defence industry in the South Australian community has a lot to look forward to.

MINISTER PAYNE:

Thank you, any questions ladies and gentlemen?

JOURNALIST:

Now that you’ve toured ASC, what are your impressions?

MINISTER PAYNE:

Ah, well, overwhelmingly positive. I’ve seen some extraordinarily diligent workers on the ground, on the ship as it were, doing some great things on the AWD there today, or AWDs there today. Obviously this is a very important project for us to bring to completion. I’ve just had a look at some of the sustainment activities around the Collins Class submarines and again I know that the teams that are on the ground here are doing an excellent job.

JOURNALIST:

You’ve just been in Western Australia, do you, how do you compare the two? Do you have a preference as to which one should get the next Defence contracts?

MINISTER PAYNE:

That’s not how Defence contracts are awarded based on my preference, so probably not a constructive contribution I could make on that. But let me say that, all around this country we have some exceptionally skilled workers. Whether they are working in the patrol boat space, in the submarine space, in the AWD space, and all the other things that are done in shipyards from one end of the country to the other, I value their contribution, they are the core of what we need to do into the future.

JOURNALIST:

The fact that you’re visiting submarine capabilities after the bids have closed, on November 30, can people read into that to think an offshore build and even maybe a hybrid build is either off the table or becoming increasingly unlikely?

MINISTER PAYNE:

I don’t think people can read anything into that. This is part of my job, this is what I do.

JOURNALIST:

Minister, the slugging match between Premier Weatherill and Premier Barnett: do you think that that’s unhelpful at this point and would you like to see more cooperation between the States?

MINISTER PAYNE:

I’m not going to pass comment on the activities of robust Premiers having robust exchanges, that’s a matter for them, and in fact I expect them to campaign on behalf of their states as you’d expect any state representative to do. Good on them.

JOURNALIST:

Senator, is it likely HMAS Darwin will head through disputed waters through China near the Spratly Islands early in the new year?

MINISTER PAYNE:

Well, I think there’s been a number of reports about activities recently, both in relation to Operation GATEWAY and other work which we do as part of our routine surveillance activities in the region. Maritime surveillance and air surveillance are very important to the job that the ADF does in maintaining regional stability and security. We’ll continue to do that, and we do that in accordance with the international laws of the sea, freedom of overflight, freedom of navigation. We always operate in a very constructive way in the region.

JOURNALIST:

Minister what’s your view on the workforce culture at ASC? The former Prime Minister Tony Abbott, in August, said he had confidence in the workers but that said, at times, the workforce had been let down by nationalised industry culture? What’s your view of the culture in the workforce here?

MINISTER PAYNE:

I’m not going to be critical of the culture or the workforce, in fact. As I said, Paul, the activities that I’ve seen today were being carried out by extremely diligent, enthusiastic men and women on all of the platforms that we’ve just had a look at. I value that workforce and I value the skills that they bring to the table which we need to retain and grow over the coming years to make sure that we are able to back the continuous ship builds that Matt has spoken about, that we are able to do the best possible job here in Australia to deliver the best possible capability for the ADF.

JOUNALIST:

Minister, you spoke about continuous build: the argument from the local Defence industry, which I think you’ve heard a bit of this morning is, you can’t have that unless you have offshore patrol vessels built here as well. Can you rule out that jobs won’t be lost here as well in 2019 when AWD winds up?

MINISTER PAYNE:

As you know, and as I confirmed this morning at the Defence Teaming Centre breakfast, we have a competitive evaluation process underway in three areas now. So, the Future Submarines – bids received as of the 30^th of November from the three participants – for the Offshore Patrol Vessels, and for the Future Frigates and I laid out the path for those at the breakfast this morning. I think it’s very important that those competitive evaluation processes are seen to be above question, are seen to be transparent, are seen to be constructive, are seen to engage all participants who wish to approach us as part of the process. Second guessing that is not conducive to making that the best process that it can be.

JOURNALIST:

Minister, there’s a bit of a sense of anxiety among the Defence industry here about future jobs. When can we expect to have a bit more certainty about some of those projects?

MINISTER PAYNE:

I got a very positive sense, in fact, out of the breakfast this morning. As Senator Fawcett said, I think we had almost 160 people in the room representing a vast range of Defence industry here. The processes that are set out, I’ve indicated, in relation to future submarines, Defence will provide advice to government in 2016. We have a number of initiatives taking place in the first quarter of the year. They include the release of the Defence White Paper, which will be accompanied by an integrated investment programme, fully cost assured, externally cost assured, that is the first time that industry will have had a document like that to work with in Australian defence production. We will also be releasing a Defence industry policy statement which has been worked through with the major participants in Australia at several levels – small, medium and prime – to determine the sorts of shape they would like to see their engagement with Defence take. I think that will be an absolutely confidence boosting release for industry across the country when that happens in the first quarter of next year.

JOURNALIST:

Minister, the State Owned Common User Facility here – you probably have inspected – is that, do you have a view on whether that is something that could be sold as part of the potential sale of ASC or should remain in State hands?

MINISTER PAYNE:

Well, as you know, the facility itself in relation to ASC is a matter for the Minister for Finance to determine and I’m sure he’ll do that in constructive discussions with the State Government.

JOURNALIST:

Minister just with ASIO, do you think it’s appropriate that the ASIO Chief has been calling MPs to ask them to tone down their language?

MINISTER PAYNE:

I have absolute confidence in the Head of the Australia Security Intelligence Organisation. I think Duncan Lewis is an exceptional Chief of ASIO and his judgement is judgement which I will back all the way.

ENDS

Media contacts:

Henry Budd (Minister Payne's office)  0429 531 143

Defence Media (02) 6127 1999