Subjects: Collins Class periscope upgrade; Naval Group contract; AUKUS; Labor’s lies on cashless debit card.
PETER DUTTON:
Thank you very much for coming out on a public holiday.
I’m really excited to be back in South Australia. The work that’s going on here at Osborne is employing thousands of Australians, and we know that by the end of this decade, there’ll be 15,000 Australians employed in the shipbuilding enterprise, and 5,000 of those here in South Australia.
We’re here today to announce another 20 jobs for the $381 million dollar investment into the optronics, which is essentially going to replace an aged technology. It’ll give a much quicker read on what the submarine can see outside. It means the periscope doesn’t have to be exposed and to provide that extra point of vulnerability for the submarines.
It brings us really up to speed with the US and the UK in their platforms, and I’m incredibly pleased to work very closely with our industry players. I want to say thank you very much to Stuart and his team here at ASC – an incredible workforce – and if you can see the detail behind that they go in to, to bring the submarines up to scratch and to provide the support that’s required – it’s a remarkable talent that they have.
Just in the life-of-type extension here, we have about 1,300 jobs here in South Australia and we know that with the nuclear propelled systems in the new submarines that we’ll be getting, along with everything we’re doing in the Hunter class, that is going to mean significant work for the South Australian workforce for many, many years to come.
So I’m very happy to be here today. A $381 million investment. It builds on the money that we’re already putting into shipbuilding and into Defence over the course of this decade.
It’s a very dangerous decade ahead, let’s be very frank about it. If you don’t have a stronger economy, then we won’t have a stronger future – and not just in an economic sense – but in a national security sense. We have to manage the economy well. We have to get the budget right and take the right decisions to make these sorts of investments.
We know that the Labor Party pulled out about $55 billion from defence during their time in power and we’ve got the Greens out today – who if Mr Albanese is to be prime minister – would be in government with the Greens talking about closing down Pine Gap, stripping billions of dollars from the Australian Defence Force, it’s dangerous at exactly the wrong time. That’s why the steady hand of the Morrison Government is required.
We’ve made decisions which have kept our country safe, and we’ll make decisions into the future to make sure that our country does stay safe and stay strong in a very uncertain world.
It’s very clear to Australians now; we’ve seen the performance of Mr Albanese over the last week; you cannot risk the national security in the hands of somebody who really has his ‘L plates’ on in Anthony Albanese. It’s a huge risk to go to Labor at this election. It would put at risk the jobs here in South Australia; the investments that we’ve got lined up to go into Defence and Australians are weighing that up this Easter.
QUESTION:
You’re talking there about jobs in Adelaide. Can you tell us what proportion of these new nuclear submarines will be built in Adelaide?
PETER DUTTON:
Well, we’ve said that we’re going to acquire at least eight submarines, and that will mean thousands of jobs here. As you know, there’s been visits by the US and the UK out to this very shipyard. It means that we’ve got our eye on significant expansion here. We need to triple the size of the land that you see at the moment, and those negotiations are underway – so I’m not going to influence those negotiations.
But when you look at the massive expansion that’s required here at Osborne, that the US and the UK have already been out inspecting, we can expect, not just the jobs, but it’s the multiplier into the local economy. That’s important, as you’re seeing with the life-of-type extension, of the full cycle docking, these are thousands of jobs sustainable for a long period of time to come.
QUESTION:
Is there still going to be as many as there would have been under the Naval plan? Is Adelaide losing jobs under this new arrangement for the nuclear submarines?
PETER DUTTON:
No. I think it’s important to point out that whichever boat we go with, whether it’s the US or the UK, it’s a big vessel. I mean the Virginia class submarines, is from memory, about 116 metres and the number of people involved in the construction of something of that scale, is much bigger than what we had planned for the submarine contract from the French.
So I think you’ll see more jobs, not less here in South Australia. As I’ve said before, my concern is not the number of jobs that we’ll have, but how we can fill those. So we’ll be working very closely with our counterparts in industry and at the state government level to see how we can find people for those jobs. I think frankly, that’s the biggest issue.
QUESTION:
Senate Estimates data shows that around 669 shipbuilding jobs are estimated to be lost in South Australia, is that the case? And does that mean that these 20 extra jobs means that we’re still losing around 650 jobs?
PETER DUTTON:
No, no it doesn’t at all. I mean the jobs will continue to grow and as we get the nine Frigate class built here as well, that will be a significant job making opportunity…
QUESTION:
…but are we losing 650 jobs?
