Minister for Defence - Transcript - Doorstop interview – Austal shipyards, Henderson, Western Australia

Doorstop interview – Austal shipyards, Henderson, Western Australia

Subjects: Shipbuilding, Submarines, South China Sea

MINISTER PAYNE:

It’s fabulous to be here with my friend and colleague, Senator Linda Reynolds, and the Premier of Western Australia, Colin Barnett, to have an opportunity to visit this extremely impressive facility. I’ve said in the media recently that I really think we are on the cusp of something fabulous in terms of Australian Defence Industry, what we will need, what they will be able to do over the next few of years. This is a really good place to have an opportunity to see some of that expertise at its best, to meet with senior executives here at Austal, and to get a bird’s eye view of some of the things that industry and Western Australia in particular is doing. I’ve been very much encouraged by my Liberal Senate colleagues from WA, not just Senator Reynolds but Senator Back and the Premier to make this visit and it’s a great chance to be able to do that before the end of the year. I might ask Senator Reynolds and then the Premier if they’d like to say a few words.

SENATOR REYNOLDS:

Thank you very much Minister and on behalf of all of us here in Western Australia it is wonderful that we’ve got the Minister here and that she’s given so much time to have look at the amazing facilities we have down here in Henderson. Quite often in Western Australia we don’t sing our praises enough, but I think it’s very important that the Minister has come here to see firsthand not only Austal but all of the other shipbuilding and manufacturing facilities we have here in the West. So, Minister, thank you very much on behalf of us all for coming here just so we can showcase the wonderful assets that we have here and what we can contribute to naval capability into the future. Thank you.

MINISTER PAYNE:

Premier, please join us.

PREMIER BARNETT:

Good morning, I’d like to welcome the Defence Minister to Western Australia and particularly to the Australian Marine Complex. This whole area was a joint undertaking by the Commonwealth and State Government as part of the Federation of Australia – Centenary – and it was a John Howard project and there’s been subsequent expansions here. I think one of the great advantages is the record of this area, Austal in particular has built over 200 ships of various varieties and now is a very prestigious global defence provider in naval ships and I think the only company in the world that’s been able to develop ships for the US Navy. Other operators along here, and I think Marise, one of the things you’ll notice is that while it’s been government sponsored in terms of the infrastructure, all private sector projects along here, companies, very flexible workforce, very good workforce and you’ve got some big decisions coming up in terms of procurement for a number of things, particularly for the Navy. All Western Australia says is, thanks for coming. Please recognise, as I’m sure you do, this is sophisticated shipbuilding and submarine maintenance and other activity that takes place here and all that Western Australia wants is an equal opportunity to bid for those projects and we believe that the businesses along here, particularly Austal, are world competitive by their record and will stand on their own two feet. But great that you’ve come along to look at the capacity here.

MINISTER PAYNE:

Fabulous to be here. Any questions anyone?

JOURNALIST:

What shot does WA have in any of the three contracts: the frigates, the submarines, or the offshore patrol boats?

MINISTER PAYNE:

Well, we’re involved in three separate competitive evaluation processes, as you’d be aware. The CEP for the submarines: final submissions received on the 30^th November from three different proponents internationally, in France, in Germany, and in Japan. We are commencing the competitive evaluation processes for the Offshore Patrol Vessels and the Future Frigates essentially as we speak. The government has made the decision to start that process just recently and I would love to see as much engagement as possible from Western Australia in those evaluation processes, those tenders, and the competitive nature of those will speak for itself in the end, of course. But to have facilities here and not to participate in that would be just plain crazy. So clearly we would encourage as many comers as wish to participate.

JOURNALIST:

What’ll be the guiding principles?

MINISTER PAYNE:

Ah well, capability, capability, capability. Have you met the Chief of Navy? Who is here with us today, but also the best possible engagement of Australian industry as well.

JOURNALIST:

So it won’t just be about propping up jobs in South Australia?

MINISTER PAYNE:

I think I said capability and the best possible opportunities for Australian industry.

JOURNALIST:

The Prime Minister is in Japan on Friday. Do you expect the Japanese Prime Minister to make the case for Japan for (indistinct) Australia’s submarines?

SENATOR PAYNE:

Well that’s really a matter between the Prime Ministers. Prime Minister Abe and Prime Minister Turnbull have met recently at a number of international fora and I suspect they’ll take up the same sort of conversations they were having then and if that’s part of it then that’ll be very informative on both sides I would imagine.

JOURNALIST:

Just on a separate question, how long has Australia been asserting freedom of navigation with RAAF flights over the South China Sea?

MINISTER PAYNE:

How long?

JOURNALIST:

Yes.

MINISTER PAYNE:

Since 1980. It’s actually not an assertion of freedom of navigation, it’s what we do, it’s called Operation GATEWAY and it’s been underway since 1980.

JOURNALIST:

Is Jay Weatherill right when he says these contracts should not be spread around the country?

MINISTER PAYNE:

Well, Premier Weatherill’s perfectly entitled to his own views and I’m sure he’s campaigning very hard for South Australia as I know Premier Barnett is and I would expect he is for Western Australia. I come from New South Wales; you might hear a similar view from Premier Baird. But the most important thing is that we have a robust, transparent, and constructive process that enables all bidders, if you like, to participate on a level playing field.

JOURNALIST:         

So is it a good idea that there's this competition between WA and South Australia on this?

MINISTER PAYNE:

I don't think it – I don't actually see it that way. I see it as a positive to engage as many players in the Australian defence industry as possible. In the first quarter of 2016 we will launch not just the Defence White Paper and an integrated investment programme with that, but also a fabulous Defence Industry Policy Statement which is really going to match, I think, in positivity and in opportunity the Prime Minister's recent Innovation and Science Agenda announcement, for defence industry though in this case. And I know that the work on that Defence Industry Policy Statement has been done in very broad consultation with industry including representatives of defence industry in Western Australia, South Australia, New South Wales, Tasmania, the Northern Territory, and so the list goes on. That's what's important for Australia –that we are absolutely at the forefront of engaging in innovation in defence industry no matter where you come from.

JOURNALIST:         

Just with the freedom of navigation flights as well, why do Australians only get to learn of this when a recording happens to be captured by a foreign TV crew?

MINISTER PAYNE:

Well I think, given we’re talking about an operation that’s been underway since 1980, regular process, perhaps the approach the media take of shock, horror, revelation is one for them to talk about, not for me.

JOURNALIST:

Do you think there’ll be others?

MINISTER PAYNE:

It’s a regular programme.

JOURNALIST:

Do you think it does provoke China, our biggest trading partner though?

MINISTER PAYNE:

I don’t think so, I don’t think the Chinese are at all surprised to know that Australia supports freedom of navigation, freedom of overflight in accordance with the international Law of the Sea.

JOURNALIST:

Is the government still committed to 2 per cent of GDP spend on Defence?

MINISTER PAYNE:

There’s been no change to that policy. Thanks everyone.