Footnotes

Footnotes

Executive Summary

[1]        'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-boosting-australias-maritime-capabilities/

Chapter 1 - Introduction

[1]        Foreign Affairs, Defence and Trade References Committee, Procurement procedures for Defence capital projects, Preliminary report, December 2011, p. xiii.

[2]        National Commission of Audit, Towards responsible government, Appendix to the report of
the national commission of audit—volume 1, 9.8 Defence and national security, p. 9 of 21, http://www.ncoa.gov.au/report/appendix-vol-1/9-8-defence-and-national-security.html  (accessed 8 August 2014).

[3]        See Foreign Affairs, Defence and Trade Committee, Blue water ships: consolidating past achievements, December 2006. Chapters 3 and 4 provide a brief history of Australia's naval shipbuilding industry.

[4]        See Foreign Affairs, Defence and Trade References Committee, Procurement procedures for Defence capital projects, Final report, August 2012, paragraph 2.34.

[5]        See Foreign Affairs, Defence and Trade References Committee, Procurement procedures for Defence capital projects, Final report, August 2012. Chapter 2 gives a detailed account of the Super Seasprite, Landing Watercraft, Guided Missile Frigate Upgrade, Lightweight Torpedo Replacement and the Collins Class Submarine Reliability and Sustainability projects.

[6]        The projects of concern list was established in 2008 to focus the attention of the highest levels of government, Defence and industry on remediating problem projects. The Hon Stephen Smith, Minister for Defence, and the Hon Jason Clare MP, Minister for Defence Materiel, 'Projects of Concern—Update', 15 October 2010.

[7]        Senate Hansard, 6 March 2014, p. 1089.

[8]        House of Representatives Hansard, 17 March 2014, pp. 1987–1995.

[9]        'Minister for Finance and Minister for Defence—Joint Press Conference—Review of the Air Warfare Destroyer program', 4 June 2014, p. 10, http://www.minister.defence.gov.au/2014/06/04/minister-for-defence-and-minister-for-finance-joint-press-conference-review-of-the-air-warfare-destroyer-program/ (accessed 4 August 2014).

[10]      'Minister for Finance and Minister for Defence—Joint Press Conference—Review of the Air Warfare Destroyer program', 4 June 2014, p. 10.

[11]      'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-boosting-australias-maritime-capabilities/ (accessed 4 August 2014).

[12]      'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014.

Chapter 2 - Proposed acquisition of two replenishment ships

[1]        For example, see AMWU, Submission 4, p. 2; Andrew Davies, 'Shipbuilding and maritime projects', May 2014, Australian Strategic Policy Institute, http://web.archive.org/web/20140304100249/http://www.aspistrategist.org.au/shipbuilding-and-maritime-projects/# and Defense Industry Daily, 'Australia's Next Supply Ships: Serious about Success', 8 June 2014, http://www.defenseindustrydaily.com/australias-supply-ships-serious-about-success-024674/ (accessed 5 August 2014).

[2]        See for example, Navy, HMAS Sirius, https://www.navy.gov.au/hmas-sirius (accessed 6 August 2014).

[3]        For a full account of the regulatory changes and implications for HMAS Westralia, see DMO, Getting Sirius A Project Manager's Story, the acquisition and modification of an auxiliary oiler HMAS Sirius, 2008, pp. 19–21.

[4]        Defence 2000: Our Future Defence Force, Defence White Paper 2000, p. 90, http://www.defence.gov.au/publications/wpaper2000.pdf  (accessed 8 August 2014).

[5]        Navy, 'HMAS Sirius', https://www.navy.gov.au/hmas-sirius (accessed 6 August 2014).

[6]        Australian National Audit Office, Audit Report No.20 2006–07, Performance Audit, Purchase, Chartering and Modification of the New Fleet Oiler, Department of Defence, Defence Materiel Organisation, p. 13, http://anao.gov.au/~/media/Uploads/Documents/2006%2007_audit_report_20.pdf (accessed 6 August 2014).

[7]        Australian National Audit Office, Audit Report No.20 2006–07, Performance Audit, Purchase, Chartering and Modification of the New Fleet Oiler, Department of Defence, Defence Materiel Organisation, p. 13.

[8]        See AMWU, Submission 4, p. 2; Andrew Davies, 'Shipbuilding and maritime projects' May 2014, ASPI, http://web.archive.org/web/20140304100249/http://www.aspistrategist.org.au/shipbuilding-and-maritime-projects/# and Defense Industry Daily, 'Australia's Next Supply Ships: Serious about Success', 8 June 2014, http://www.defenseindustrydaily.com/australias-supply-ships-serious-about-success-024674/ (accessed 5 August 2014).

[9]        Navy website http://www.navy.gov.au/hmas-success-ii (accessed 6 August 2014).

[10]      Navy website, http://www.navy.gov.au/hmas-success-ii (accessed 6 August 2014).

[11]      Navy website, http://www.navy.gov.au/hmas-success-ii (accessed 6 August 2014).

[12]      Defence 2000: Our Future Defence Force, Defence White Paper 2000, p. 90,  http://www.defence.gov.au/publications/wpaper2000.pdf (accessed 8 August 2014). 

[13]      Department of Defence, Defence White Paper 2013, paragraph 8.59, http://www.defence.gov.au/whitepaper2013/docs/WP_2013_web.pdf  (accessed 8 August 2014).

[14]      Department of Defence, Defence White Paper 2013, paragraph 8.59, http://www.defence.gov.au/whitepaper2013/docs/WP_2013_web.pdf  (accessed 8 August 2014).

[15]      Department of Defence, Defence White Paper 2013, paragraph 12.56.

[16]      Department of Defence, Defence Capability Development Handbook 2014, paragraph 2.2.4, http://www.defence.gov.au/publications/docs/Defence%20Capability%20Development%20Handbook%20(DCDH)%202014%20-%20internet%20copy.pdf (accessed 8 August 2014).