PETER DUTTON:
No I think you’ll see…
QUESTION:
…is that true or not? Are we losing 650 and then gaining 20?
PETER DUTTON:
No, we’re not. We’re going to see the number of jobs here continue to grow and they must because the security reality for our country, for the Indo-Pacific, means that we need to build more here, and we’ll be having more to say about what additional assets we can build here in Australia as well.
I just think we live in a very uncertain time and as you’ve seen the Greens out today saying that they see no threat from China militarising ports in the Indo-Pacific, I mean we are going to need more surface fleet vessels. We are going to need more submarines. We are going to need more assets in the sky. There’s more investment that we’re making with industry partners, including here in South Australia: drone technology; autonomous vehicle technology, all of that is going to be part of the defence picture over the course of the next few years, within the next couple of decades as well.
QUESTION:
Minister, you know, this technology is very new to Australia, especially nuclear technology. You know, we’re hearing reports from the industry saying, you know, feasibly if we want to get these vessels quickly, one or two of them might have to be built overseas before we start ramping up production here. Is that something you’re considering? And how much… there was a 60 per cent commitment to be spent in Australia with the Naval group. Can you give that guarantee with this new AUKUS deal?
PETER DUTTON:
Look, a couple points to make. When you look at the capacity constraints within the UK and the US system – so they’re our two partners as you know on AUKUS – the United States hasn’t shared their nuclear technology with any country since 1958 – when they shared it with the UK – and what it means is more jobs here in Australia because we need to construct here – and that’s why the US and the UK have been so interested in the actual built-in environment here in South Australia, and why they support our plans to triple the size of our land holdings here, because I think they see some capability here in Australia that we can build, that can complement their own abilities.
QUESTION:
So you’re saying we will build some of that over there? And can you tell us what percentage of it will be built here in Adelaide?
PETER DUTTON:
In fact, I’m saying the opposite of that. I’m saying that there is capacity constraints within the US and the UK systems at the moment and I think there is a great capability here in Australia already, but what you’ll see grow here in South Australia – and across the rest of the country – to provide support to the US fleet and to the UK fleet. There’s going to be as the threat environment escalates here in the Indo-Pacific, a greater presence of the US and UK and Japanese vessels for example. The Japanese, the Indians have all been very clear about their concerns, NATO has been clear about their concern in the Indo-Pacific. So we will see more, not less, being built here in Australia.
I’m very confident in the discussions we’ve had with the US and the UK that, you know, I just think there is more blue sky here than what people realise. Huge opportunities for South Australia, thousands of jobs into the future, and that is evidenced by our commitments you’re seeing here today.
QUESTION:
You’ve been really critical on Labor’s handling of the economy, but we found out in Senate Estimates $5.5 billion is what’s slated to be paid to Naval Group…
PETER DUTTON:
No, it’s not…
QUESTION:
…can you confirm that’s how much it is? And whether you’ll be paying it by the end of the financial year?
PETER DUTTON:
No, no, it’s not – I mean that’s a line that’s come from Labor, but…
QUESTION:
…It was from Senate Estimates actually…
PETER DUTTON:
No it wasn’t actually. If you look at what was said in Senate Estimates there is a massive contingency within that sum, some of that money is also being used elsewhere within different programs.
QUESTION:
So it’s not all going to the compensation?
PETER DUTTON:
It is absolutely not and I’ve been clear about that. Now, the only other point I’d make is that there are commercially sensitive negotiations that are going on with the company at the moment, so I’m not going to prejudice that with what money is in what pool.
QUESTION:
Don’t you think taxpayers, you know, deserve to know how much is being spent for no delivery?
PETER DUTTON:
Yes of course.
QUESTION:
How much is it then?
PETER DUTTON:
Well, the negotiations are underway at the moment. So once those figures have been settled, then we’ll provide that information, but at the moment they’re in negotiations with those companies.
QUESTION:
Will that be resolved before or after the election?
PETER DUTTON:
It’ll be after the election, it will take some time.
QUESTION:
Before the end of financial year?
PETER DUTTON:
Well, likely not. Again I’m not going to prejudice – and you see what happens in a commercial negotiation, is if the other side knows that you’ve got a hard deadline, then they’ll hold you over a barrel. That’s how Labor used to mismanage programs, we’re not going to do that.
We’ve got a prudent amount put aside, we’ll have the negotiations and we’ll conduct all that. But what became apparent to us in 2016 was that there was no nuclear powered submarine option available to us.
