Chapter 1Budget Estimates 2023-24
Reference
1.1On 9 May 2023, the Senate referred the following documents to the Senate Foreign Affairs, Defence and Trade Legislation Committee (the Committee) for examination and report:
Particulars of proposed expenditure in respect of the year ending on 30 June 2024.
Particulars of certain proposed expenditure in respect of the year ending on 30 June 2024.
Particulars of proposed expenditure in relation to the parliamentary departments in respect of the year ending on 30 June 2024.
Particulars of proposed additional expenditure in relation to the parliamentary departments in respect of the year ending on 30 June 2023.
Particulars of proposed additional expenditure in respect of the year ending on 30 June 2023 [Appropriation Bill (No. 3) 2022-2023].
Particulars of certain proposed additional expenditure in respect of the year ending on 30 June 2023 [Appropriation Bill (No. 4) 2022-2023].
1.2A reporting date of Tuesday, 27 June 2023 was set for the Committee to report on its consideration of the 2023-24 Budget Estimates.
Portfolio coverage
1.3The Committee has responsibility for examining the expenditure and outcomes of the following:
Defence Portfolio (including Veterans' Affairs); and
Foreign Affairs and Trade Portfolio.
Portfolio Budget Statements 2023-24
1.4The Portfolio Budget Statements for 2023-24 for the Defence Portfolio, the Department of Veterans' Affairs, and the Foreign Affairs and Trade Portfolio were tabled in the Senate on 9 May 2023.
Hearings
1.5The Committee conducted public hearings from 30 May–2 June 2023.
1.6On 30 May 2023, the Committee examined the Department of Defence (Defence), Australian Signals Directorate (ASD), and the Inspector-General of the Australian Defence Force. The Committee received evidence from Senator the Hon Jenny McAllister, representing the Minister for Defence.
1.7The committee released Defence Housing Australia and the Director of Military Prosecutions without questioning.
1.8On 31 May 2023, the Committee examined the Department of Defence, Department of Veterans’ Affairs (DVA), and the Australian War Memorial (AWM). The Committee received evidence from Senator the Hon Jenny McAllister, representing the Minister for Defence and the Minister for Veterans’ Affairs.
1.9On 1 June 2023, the Committee examined the non-trade programs of the Department of Foreign Affairs and Trade. The Committee received evidence from Senator the Hon Malarndirri McCarthy, representing the Minister for Foreign Affairs and Senator the Hon Don Farrell, Minister for Trade and Tourism.
1.10On 2 June 2023, the Committee examined the trade programs of the Department of Foreign Affairs and Trade, Export Finance Australia, the Australian Centre for International Agricultural Research, the Australian Trade and Investment Commission (Austrade), and Tourism Australia. The Committee received evidence from Senator the Hon Don Farrell, Minister for Trade and Tourism.
1.11The Committee expresses its appreciation for the assistance of the Ministers and officials who appeared.
Questions on notice and Hansard transcripts
1.12In accordance with Standing Order 26(9)(a), the Committee set 14 July 2023 as the due date for responses to questions taken on notice at the hearings. The Committee set the report tabling date of 27 June 2023 as the due date for written questions on notice.
1.13The transcripts of these public hearings, answers to questions on notice and additional information are available on the Committee’s website at:
https://www.aph.gov.au/Parliamentary_Business/Senate_estimates/fadt/2023-24_Budget_estimates
1.14In this report references to Hansard page numbers are to the proof transcripts. Page numbers may vary between the proof and official Hansard transcript.