[17]      Department of Defence, Defence Capability Development Handbook 2014, paragraph 2.2.7.

[18]      Department of Defence, Defence Capability Plan, public version 2012, p. 1, http://www.defence.gov.au/publications/CapabilityPlan2012.pdf (accessed 8 August 2014).

[19]      Department of Defence, Defence Capability Plan 2012, public version, p. 244, http://www.defence.gov.au/publications/CapabilityPlan2012.pdf (accessed 8 August 2014).

[20]      Department of Defence, Defence Capability Plan 2012, public version, p. 244.

[21]      Department of Defence, Defence Capability Plan 2012, public version, p. 244.

[22]      Department of Defence, Defence Capability Plan 2012, public version, p. 244.

[23]      Department of Defence, Defence Capability Development Handbook 2014, paragraph 3.4.43, http://www.defence.gov.au/publications/docs/Defence%20Capability%20Development%20Handbook%20(DCDH)%202014%20-%20internet%20copy.pdf (accessed 8 August 2014).

[24]      Department of Defence, Defence Capability Development Handbook 2014, p. 121.

[25]      'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-boosting-australias-maritime-capabilities/ (accessed 6 August 2014).

[26]      Department of Defence, Defence Capability Development Handbook 2014, p. 121.

[27]      'Minister for Defence—Transcript—Naval shipbuilding announcement', CEA Technologies, Canberra, 6 June 2014, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-transcript-naval-shipbuilding-announcement/ (accessed 4 August 2014).

Chapter 3 - Role of central agencies

[1]        Department of Defence, Defence Capability Development Handbook 2014, paragraph 3.2.15n, http://www.defence.gov.au/publications/docs/Defence%20Capability%20Development%20Handbook%20(DCDH)%202014%20-%20internet%20copy.pdf (accessed 8 August 2014).

[2]        Department of Defence, Defence Capability Development Handbook 2014, paragraphs 1.5.8–1.5.13.

[3]        Department of Defence, Defence Capability Development Handbook 2014, paragraph 1.6.7.

[4]        Department of Defence, Defence Capability Development Handbook 2014, paragraph 1.6.8.

[5]        Department of Defence, Defence Capability Development Handbook 2014, paragraph 3.2.15n.

[6]        Department of Defence, Defence Capability Development Handbook 2014, paragraph 1.6.9, http://www.defence.gov.au/publications/docs/Defence%20Capability%20Development%20Handbook%20(DCDH)%202014%20-%20internet%20copy.pdf (accessed 8 August 2014).

[7]        Department of Defence, Defence Capability Development Handbook 2014, paragraph 1.6.10.

[8]        Department of Defence, Defence Capability Development Handbook 2014, paragraph 3.6.2.

[9]        Department of Defence, answer to question on notice No. 3.

[10]      Committee Hansard, 21 July 2014, p. 18.

[11]      Department of Defence, answer to question on notice No. 22.

[12]      Department of Defence, answer to question on notice No. 21.

[13]      Submission 14, p. 2.

[14]      Department of Defence, Defence Capability Development Handbook 2014, paragraph 3.6.6, http://www.defence.gov.au/publications/docs/Defence%20Capability%20Development%20Handbook%20(DCDH)%202014%20-%20internet%20copy.pdf  (accessed 8 August 2014).

[15]      Committee Hansard, 21 July 2014, p. 3.

[16]      Commonwealth Procurement Rules, July 2014, see paragraph 9.7 for procurement thresholds, http://www.finance.gov.au/sites/default/files/2014%20Commonwealth%20Procurement%20Rules.pdf (accessed 8 August 2014).

[17]      Committee Hansard, 21 July 2014, p. 12.

[18]      Department of Defence, Defence Procurement Policy Manual, p. 3.1–1, http://www.defence.gov.au/dmo/multimedia/dppm-9-5247.pdf (accessed 8 August 2014).

[19]      Department of Defence, Defence Procurement Policy Manual, glossary–13 and also p. 3.1–5, http://www.defence.gov.au/dmo/multimedia/dppm-9-5247.pdf (accessed 8 August 2014).

[20]      Department of Defence, Defence Procurement Policy Manual, p. 3.1–5.

[21]      Department of Finance, Commonwealth Procurement Rules, July 2014 (emphasis in original).

[22]      Submission 14, p. 2.

[23]      See Finance and Public Administration References Committee, Commonwealth procurement procedures, July 2014, Appendix 3.

[24]      Committee Hansard, 21 July 2014, p. 13.

[25]      Committee Hansard, 21 July 2014, p. 15.

[26]      Committee Hansard, 21 July 2014, p. 18.

[27]      Committee Hansard, 21 July 2014, p. 5.

[28]      Committee Hansard, 21 July 2014, p. 13.

[29]      See Australia–United States Free Trade Agreement—Guide to the Agreement, Chapter 15, Government Procurement, http://www.dfat.gov.au/fta/ausfta/guide/15.html (accessed 8 August 2014).

[30]      Department of Defence, Defence Procurement Policy Manual, p. 2.1–4, http://www.defence.gov.au/dmo/multimedia/dppm-9-5247.pdf (accessed 8 August 2014).

[31]      Department of Defence, Defence Procurement Policy Manual, paragraph 27, p. 1.2–5, According to Mr Sheridan paragraph 27 lists the things which are carved out under article 22.2 of the Australia–United States Free Trade Agreement, which refers to essential security. Committee Hansard, 21 July 2014, p. 2. There is a list of some 25 categories of the procurement of goods which utilise that carve-out. Article 22.2—Essential Security—stipulates that nothing in the Agreement shall be construed:

                             •            to require a Party to furnish or allow access to any information the disclosure of which it determines to be contrary to its essential security interests; or

                             •            to preclude a Party from applying measures that it considers necessary for the fulfilment of its obligations with respect to the maintenance or restoration of international peace or security, or the protection of its own essential security interests.

http://www.dfat.gov.au/fta/ausfta/final-text/chapter_22.html (accessed 8 August 2014).

