Footnotes

Executive Summary

[1] Portfolio Budget Statements 2014–15, Defence Materiel Organisation, http://www.defence.gov.au/budget/14-15/pbs/2014-2015_Defence_PBS_04_DMO.pdf (accessed 27 September 2014).

Chapter 1 - Introduction

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

[2] Senate Economics References Committee, Part 1, Future of Australia's naval shipbuilding industry: Tender process for the navy's new supply ships, August 2014, p. 98.

[3] Senate Economics References Committee, Part 1, Future of Australia's naval shipbuilding industry: Tender process for the navy's new supply ships, August 2014, pp. xii–xiii and 93–98.

[4] Senate Economics References Committee, Part 1, Future of Australia's naval shipbuilding industry: Tender process for the navy's new supply ships, August 2014, p. 98.

[5] Senate Economics References Committee, Part 1, Future of Australia's naval shipbuilding industry: Tender process for the navy's new supply ships, August 2014, pp. xiii and 98.

[6] See for example, Minister for Defence—Transcript—Interview with Tony Jones, Lateline, 27 August 2014, http://www.minister.defence.gov.au/2014/08/27/minister-for-defence-transcript-interview-with-tony-jones-lateline-3/; ABC News, 'Japanese submarine experts visit Adelaide, sparking fears for shipbuilding future', 27 August 2014, http://www.abc.net.au/news/2014-08-27/japanese-delegates-spark-fears-submarine-future/5699076; 'Johnston plays down SA submarine fears', 27 August 2014, http://www.news.com.au/national/breaking-news/sa-govt-fears-over-submarine-project/story-e6frfku9-1227038567300; Minister for Defence—Transcript—Interview with Justin Smith, 2UE Drive, 9 September 2014, http://www.minister.defence.gov.au/2014/09/09/minister-for-defence-transcript-interview-with-justin-smith-2ue-drive/ (accessed 27 September 2014); ABC News, 'Soryu submarine deal: Japanese insiders warn submarine program will cost more, hurt Australian jobs', http://www.abc.net.au/news/2014-09-15/japanese-concerns-over-submarine-deal/5743022 (accessed 27 September 2014).

Chapter 2 - Tender process

[1] Committee Hansard, 30 September 2014, p. 3.

[2] Submission 17, p. 8.

[3] Submission 25, p. 21.

[4] Committee Hansard, 30 September 2014, p. 9.

[5] See for example, Mr Hamilton-Smith who raised his concern that the government may again use exemption from the Commonwealth Procurement rules to proceed with a limited tender: that Mr King would not rule out a limited tender. Committee Hansard, 14 October 2014, p. 3.

[6] Committee Hansard, 14 October 2014, p. 3.

[7] Committee Hansard, 14 October 2014, p. 8.

[8] Committee Hansard, 14 October 2014, p. 18.

[9] Committee Hansard, 14 October 2014, p. 13.

[10] Committee Hansard, 14 October 2014, p. 4.

[11] Committee Hansard, 14 October 2014, p. 8.

[12] Committee Hansard, 14 October 2014, p. 9.

[13] Committee Hansard, 14 October 2014, p. 18.

[14] Committee Hansard, 14 October 2014, p. 16.

[15] Committee Hansard, 14 October 2014, p. 18.

[16] Mr Pacey authored Kokoda Paper No. 17, Sub Judice: Australia's Future Submarine, January 2012.

[17] Committee Hansard, 30 September 2014, p. 30.

[18] Committee Hansard, 30 September 2014, p. 32.

[19] Committee Hansard, 30 September 2014, p. 32.

[20] Committee Hansard, 30 September 2014, p. 32.

[21] Committee Hansard, 13 October 2014, p. 27. Dr White conducted the review with Professor Winter, former Secretary of the US Navy. For further details on Dr White's extensive experience in the area of major construction programs including the acquisition of naval vessels see Committee Hansard, 13 October 2014, pp. 25–26.

[22] Committee Hansard, 13 October 2014, p. 32.

[23] Committee Hansard, 13 October 2014, p. 28.

[24] Committee Hansard, 13 October 2014, p. 29.

[25] Committee Hansard, 13 October 2014, p. 29.

[26] Committee Hansard, 13 October 2014, p. 27.

[27] Committee Hansard, 13 October 2014, p. 27.

[28] Committee Hansard, 13 October 2014, p. 29.

[29] Committee Hansard, 13 October 2014, p. 29.

[30] Committee Hansard, 13 October 2014, p. 27.

[31] Committee Hansard, 13 October 2014, p. 30.

[32] Submission 25, p. 21.

[33] Committee Hansard, 8 October 2014, pp. 17–18.

[34] Submission 25, p. 5.

[35] Committee Hansard, 30 September 2014, p. 24. Commodore Greenfield has more than 40 years' experience, 30 of which were in the technical side of Navy's operations, maintenance and acquisition programs. See Committee Hansard, 30 September 2014, p. 21.

[36] Submission 17, paragraph 56.

[37] Committee Hansard, 30 September 2014, p. 19.

[38] Committee Hansard, 30 September 2014, p. 9.

[39] Committee Hansard, 30 September 2014, p. 16.

[40] Committee Hansard, 30 September 2014, p. 16.

[41] Committee Hansard, 30 September 2014, p. 10.

Chapter 3 - Competitive tender does not mean a capability gap

[1] Committee Hansard, 13 October 2014, p. 28.

[2] Committee Hansard, 13 October 2014, p. 31.

[3] Committee Hansard, 30 September 2014, p. 19.