I’d love to be here in Osborne today, smashing a champagne bottle on the side of a new submarine that Labor had ordered; but of course they didn’t commission one. They took money from Defence, they took jobs out of South Australia, they took jobs out of Defence industry – and out of Defence itself – across the country.
If they were in power today, spending at the same level they did when they were last in government, there’d be about $10 billion a year less being spent in Defence.
So what we’re doing here at Osborne and within Defence industry across the country is quite remarkable, but it is just the start.
We have an incredible opportunity because we have managed the budget well. The economy is strong and if you want have a stronger future, you have to have a strong economy. That’s what we’ve presided over even during the course of COVID.
I mean Australia is one of the most remarkable positions compared to any country in the world and if you want to build these submarines, if you want to keep Australia safe and to keep our country strong, then you need to have a strong budget and a strong economy.
QUESTION:
Our contractors. Can you give the local contractors a guarantee of what percentage is going to be locally made?
PETER DUTTON:
Well, we’re in discussions with the US and the UK at the moment. We don’t know which vessel we’re going to go with, but we’ll make that announcement soon. So that will influence the decision as to what quantity is to be built locally, what local content we can have, but it’s been a deliberate policy of the Coalition Government to increase as much as humanly possible, the amount of local content because we know already there are about 100,000 people employed in South Australia and across the rest of the country in Defence industry.
The multiplier back into our economy for the money that we’re investing – the sheds that are built, the land that’s acquired, the renovation on whatever asset it is, the apprentices that are employed, the R&D – I mean it’s a phenomenal economic multiplier, and it’s part of the success that we presided over and it’s helped us through the course of COVID.
QUESTION:
So when does construction start on the first of the submarines here?
PETER DUTTON:
We will make that announcement, as I say, the negotiations are underway with the US and the UK at the moment, incredibly productive. I was very pleased that they were out here only a few weeks ago in South Australia to look at what we have on offer. They were impressed, I’ve got to say, and I think it would give rise to the incredible opportunity to work together to create those jobs – and we’ll make that announcement when we when we’ve got the decision made on which boat we’re going with.
QUESTION:
To this technology announcement today, that was flagged last year, this new technology, why has it taken the Government so long to sign off on that? And are you playing politics by announcing this on Election eve?
PETER DUTTON:
No, I think today is a further statement that we’re committed to jobs in South Australia, that we’re committed to growing the Defence industry here in South Australia. We’re committed to keeping our country safe. We’ve got investment into the growth of the Australian Defence Force, which will be evident here in South Australia and elsewhere.
I think we’ve put our money where our mouth is in terms of providing support to industry, but to acquiring the capability we need in a very uncertain time to keep us safe.
QUESTION:
Why wasn’t it was signed off last year?
PETER DUTTON:
It was signed off once we were able to negotiate with the company, companies involved. And we’ve made the decision. And I mean there’s no departure from the normal process for that.
QUESTION:
Minister, I know you can’t exactly say what proportion, but it was a 60 per cent guarantee in Australia under the previous contract. Can you at least commit that it won’t be less than that for this new contract?
PETER DUTTON:
I’ll tell you a couple of things; one is that…
QUESTION:
…so you can’t guarantee that it won’t be less though?
PETER DUTTON:
I’ll tell you a couple of things. The first is that if you want money spent in South Australia, on defence industry, on submarines, on our frigates, on our offshore patrol vessels and every other class; you’ll get that under a Morrison Government because we’ve managed the budget well, we’ve got the money there to spend here in South Australia.
Labor always finds a higher priority than defence when they’re in government. That is true from the Rudd-Gillard years. It was true before that in the Hawke-Keating years; it was true before that in the Whitlam years.
Let’s look at reality here; if you want jobs in South Australia and you want money spent here at Osborne, and in the shipbuilding enterprise, then the Coalition will give you that guarantee and we’ll give you the support to local content. I hope that it’ll be higher than 60 per cent. We will have that announcement to make…
QUESTION:
But can you guarantee that it won’t be below…
PETER DUTTON:
…we haven’t yet chosen which boat we’re going to go with and…
QUESTION:
So it could be below 60 per cent, is what you’re saying?
PETER DUTTON:
I think you’ll be very pleasantly surprised. You’re a patient person and we will be able to make that announcement, but I’m not going to announce today which vessel we’re going with.