[32]      Mr John Sheridan, Committee Hansard, 21 July 2014, p. 2.

[33]      Mr John Sheridan and Mr John Edge, Committee Hansard, 21 July 2014, pp. 7 and 10.

[34]      Committee Hansard, 21 July 2014, p. 2.

[35]      Department of Finance, answer to question on notice No. 1, p. 4 in Submission 14.

[36]      Committee Hansard, 21 July 2014, p. 7.

[37]      Committee Hansard, 21 July 2014, p. 9.

[38]      Committee Hansard, 21 July 2014, p. 5.

[39]      Committee Hansard, 21 July 2014, p. 6.

[40]      Committee Hansard, 21 July 2014, p. 13.

[41]      Committee Hansard, 21 July 2014, p. 13.

[42]      Submission 14, p. 2.

[43]      Department of Defence, Defence Capability Development Handbook 2014, paragraph 3.6.8, http://www.defence.gov.au/publications/docs/Defence%20Capability%20Development%20Handbook%20(DCDH)%202014%20-%20internet%20copy.pdf (accessed 8 August 2014).

[44]      Department of Defence, Defence Capability Development Handbook 2014, paragraph 3.6.8.

[45]      Department of Finance, Submission 14, p. 2.

Chapter 4 - Capacity

[1]        'Minister for Defence—Transcript—Naval shipbuilding announcement', CEA Technologies, Canberra', 6 June 2014, p. 4,  http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-transcript-naval-shipbuilding-announcement/ (accessed 6 August 2014).

[2]        'Minister for Defence—Transcript—Naval shipbuilding announcement, CAE Technologies, Canberra', 6 June 2014, p. 4.

[3]        'Minister for Defence—Transcript—Naval shipbuilding announcement, CAE Technologies, Canberra', 6 June 2014, p. 4.

[4]        Australian National Audit Office, Report No.15 2012–13, Assurance Report, 2011–12 Major Projects Report, pp. 260–261, http://www.defence.gov.au/dmo/Multimedia/201213%20Audit%20Report%20No%2015_DMO.pdf (accessed 8 August 2014).

[5]        Department of Defence, answer to question on notice No. 10.

[6]        Thales Australia website, 'Thales to continue operating Sydney's Garden Island', 21 July 2014, https://www.thalesgroup.com/en/australia/press-release/thales-continue-operating-sydneys-garden-island (accessed 6 August 2014).

[7]        Austal website, Overview, http://www.austal.com/en/about-austal/Overview.aspx (accessed 6 August 2014).

[8]        'Armidale Class Patrol Boat, Australia', www.naval-technology.com/projects/armidaleclass/ and see Department of Defence, Future Submarine Industry Skills Plan, A Plan for the Naval Shipbuilding Industry, p. 85, http://www.defence.gov.au/dmo/Multimedia/FSISPWEB-9-4506.pdf (accessed 6 August 2014).

[9]        ASC website, http://www.asc.com.au/ (accessed 6 August 2014).

[10]      Australian Marine Complex, Western Australia, http://www.australianmarinecomplex.com.au/Facilities-&-Precincts/Maritime/ (accessed 6 August 2014).

[11]      Defence SA, 'South Australia the Defence State: Techport Australia', http://www.defencesa.com/precincts/techport-austra (accessed 6 August 2014).

[12]      ASC website, http://www.asc.com.au/en/About-Us/Facilities/South-Australia/ (accessed 6 August 2014).

[13]      BAE Systems Australia website, 'Williamstown Shipyard', http://www.baesystems.com/page/search?sparam=williamstown&_afrLoop=65813366367000&_afrWindowMode=0&_afrWindowId=64p4ape2l_1#%40%3Fsparam%3Dwilliamstown%26_afrWindowId%3D64p4ape2l_1%26_afrLoop%3D65813366367000%26_afrWindowMode%3D0%26_adf.ctrl-state%3D64p4ape2l_85 (accessed 6 August 2014).

[14]      Department of Defence, Landing Helicopter Dock Ship Sustainment Facilities, Garden Island Defence Precinct and Randwick Barracks, Sydney, New South Wales, Statement of Evidence to the Parliamentary Standing Committee on Public Works, March 2013, p. 7. See also 'The Garden Island complex', http://www.gardenisland.info/1-00-000.html (accessed 8 August 2014).

[15]      Forgacs website, http://www.forgacs.com.au/locations/tomago/ (accessed 6 August 2014).

[16]      Forgacs website, http://www.forgacs.com.au/locations/brisbane/ (accessed 6 August 2014).

[17]      Lloyd's List Australia, 'Local: Report, reaction & analysis—Forgacs closes Cairncross shipyard', http://www.lloydslistdcn.com.au/archive/2014/07-july/10/report-reaction-analysis-forgacs-closes-cairncross-shipyard (accessed 8 August 2014).

[18]      See Department of Defence, Future Submarine Industry Skills Plan, A Plan for the Naval Shipbuilding Industry, p. 82, http://www.defence.gov.au/dmo/Multimedia/FSISPWEB-9-4506.pdf  (accessed 7 August 2014).

[19]      See Department of Defence, Future Submarine Industry Skills Plan, A Plan for the Naval Shipbuilding Industry, p. 84.

[20]      Department of Defence, answer to question on notice No. 11.

[21]      Department of Defence, answer to question on notice No. 11.

[22]      See Department of Defence, Future Submarine Industry Skills Plan, A Plan for the Naval Shipbuilding Industry, p. 86, http://www.defence.gov.au/dmo/Multimedia/FSISPWEB-9-4506.pdf (accessed 7 August 2014).