Defence Portfolio, 30 May 2023
Department of Defence
1.15Topics examined during the hearing included:
A loss of defence strategic warning time, and the effects of this on defence planning (pp. 6–7)
Reprioritisation of Department of Defence funding (pp. 7–12, 29–32)
Defence contracts with PricewaterhouseCoopers (PWC)(pp. 12–16, 25–27, 38–39, 49–52)
Potential application of the United States' 'Leahy Law' in relation to Australian soldiers (pp. 16–18, 71–72)
Modernisation of the Chinese naval fleet (pp. 18–20, 32–33, 43–44)
Projects receiving funding as part of the government’s commitment to addressing recommendations of the Defence Strategic Review (pp. 20–25)
Removal of veterans’ medals and awards (pp. 27–29, 40–43, 52–54)
Regulatory barriers to the AUKUS agreement (pp. 33–35)
Long-range strike capabilities (pp. 35–38, 48–49)
Provision of self-propelled howitzers (pp. 44–47)
Selection processes for Special Air Service Regiment troops and 2nd Commandos (pp. 54–55)
Defence force posture and preparedness in Northern Australia (pp. 56–61, 72–75)
Territorial disputes in the South China Sea (pp. 63–65)
Delayed and cancelled defence projects (pp. 65–69)
Review of command accountability (pp. 69–71)
AUKUS Pillar II projects (pp. 75–78)
Per- and poly-fluoroalkyl substance (PFAS) contamination in food (pp. 79–82)
Domestic manufacturing of war stock (pp. 84–86)
Support infrastructure and arrangements for nuclear submarines at HMAS Stirling (pp. 87–90)
Production timelines of AUKUS SSN submarines (pp. 90–93)
Guided weapons and explosive ordnance projects (pp. 94–97)
Australian Signals Directorate
1.16Topics examined during the hearing included:
Adjustments to ASD budget allocations (pp. 97–99)
Cyber-attacks attributed to the People's Republic of China (pp. 99–100, 103)
Use of artificial intelligence platforms (pp. 101–102)
Agency retention rates (pp. 103–106)
The Hack the Hackers taskforce (pp. 106–108)
Inspector-General of the Australian Defence Force
1.17Topics examined during the hearing included:
Techniques used during interviews conducted by the Office of the SpecialInvestigator and the Office of the Inspector-General of the Australian Defence Force (pp. 109–110, 112–113)
Inquiries into deaths in service of Australian Defence Force (ADF) members (pp. 111)
Defence Portfolio, 31 May 2023
Department of Defence
1.18Topics examined during the hearing included:
Operation Resolute in partnership with Operation Sovereign Borders (pp. 4–7)
Removal of Dahua cameras from defence sites and the Defence Industry Security Program (pp. 7–9)
Defence's approach to capability acquisition (pp. 9–11)
Types of submarines to be transferred to Australia as part of the AUKUS deal; (pp. 11–13)
Defence workforce recruitment targets (pp. 13–16, 22–25)
Processes leading to the grounding of drones manufactured by DJI (pp. 16–19)
Funding and support committed and delivered to Ukraine (pp. 20–22, 30–33, 37–43)
Submarine maintenance (pp. 25–28, 43)
The Advanced Strategic Capabilities Accelerator (pp. 28–30)
Security implications of climate change (pp. 33–35)
Defence procurement of Hunter class frigates (pp. 35–37, 43–45, 67–68)
Availability of Collins class submarines (pp. 45–48)
Potential conversion of Army vehicles to run on electricity (pp. 49–50)
Potential application of the United States' 'Leahy Law' in relation to Australian soldiers (pp. 50–53, 59–60)
Issues with security clearances and vetting (pp. 54–56)
Review of defence industry policy (pp. 56–58)
Appointment of Ms Katherine Campbell as head of theAdvanced Strategic Research Agency (pp. 61–63)
Independent review of the Surface Combatant Force (pp. 64–67)
Access to the PMKeyS record management system (pp. 68–69)
Department of Veterans’ Affairs
1.19Topics examined during the hearing included:
Updates on the backlog of DVA claims (pp. 75–76, 80–85, 94–96)
Funding for the Veteran Employment Program (pp. 76–77)
Consultation into the Veterans' Legislation Reform Consultation Pathway (pp. 77–80)
Rollout of Veteran White Cards (pp. 85, 92–93)
Potential for an indigenous Voice to advise DVA on matters concerning veterans (pp. 85–87)
Funding and locations for Defence Veteran Hubs (pp. 87–88, 90–92)
Chaplaincy programs to assist veterans in transition from the ADF (pp. 89)
Provision of trauma-informed care programs for veterans (pp. 89–90)
Work of the Veteran Family Advocate Commissioner (pp. 96–98, 104)
Funding for the Veterans' Employment Program (pp. 99–101)