We’ve got great partners in the US and the UK, and all I’d say to underscore it again today; you don’t see additional submarines like this behind us under a Labor government. They didn’t order any. They didn’t order any frigates. They didn’t order any vessels. And it’s because they spent money elsewhere, and I stripped funding from Defence and that is what Anthony Albanese would do again.
QUESTION:
Minister, the people you’re actually talking to today, their livelihoods are on the line as a result of this decision…
PETER DUTTON:
Well vote for the Coalition…
QUESTION:
…all you can offer them is a promise that the Coalition is going to be better than Labor..
PETER DUTTON:
Yes…
QUESTION:
I think they want something more substantial than that.
PETER DUTTON:
Well, I think if you look behind me, you can see substantial. You can see the money that we’re investing; 1,300 jobs here in the life-of-type extension.
QUESTION:
But this is not the new project…
PETER DUTTON:
That project alone is 1,300 people. So I would say if you’re concerned for your job and you want a bright future in Defence industry, then vote for your Liberal candidate at the next election. Vote for your National candidate at the next election. That’s what I would say to people.
We can look at the track record of Labor – they always promise that they’ll keep borders secure, they promise that they’ll invest into Defence, but they don’t do it – they always find other priorities and that’s exactly what happened when Anthony Albanese was part of the Rudd-Gillard government.
We have invested. We’ve demonstrated our commitment to South Australia, to jobs here, to investment into the local economy here, to keeping our defences strong. That is what we have demonstrated and what we would carry out.
QUESTION:
With respect, you cancelled the contract of the stuff that was going to be built here. That’s why we’re asking, is it going to be 60 per cent? And you haven’t been able to clarify that with us, you can’t guarantee that it won’t be below 60 per cent…
PETER DUTTON:
As I say to you, I would love to be here today commissioning a new vessel that Labor had ordered, but they didn’t order one. So if you are relying on Labor today…
QUESTION:
We’re not talking about Labor, we’re talking about the decision you as the government are making, and you’re just saying you can’t guarantee it won’t be less than 60 percent and that’s what’s frustrated people here who have had to lose their jobs at Naval Group.
PETER DUTTON:
I think the point is under Labor, the local content is zero. Okay, so it’s zero under Labor because they didn’t order any of these vessels. They never ordered – not a single submarine.
QUESTION:
We’re not talking about Labor, we’re talking about your government…
PETER DUTTON:
Well we are, we’re about four weeks out from an election…
QUESTION:
How do you think that your party is tracking it in Boothby, which hangs on a knife edge?
PETER DUTTON:
I think it’s a tight election and we need to win Boothby to keep Scott Morrison as Prime Minister. We need to stop Anthony Albanese from becoming prime minister because it would be a disaster for South Australia because they would strip money from Defence; it would be disaster for the economy more generally and that would be very bad for jobs and for the future defences of our country.
You can’t afford to pay for these things and to make these investments unless you’re running a good budget and making good decisions and we’ve done that.
QUESTION:
If you’re running a good budget and you’re spending $5.5 billion on delivering nothing. I know you have said it’s going to be less than 5.5 million, but can you guarantee it won’t be above that number?
PETER DUTTON:
Yeah, I think I’ve dealt with that pretty comprehensively.
QUESTION:
So you’re definitely saying it won’t be more than $5.5 billion?
PETER DUTTON:
I said it’s much, much less. I don’t know how you know take that to more…
QUESTION:
You said it’s not complete…
PETER DUTTON:
There’s a contingency there and it will be miles more than what we require.
QUESTION:
On the cashless debit card. Labor says that your Government is going to roll it out to pensioners across the country. Is that a policy you’re going to pursue?
PETER DUTTON:
I note this morning that the Labor Party is refusing to comment on this, yet they’re putting out propaganda, scaring older Australians.
I know in 2016, older Australians were ringing my office in tears with Labor’s “Mediscare” campaign, they were getting robo-calls if you might remember.
Labor shamelessly went out there and told lies to older Australians, and that’s exactly what they’re doing because of their desperation in this election.
I think it speaks a lot to Mr Albanese’s character that he is out there lying to older Australians; to pensioners, pretending to them that something is going to happen which is not.
We have been very clear that this welfare card is designed to target younger people on unemployment benefits, so that money can’t be spent on alcohol and drugs, that can be spent on their essential needs and on their kids.
For Labor to be out there spruiking this today, putting it out on social media and then refusing to comment on it because they know it’s a lie, and they’ve been called out on it. I think actually is quite disgraceful. Thank you very much.
[ends]