[23]      See Department of Defence, Future Submarine Industry Skills Plan, A Plan for the Naval Shipbuilding Industry, p. 89.

[24]      Committee Hansard, 21 July 2014, p. 14.

[25]      Committee Hansard, 21 July 2014, p. 26.

[26]      Committee Hansard, 21 July 2014, p. 27.

[27]      Committee Hansard, 21 July 2014, p. 27.

[28]      Committee Hansard, 21 July 2014, p. 26.

[29]      Committee Hansard, 21 July 2014, p. 26.

[30]      Committee Hansard, 21 July 2014, p. 17.

[31]      See Department of Defence, Future Submarine Industry Skills Plan, A Plan for the Naval Shipbuilding Industry, pp. 82 and 103, http://www.defence.gov.au/dmo/Multimedia/FSISPWEB-9-4506.pdf (accessed 7 August 2014).

[32]      AMWU, Australian Naval Shipbuilding, Design, Build & Maintain our Ships here, AMWU Paper on Australian Naval Shipbuilding,14 November 2013, p. 9.

[33]      Committee Hansard, 21 July 2014, p. 34.

[34]      Committee Hansard, 21 July 2014, p. 34.

[35]      Submission 1.

[36]      Committee Hansard, 21 July 2014, p. 49.

[37]      Committee Hansard, 21 July 2014, p. 48.

[38]      Committee Hansard, 21 July 2014, p. 49.

[39]      Committee Hansard, 21 July 2014, p. 50.

[40]      Submission 5, p. [2].

[41]      Submission 9, p. 1.

[42]      See Mr Hamilton-Smith, Committee Hansard, 21 July 2014, p. 48.

[43]      Submission 9, p. 2.

[44]      Submission 13, p. 4.

[45]      Submission 13, p. 3.

[46]      See Mr Christopher Burns, Committee Hansard, 21 July 2014, pp. 40 and 42 and the Hon Martin Hamilton-Smith, Committee Hansard, 21 July 2014, p. 50.

[47]      Committee Hansard, 21 July 2014, p. 37.

[48]      Submission 2, p. [1].

[49]      Submission 12, p. [2].

[50]      Submission 12, p. [2].

[51]      Department of Defence, answer to question on notice No. 11.

[52]      Committee Hansard, 21 July 2014, p. 49.

[53]      Committee Hansard, 21 July 2014, p. 52.

[54]      Committee Hansard, 21 July 2014, p. 49.

[55]      Committee Hansard, 21 July 2014, p. 47.

[56]      See for example, Defence SA, Submission 5, p. [2]. 

[57]      Submission 5, p. [2].

[58]      Committee Hansard, 21 July 2014, p. 53.

[59]      Committee Hansard, 21 July 2014, p. 52.

[60]      Committee Hansard, 21 July 2014, p. 53.

[61]      Committee Hansard, 21 July 2014, p. 53.

[62]      Committee Hansard, 21 July 2014, p. 16.

[63]      Department of Defence, answer to question on notice No. 8.

[64]      Committee Hansard, 21 July 2014, p. 24.

[65]      Committee Hansard, 21 July 2014, p. 14.

[66]      Submission 6, p. [2].

[67]      Committee Hansard, 21 July 2014, p. 36.

[68]      Committee Hansard, 21 July 2014, p. 36.

[69]      Committee Hansard, 21 July 2014, p. 42.

[70]      Committee Hansard, 21 July 2014, p. 45.

Chapter 5 - Urgency of acquisition

[1]        See for example, DMO, Getting Sirius A Project Manager's Story: The acquisition and modification of an auxiliary oiler HMAS Sirius, 2008, pp. 3–4 and ANAO, Audit Report No.20 2006–07, Performance Audit, Purchase, Chartering and Modification of the New Fleet Oiler, Department of Defence, Defence Materiel Organisation, p. 13,  http://anao.gov.au/~/media/Uploads/Documents/2006%2007_audit_report_20.pdf   (accessed 6 August 2014).

[2]        'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-boosting-australias-maritime-capabilities/ (accessed 4 August 2014).

[3]        'Minister for Defence—Transcript—Naval shipbuilding announcement, CEA Technologies, Canberra', 6 June 2014, p. 2, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-transcript-naval-shipbuilding-announcement/ (accessed 4 August 2014).

[4]        'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-boosting-australias-maritime-capabilities/ (accessed 4 August 2014).

[5]        'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-boosting-australias-maritime-capabilities/ (accessed 4 August 2014).

[6]        Committee Hansard, 21 July 2014, p. 12.

[7]        Committee Hansard, 21 July 2014, p. 25.

[8]        Committee Hansard, 21 July 2014, p. 12.

[9]        Department of Defence, 'Questions and Responses to David Ellery, the Canberra Times in relation to articles published on 9 April 2012', 9 April 2012, p. 6, http://www.minister.defence.gov.au/2012/04/09/questions-and-responses-provided-to-david-ellery-the-canberra-times-in-relation-to-articles-published-on-9-april-2012/ (accessed 4 August 2014).

[10]      Department of Defence, 'Questions and Responses to David Ellery, the Canberra Times in relation to articles published on 9 April 2012', 9 April 2012, p. 7, http://www.minister.defence.gov.au/2012/04/09/questions-and-responses-provided-to-david-ellery-the-canberra-times-in-relation-to-articles-published-on-9-april-2012/ (accessed 4 August 2014).

[11]      Committee Hansard, 21 July 2014, p. 15.

[12]      Committee Hansard, 21 July 2014, p. 22.

[13]      Committee Hansard, 21 July 2014, p. 15.

[14]      Committee Hansard, 21 July 2014, p. 22.

[15]      Submission 4, p. [2].

[16]      Submission 2, p. [2].

[17]      Submission 12, p. [2].

[18]      Submission 12, p. [2].

[19]      Committee Hansard, 21 July 2014, p. 42.

[20]      Submission 9, p. 1.