Education support payments for veterans (pp. 101–103)
DVA contracts held with PWC (pp. 104–106)
Administration of the unmarked graves in WWI program (pp. 106–107)
Australian War Memorial
1.20Topics examined during the hearing included:
Planned memorial for the Frontier Wars (pp. 109–114, 118)
Employment of visitor services officers through labour hire companies (pp. 115–118)
Status of the AWM's redevelopment project (pp. 117)
AWM contracts entered into with Boeing (pp. 118–122)
Foreign Affairs and Trade Portfolio, 1 June 2023
Department of Foreign Affairs and Trade (non-trade programs)
1.21Topics examined during the hearing included:
Update of the department's organisational structure (pp. 5–7)
The department’s internal ten-year future capability plan (pp. 8–9)
Funding to enhance Australia’s diplomatic footprint overseas (pp. 9–12)
Assistance for Australians departing Sudan due to recent conflict (pp. 12–15, 37–39)
Sport diplomacy in Australian international relations (pp. 15–22)
Mr Julian Assange’s imprisonment conditions (pp. 22–23)
Steps being taken to ensure products produced by forced labour and modern slavery don’t infiltrate the Australian market (pp. 23–24)
Humanitarian assistance provided to Ukraine (pp. 24–27)
Relocation of Australian Embassy in Ukraine (pp. 27–29)
Iranian regime human rights violations (pp. 29–30)
Afghan Locally Engaged Employee Program (pp. 30–31, 50–51)
Post-pandemic China-Australia economic cooperation forum (pp. 31–33)
Cyber sanctions under the Magnitsky framework (pp. 33–35)
Human rights issues in India (pp. 35–36)
Cambodian diaspora community concerns regarding foreign interference in Australia (pp. 36–37)
Meetings with the Japanese Embassy regarding climate change in relation to gas policy (pp. 39)
Proposed new Russian embassy (pp. 40–42)
Australian representation at NATO meetings (pp. 42–47)
Negotiations for a bilateral security treaty between Australia and PapuaNew Guinea (pp. 47–48)
Progress towards ratification of a security agreement with Vanuatu (pp. 48–50)
Australian's travelling to Ukraine to engage in the war (pp. 51–57)
The role of the Australian Embassy in Washington in relation to AUKUS (pp. 57–60)
Aid budget allocations (pp. 60–65)
Humanitarian assistance to Ukraine (pp. 65, 69)
Cultural and linguistic diversity strategy (pp. 65–67)
The COP27 Loss and Damage Fund (pp. 67–69)
Trade relations with China (pp. 70–74, 84–87, 95–97)
Funding for programs aimed at enhancing Pacific engagement (pp. 69–70, 74–76)
Sanctions against Iran and Iranian individuals (pp. 81–84)
Consular support provided to individuals detained in various countries including Vietnam, Pakistan, and Bangladesh (pp. 77–81, 87–89)
Efforts to engage with groups reaching displaced peoples in Myanmar(pp. 89–93)
Lobbying of the Palestinian Authority for removal of material from textbooks (pp. 93–95)
Foreign Affairs and Trade Portfolio, 2 June 2023
Department of Foreign Affairs and Trade (trade programs)
1.22Topics examined during the hearing included:
Negotiations over a trade agreement with the European Union (pp. 3–6)
Terms used for food and drink products in trade agreements (pp. 6–11)
Improving trade relations with China (pp. 11–14, 17–20)
Live exports to the Middle East and North Africa (pp. 14–17)
Requests for membership of the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP) (pp. 20–21)
Australia-India comprehensive economic partnership (pp. 21–23)
Gas exports to South Korea (pp. 23–27)
Export Finance Australia
1.23Topics examined during the hearing included:
Investor-state dispute settlement provisions in free trade agreements (pp. 27–29)
Allocation of funding under the Critical MineralsFacilitation Office and Australian Defence Export Office (pp. 29–32)
Australian Centre for International Agricultural Research
1.24Topics examined during the hearing included:
Assessment of potential projects to be undertaken (pp. 32–33)
Current biosecurity projects (pp. 33–34)
Australian Trade and Investment Commission
1.25Topics examined during the hearing included:
The reprioritisation of export and development grants (pp. 34–38)
Trade diversification opportunities (pp. 38–39)
Investment by foreign owned companies in Australia (pp. 39–40)
Cut in Austrade funding (pp. 40–44)
Simplified Trade Systems reforms (pp. 44–46)
Tourism Australia
1.26Topics examined during the hearing included:
Return to pre-pandemic levels of overseas travellers (pp. 46–51)
G'day Australia tourism campaign (pp. 51)
Senator Raff Ciccone
Chair