[21]      Submission 9, p. 2.

[22]      Committee Hansard, 21 July 2014, p. 19.

[23]      Committee Hansard, 21 July 2014, p. 31.

[24]      Committee Hansard, 21 July 2014, p. 19.

[25]      Committee Hansard, 21 July 2014, p. 19.

[26]      Committee Hansard, 21 July 2014, p. 19.

[27]      Committee Hansard, 21 July 2014, p. 17.

[28]      Committee Hansard, 21 July 2014, p. 17.

[29]      Committee Hansard, 21 July 2014, p. 31.

[30]      Committee Hansard, 21 July 2014, p. 34.

[31]      Committee Hansard, 21 July 2014, pp. 33 and 34.

[32]      Committee Hansard, 21 July 2014, p. 34.

[33]      Committee Hansard, 21 July 2014, p. 33.

[34]      Submission 4, p. [2].

[35]      Committee Hansard, 21 July 2014, p. 34.

[36]      Committee Hansard, 21 July 2014, p. 18.

[37]      Department of Defence, answer to question on notice No. 3.

[38]      Committee Hansard, 21 July 2014, p. 18.

Chapter 6 - Productivity

[1]        'Minister for Defence—Boosting Australia's maritime capabilities', 6 June 2014.

[2]        'Minister for Defence—Transcript—Naval shipbuilding announcement, CEA Technologies, Canberra', 6 June 2014, p. 6, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-transcript-naval-shipbuilding-announcement/ (accessed 4 August 2014).

[3]        Australian National Audit Office, Report No. 12 2013–14, 2012–13 Major Projects Report, December 2013, p. 153, http://www.anao.gov.au/~/media/Files/Audit%20Reports/2013%202014/Assurance%20Report%2012/AssuranceReport-2013-2014_12.pdf (accessed 6 August 2014).

[4]        'Minister for Defence, Minister for Defence Materiel and Minister for Finance and Deregulation—Joint Media Release—Air Warfare Destroyer update', 6 September 2012, p. 3, http://www.minister.defence.gov.au/2012/09/06/minister-for-defence-and-minister-for-defence-materiel-joint-media-release-air-warfare-destroyer-update-2/ (accessed 4 August 2014).

[5]        'Minister for Defence, Minister for Defence Materiel and Minister for Finance and Deregulation—Joint Media Release—Air Warfare Destroyer update', 6 September 2012, p. 3.

[6]        DMO website, 'Air Warfare Destroyer, SEA 4000 Phase 3 Build' http://www.defence.gov.au/dmo/awd/sea4000/ (accessed 6 August 2014).

[7]        See for example, Sarah Martin, The Australian, 'Fears of further delays to the nation's biggest defence project', September 18, 2013, http://www.theaustralian.com.au/national-affairs/policy/fears-of-further-delays-to-the-nations-biggest-defence-project/story-e6frg8yo-1226721296385 (accessed 6 August 2014).

[8]        'Minister for Finance and Minister for Defence—Coalition committed to the efficient delivery of the Air Warfare Destroyer programme', 18 December 2013, http://www.minister.defence.gov.au/2013/12/18/minister-for-finance-and-minister-for-defence-coalition-committed-to-the-efficient-delivery-of-the-air-warfare-destroyer-programme/ (accessed 4 August 2014).

[9]        'Minister for Finance and Minister for Defence—Joint Press Conference—Review of the Air Warfare Destroyer program', 4 June 2014, p. 1, http://www.minister.defence.gov.au/2014/06/04/minister-for-defence-and-minister-for-finance-joint-press-conference-review-of-the-air-warfare-destroyer-program/ (accessed 4 August 2014).

[10]      Senator The Hon. Mathias Cormann, Minister for Finance and Senator The Hon. David Johnston, Minister for Defence, 'Review of the Air Warfare Destroyer Program', MC 6/14, 25 February 2014, http://www.financeminister.gov.au/media/2014/mr_2014-06.html (accessed 4 August 2014).

[11]      See for example, Professional Engineers Australia, 'Minister must boost engineering capacity on the AWD and SEA1000 projects to stop cost blowouts',  http://www.professionalsaustralia.org.au/groups/engineers/advocacy/?id=3060  and Engineers Australia, 'Audit critical of Air Warfare Destroyer project', 6 March 2014, http://www.engineersaustralia.org.au/news/audit-critical-air-warfare-destroyer-project  and HIS Jane's Weekly, 'Australian government auditor slams AWD programme management', 5 March 2014, http://www.janes.com/article/34998/australian-government-auditor-slams-awd-programme-management and Financial Review, 'Audit Slams $8bn warship project', 6 March 2014, http://www.afr.com/p/national/audits_slams_bn_warship_project_KBbPO0n4lw02A79hEUQWDN (accessed 6 August 2014).

[12]      Australian National Audit Office, Audit Report No. 22 2013–14 Performance Audit, Air Warfare Destroyer Program, tabled 6 March 2014, paragraph 21.

[13]      'Report of the Independent Review into the performance of the Hobart Class Air Warfare Destroyer Program conducted by Professor Donald C. Winter and Dr John White', 4 June 2014, http://www.financeminister.gov.au/media/2014/docs/air-warfare-destroyer-program-review-0.pdf  (accessed 8 August 2014).

[14]      'Report of the Independent Review into the performance of the Hobart Class Air Warfare Destroyer Program conducted by Professor Donald C. Winter and Dr John White', 4 June 2014, http://www.financeminister.gov.au/media/2014/docs/air-warfare-destroyer-program-review-0.pdf (accessed 8 August 2014).

[15]      'Minister for Finance and Minister for Defence—Joint Press Conference—Review of the Air Warfare Destroyer program', 4 June 2014, http://www.minister.defence.gov.au/2014/06/04/minister-for-defence-and-minister-for-finance-joint-press-conference-review-of-the-air-warfare-destroyer-program/ (accessed 4 August 2014).

[16]      'Minister for Finance and Minister for Defence—Joint Press Conference—Review of the Air Warfare Destroyer program', 4 June 2014, p. 6.

[17]      'Minister for Finance and Minister for Defence—Joint Press Conference—Review of the Air Warfare Destroyer program', 4 June 2014, p. 8.

[18]      'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-boosting-australias-maritime-capabilities/ (accessed 4 August 2014).

[19]      'Minister for Defence—Boosting Australia’s maritime capabilities', 6 June 2014.

[20]      'Minister for Defence—Transcript—Naval shipbuilding announcement, CEA Technologies, Canberra', 6 June 2014, p. 5, http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-transcript-naval-shipbuilding-announcement/ (accessed 4 August 2014).

[21]      'Minister for Defence—Transcript—Naval shipbuilding announcement, CEA Technologies, Canberra', 6 June 2014, p. 11.

[22]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Committee Hansard, 3 June 2014, p. 50.

[23]      'Minister for Finance and Minister for Defence—Joint Press Conference—Review of the Air Warfare Destroyer program', 4 June 2014, p. 2, http://www.minister.defence.gov.au/2014/06/04/minister-for-defence-and-minister-for-finance-joint-press-conference-review-of-the-air-warfare-destroyer-program/ (accessed 4 August 2014).

[24]      Committee Hansard, 21 July 2014, p. 26.

[25]      Committee Hansard, 21 July 2014, p. 21.

[26]      Committee Hansard, 21 July 2014, p. 21.

[27]      Committee Hansard, 21 July 2014, p. 22.

[28]      Committee Hansard, 21 July 2014, p. 22.

[29]      Committee Hansard, 21 July 2014, p. 40.

[30]      Committee Hansard, 21 July 2014, p. 40. See also Submission 10, p. 3.

[31]      Committee Hansard, 21 July 2014, p. 33.

[32]      Committee Hansard, 21 July 2014, p. 35.

[33]      Mr Glenn Thompson, Committee Hansard, 21 July 2014, p. 33.

[34]      Committee Hansard, 21 July 2014, p. 47.

[35]      Committee Hansard, 21 July 2014, p. 51.

[36]      Submission 9, p. 1.

[37]      Submission 9, p. 2.

[38]      Department of Defence, answer to question on notice No. 13.

[39]      Department of Defence, answer to question on notice No. 13.

[40]      Committee Hansard, 21 July 2014, pp. 13–14.

[41]      Department of Defence, answer to question on notice No. 30.

[42]      Committee Hansard, 21 July 2014, p. 14.

[43]      Committee Hansard, 21 July 2014, p. 14.

[44]      Committee Hansard, 21 July 2014, p. 14.

[45]      Committee Hansard, 21 July 2014, p. 14.

[46]      Department of Defence, answer to question on notice No. 30.

[47]      Committee Hansard, 21 July 2014, p. 35.

[48]      Submission 4, p. [4].

[49]      Committee Hansard, 21 July 2014, p. 34.

[50]      Committee Hansard, 21 July 2014, p. 34.

[51]      Committee Hansard, 21 July 2014, p. 43.

[52]      Committee Hansard, 21 July 2014, p. 43.

[53]      Committee Hansard, 21 July 2014, p. 51.

[54]      Committee Hansard, 21 July 2014, p. 45.

[55]      Mr Kim Gillis, Foreign Affairs, Defence and Trade Committee, Committee Hansard, 18 August 2006, p. 46.

[56]      Foreign Affairs, Defence and Trade Committee, Committee Hansard, 18 August 2006, p. 46.

[57]      Committee Hansard, 21 July 2014, p. 20.

[58]      Committee Hansard, 21 July 2014, p. 20.

[59]      Department of Defence, answer to question on notice No. 31.

[60]      Department of Defence, answer to question on notice No. 14.

[61]      Department of Defence, answer to question on notice No. 14.

[62]      Department of Defence, answer to question on notice No. 31.

[63]      Submission 12, p. [1].

[64]      Department of Defence, answer to question on notice No. 30.

[65]      Department of Defence, answer to question on notice No. 30.

[66]      Submission 12, pp. [1–2].

[67]      Submission 12, p. [3].

[68]      Committee Hansard, 21 July 2014, p. 41.

[69]      Mr Simon Kennedy, Adelaide Ship Construction International and Smart Fabrication, Submission 8, p. 2.

[70]      Mr Simon Kennedy, Adelaide Ship Construction International and Smart Fabrication, Submission 8, p. 2.

[71]      An ASC paper, A Sustainable Australian Naval Industry, issue 1.0, pp. 15 and 19, https://www.asc.com.au/Documents/Speeches/A%20Sustainable%20Australian%20Naval%20Industry.pdf (accessed 7 August 2014).

[72]      Submission 7, p. 2.

[73]      Submission 7, p. 3.

[74]      ACIL Allen Consulting, Naval Shipbuilding & Through Life Support, Economic Value to Australia, ACIL Allen report to Australian Industry Group, December 2013, p. ii.

[75]      Department of Defence, answer to question on notice No. 19.

[76]      Foreign Affairs, Defence and Trade Committee, Blue Water Ship: consolidating past achievements, December 2006, paragraph 10.1.

[77]      Committee Hansard, 21 July 2014, p. 51.

[78]      Committee Hansard, 21 July 2014, p. 52.

[79]      Committee Hansard, 21 July 2014, p. 47.

[80]      For a more detailed discussion on through-life support of Naval ships see Foreign Affairs, Defence and Trade Committee, Blue Water Ships: consolidating past achievements, pp.126–155.

Chapter 7 - National security

[1]        See for example, AMWU, Submission 4, p. [1] and Defence Teaming Centre, Submission 10, p. 4.

[2]        Submission 2, p. [1].

[3]        Committee Hansard, 21 July 2014, p. 44.

[4]        Submission 4, p. [1].

[5]        Submission 4, p. [1].

[6]        Submission 13, p. 2.

[7]        Committee Hansard, 21 July 2014, p. 52.

[8]        Committee Hansard, 21 July 2014, p. 47.

[9]        Committee Hansard, 21 July 2014, p. 48.

[10]      Submission 12, p. [1].

[11]      Submission 12, p. [1].

[12]      Submission 12, p. [1].

[13]      Department of Defence, answer to question on notice No. 17.

[14]      Committee Hansard, 21 July 2014, p. 30.

[15]      Foreign Affairs, Defence and Trade Committee, Blue Water Ships: consolidating past achievements, December 2006, paragraph 7.90.

[16]      Department of Defence, answer to question on notice No. 17.

[17]      Committee Hansard, 21 July 2014, p. 30.

[18]      Submission 12, pp. [2–3].

Chapter 8 - Australian industry involvement

[1]        Department of Defence, Defence Issues Paper 2014, a discussion paper to inform the 2015 Defence White Paper, p. 23.

[2]        Department of Defence, Building Defence Capability: A Policy for a Smarter and More Agile Defence Industry Base, 2010, pp. 7–8.

[3]        Department of Defence, Building Defence Capability: A Policy for a Smarter and More Agile Defence Industry Base, 2010, p. 9.

[4]        Department of Defence, Defence White Paper 2013, paragraph 12.54, http://www.defence.gov.au/whitepaper2013/docs/WP_2013_web.pdf (accessed 8 August 2014).

[5]        The Coalition's Policy for Stronger Defence, September 2013, p. 7, http://www.liberal.org.au/our-policies (accessed 8 August 2014).

[6]        The Coalition's Policy for Stronger Defence, September 2013, p. 7, http://www.liberal.org.au/our-policies.

[7]        The Coalition's Policy for Stronger Defence, September 2013, p. 7, http://www.liberal.org.au/our-policies.

[8]        Committee Hansard, 21 July 2014, p. 50.

[9]        Committee Hansard, 21 July 2014, p. 50.

[10]      Committee Hansard, 21 July 2014, pp. 40–41.

[11]      Committee Hansard, 21 July 2014, p. 41.

[12]      Committee Hansard, 21 July 2014, p. 41.

[13]      Committee Hansard, 21 July 2014, p. 41.

[14]      Committee Hansard, 21 July 2014, p. 40.

[15]      Committee Hansard, 21 July 2014, p. 41.

[16]      AMWU, Australian Naval Shipbuilding: Design, Build & Maintain our ships here, November 2013, p. 4 and Figure 1, p. 15, http://www.amwu.org.au/content/upload/files/Ships_Campaign_13/AA_AUST_NAVAL_SHIPBUILDING.pdf (accessed 16 July 2014).

[17]      Submission 7, p. 4.

[18]      Committee Hansard, 21 July 2014, p. 46.

[19]      Submission 13, p. 2.

[20]      Submission 13, p. 2.

[21]      Department of Defence, Future Submarine Industry Skills Plan, March 2013, pp. 31 and 98.

[22]      Department of Defence, Future Submarine Industry Skills Plan, March 2013, p. 123.

[23]      Department of Defence, Future Submarine Industry Skills Plan, March 2013, p. 31.

[24]      Committee Hansard, 21 July 2014, p. 44.

[25]      Committee Hansard, 21 July 2014, p. 45.

[26]      Committee Hansard, 21 July 2014, p. 48.

[27]      Committee Hansard, 21 July 2014, p. 35.

[28]      Committee Hansard, 21 July 2014, p. 36.

[29]      Committee Hansard, 21 July 2014, p. 36.

[30]      Committee Hansard, 21 July 2014, pp. 33 and 35.

[31]      Committee Hansard, 21 July 2014, p. 34.

[32]      Committee Hansard, 21 July 2014, p. 35.

[33]      Committee Hansard, 21 July 2014, p. 33.

[34]      Committee Hansard, 21 July 2014, p. 33.

[35]      Committee Hansard, 21 July 2014, p. 36.

[36]      Committee Hansard, 21 July 2014, p. 38.

[37]      Committee Hansard, 21 July 2014, p. 38.

[38]      Committee Hansard, 21 July 2014, p. 38.

[39]      Committee Hansard, 21 July 2014, p. 47.

[40]      Committee Hansard, 21 July 2014, p. 16.

[41]      Committee Hansard, 21 July 2014, p. 29.

[42]      Committee Hansard, 21 July 2014, p. 32.

[43]      Committee Hansard, 21 July 2014, p. 16.

[44]      Committee Hansard, 21 July 2014, p. 32.

[45]      Committee Hansard, 21 July 2014, p. 23.

[46]      Committee Hansard, 21 July 2014, p. 23.

[47]      Committee Hansard, 21 July 2014, p. 20.

[48]      Committee Hansard, 21 July 2014, p. 12.

[49]      Department of Defence, answer to question on notice Nos. 24 and 26.

[50]      Department of Defence, answer to question on notice Nos. 24 and 26.

[51]      Committee Hansard, 21 July 2014, p. 44.

[52]      Submission 13, p. 3.

[53]      Submission 13, p. 4.

[54]      'Minister for Defence—Transcript—Naval shipbuilding announcement, CEA Technologies, Canberra', 6 June 2014, p. 2,  http://www.minister.defence.gov.au/2014/06/06/minister-for-defence-transcript-naval-shipbuilding-announcement/ (accessed 4 August 2014).

[55]      'Minister for Defence—Defence and Industry Conference 2014', Adelaide Convention Centre, 29 July 2014,  http://www.minister.defence.gov.au/2014/07/29/minister-for-defence-defence-and-industry-conference-2014/ (accessed 4 August 2014).

[56]      Committee Hansard, 21 July 2014, p. 23.

[57]      Committee Hansard, 21 July 2014, p. 23.

[58]      Department of Defence, answer to question on notice No. 30.

[59]      Committee Hansard, 21 July 2014, p. 28.

[60]      Committee Hansard, 21 July 2014, p. 30.

[61]      Committee Hansard, 21 July 2014, p. 31.

[62]      Committee Hansard, 21 July 2014, p. 32.

[63]      Committee Hansard, 21 July 2014, p. 24.

[64]      Committee Hansard, 21 July 2014, p. 35.

[65]      Committee Hansard, 21 July 2014, p. 42.

[66]      Committee Hansard, 21 July 2014, p. 46.

[67]      Committee Hansard, 21 July 2014, p. 42.

[68]      Committee Hansard, 21 July 2014, p. 42.

[69]      Committee Hansard, 21 July 2014, p. 42.

[70]      Mr Christopher Burns, Committee Hansard, 21 July 2014, p. 45.

[71]      Committee Hansard, 21 July 2014, p. 43.

[72]      Committee Hansard, 21 July 2014, p. 46.

[73]      Committee Hansard, 21 July 2014, p. 44.

[74]      Committee Hansard, 21 July 2014, p. 46.

[75]      Committee Hansard, 21 July 2014, p. 44.

[76]      Committee Hansard, 21 July 2014, p. 46.

[77]      Committee Hansard, 21 July 2014, p. 46.

[78]      Mr Graeme Dunk, Committee Hansard, 21 July 2014, p. 41.

[79]      Committee Hansard, 21 July 2014, p. 53.

[80]      Submission 13, p. 3.

[81]      Committee Hansard, 21 July 2014, p. 29.

[82]      Committee Hansard, 21 July 2014, p. 30.

[83]      Committee Hansard, 21 July 2014, p. 19.

[84]      Committee Hansard, 21 July 2014, p. 30.

[85]      Committee Hansard, 21 July 2014, p. 18.

[86]      Committee Hansard, 21 July 2014, p. 27.

[87]      Committee Hansard, 21 July 2014, p. 19.

[88]      Committee Hansard, 21 July 2014, p. 19.

[89]      Committee Hansard, 21 July 2014, p. 20.

[90]      Committee Hansard, 21 July 2014, p. 29.

[91]      Committee Hansard, 21 July 2014, p. 20.

[92]      Department of Defence, answer to question on notice No. 7.

Chapter 9 - Limited tender

[1]         'Minister for Defence—Boosting Australia's maritime capabilities', 6 June 2014.

[2]        See for example, Mr Glenn Thompson, Committee Hansard, 21 July 2014, p. 36.

[3]        Committee Hansard, 21 July 2014, p. 15.

[4]        Committee Hansard, 21 July 2014, p. 16.

[5]        Committee Hansard, 21 July 2014, p. 15.

[6]        Committee Hansard, 21 July 2014, p. 15.

[7]        Committee Hansard, 21 July 2014, p. 16.

[8]        Committee Hansard, 21 July 2014, p. 16.

[9]        Committee Hansard, 21 July 2014, p. 16.

[10]      Committee Hansard, 21 July 2014, p. 25.

[11]      Committee Hansard, 21 July 2014, p. 25.

[12]      Committee Hansard, 21 July 2014, p. 25.

[13]      Committee Hansard, 21 July 2014, p. 12.

[14]      Committee Hansard, 21 July 2014, p. 12.

[15]      See paragraphs 8.35–8.38.

[16]      See for example, Mr Graeme Dunk, Committee Hansard, 21 July 2014, p. 43.

[17]      Submission 8, p. [2].

Additional Comments by Senator Nick Xenophon - Ship happens?

[1]        Defence Minister David Johnston, media release, 6 June 2014.

[2]        Senate Finance and Public Administration References Committee, inquiry into Commonwealth procurement procedures, https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Finance_and_Public_Administration/Commonwealth_procurement_procedures

[3]        Canadian National Shipbuilding Procurement Strategy (NSPS),
http://www.tpsgc-pwgsc.gc.ca/app-acq/sam-mps/snacn-nsps-eng.html

[4]        Over a third of UK sourced defence contracts may be recovered by the Treasury in tax revenue, https://www.rusi.org/news/ref:N4F194BF09B370/#.U_v0wvnEJSi

[5]        Mr Glenn Thompson, AMWU, Committee Hansard, 21 July 2014, p. 34.

[6]        Mr Glenn Thompson, AMWU, Committee Hansard, 21 July 2014, p. 35.

[7]        Mr Glenn Thompson, AMWU, Committee Hansard, 21 July 2014, p. 33.

[8]        Australia to sign new submarines deal with Japan ..., http://www.news.com.au/national/australia-to-sign-new-submarines-deal-with-japan-as-prime-minister-shinzo-abe-visits-tony-abbott-in-canberra/story-fncynjr2-1226980720135

[9]        Senator David Johnston, radio interview ABC Canberra 666, 1 May 2013.

[10]      Senator David Johnston, media release, 8 May 2013.

[11]      Committee Hansard, 21 July 2014, p. 42.

[12]      South Australian ship builders cut out of contracts as Federal Government buys overseas, http://www.adelaidenow.com.au/news/south-australia/south-australian-ship-builders-cut-out-of-contracts-as-federal-government-buys-overseas/story-fni6uo1m-1226945174449

[13]      Defence Minister David Johnston, media release, 6 June 2014.

[14]      Mr Chris Burns, Committee Hansard, 21 July 2014, p. 41.

[15]      Mr Andrew Fletcher, Defence SA, Committee Hansard, 21 July 2014, p. 49.

[16]      Mr Warren King, Committee Hansard, 21 July 2014, p. 19.

[17]      Mr Warren King, Committee Hansard, 21 July 2014, p. 16.

[18]      Department of Finance, Submission 14, p. 2.