[4] Committee Hansard, 30 September 2014, p. 19.

[5] Committee Hansard, 30 September 2014, p. 10.

[6] Commodore Greenfield, Committee Hansard, 30 September 2014, p. 24.

[7] Committee Hansard, 30 September 2014, p. 22.

[8] Submission 18, p. 2.

[9] Committee Hansard, 14 October 2014, p. 11.

[10] Committee Hansard, 14 October 2014, p. 28. Mr Whiley is the interim CEO of ASC Pty Ltd.

[11] Committee Hansard, 30 September 2014, p. 48.

Chapter 4 - Build in Australia

[1] 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).

[2] Committee Hansard, 14 October 2014, p. 21.

[3] Committee Hansard, 14 October 2014, p. 22.

[4] Committee Hansard, 30 September 2014, p. 1.

[5] Committee Hansard, 30 September 2014, p. 1.

[6] See chapter 6, paragraphs 6.42–6.50.

[7] Committee Hansard, 14 October 2014, p. 37.

[8] Committee Hansard, 14 October 2014, p. 37. Mr Sudholz began an adult apprenticeship as a mechanical fitter after two years and has since completed a Diploma of Mechanical Engineering.

[9] Committee Hansard, 14 October 2014, p. 31.

[10] Committee Hansard, 14 October 2014, p. 31.

[11] Committee Hansard, 14 October 2014, p. 18.

[12] Committee Hansard, 14 October 2014, p. 3.

[13] Committee Hansard, 14 October 2014, p. 6.

[14] Committee Hansard, 14 October 2014, p. 22.

[15] Commodore Greenfield, Committee Hansard, 30 September 2014, p. 24.

[16] Committee Hansard, 8 October 2014, p. 16.

[17] Committee Hansard, 8 October 2014, p. 16.

[18] Phillip Stanford, CEO TKMS Australia, 'ABC AM', 24 October 2014.

[19] Australian Financial Review, 12 September 2014, p. 7.

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

[21] 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).

[22] Submission 7, p. 2.

[23] Submission 7, p. 3.

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

[25] Committee Hansard, 30 September 2014, p. 5.

[26] See Committee Hansard, 8 October 2014, p. 22.

[27] Submission 25, p. 17.

[28] Dr Brain is the Executive Director of the National Institute of Economic and Industry Research but was appearing in a private capacity. See Committee Hansard, 13 October 2014, p. 33.

[29] Committee Hansard, 13 October 2014, p. 33.

[30] Committee Hansard, 30 September 2014, p. 18.

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

[32] Committee Hansard, 30 September 2014, p. 18.

[33] Committee Hansard, 30 September 2014, p. 18.

[34] Committee Hansard, 30 September 2014, p. 18.

[35] Committee Hansard, 30 September 2014, p. 18.

[36] Committee Hansard, 30 September 2014, p. 3.

[37] Submission 4, p. [1].

[38] Committee Hansard, 14 October 2014, p. 5.

[39] Committee Hansard, 8 October 2014, p. 15.

[40] For a more detailed account of the critical importance of the submarine fleet to Australia's national security, see chapter 6, paragraphs 6.4–6.6.

[41] Committee Hansard, 30 September 2014, p. 3.

[42] Committee Hansard, 13 October 2014, p. 25.

[43] Committee Hansard, 8 October 2014, p. 16.

[44] See also chapter 7 of Part I of the committee's report, Future of Australia's naval shipbuilding industry: Tender process for the navy's new supply ships, August 2014.

[45] Committee Hansard, 30 September 2014, p. 3.

[46] Committee Hansard, 30 September 2014, p. 4.

[47] Committee Hansard, 30 September 2014, p. 4.

[48] Submission 17, paragraph 35.

[49] Committee Hansard, 30 September 2014, p. 10.

[50] Submission 18, p. 3.

[51] Committee Hansard, 30 September 2014, p. 25.

[52] Submission 25, p. 5.

[53] Committee Hansard, 8 October 2014, p. 12.

[54] Committee Hansard, 8 October 2014, p. 12.

[55] Senate Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Committee Hansard, 22 October 2014, p. 93.

[56] Senate Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Committee Hansard, 22 October 2014, p. 91.

Chapter 5 - Australia’s new submarine cannot be a MOTS

[1] Committee Hansard, 30 September 2014, p. 5.

[2] Committee Hansard, 30 September 2014, p. 5.

[3] Committee Hansard, 30 September 2014, pp. 5–6 and 9.

[4] Committee Hansard, 30 September 2014, p. 37.

[5] Committee Hansard, 30 September 2014, p. 38.

[6] Committee Hansard, 30 September 2014, p. 38.

[7] Committee Hansard, 30 September 2014, p. 21.

[8] Committee Hansard, 30 September 2014, p. 22.

[9] Committee Hansard, 30 September 2014, p. 22.

[10] Submission 17, paragraphs 23–24.

[11] Committee Hansard, 30 September 2014, p. 30.

[12] Committee Hansard, 30 September 2014, p. 30.

[13] Committee Hansard, 30 September 2014, p. 37.

[14] Committee Hansard, 30 September 2014, p. 14.

[15] ABC News, 'Soryu submarine deal: Japanese insiders warn sub program will cost more, hurt Australian jobs', 15 September 2014, http://www.abc.net.au/news/2014-09-15/japanese-concerns-over-submarine-deal/5743022 (accessed 30 October 2014).

[16] Department of Defence, Future Submarine Industry Skills Plan, A Plan for the Naval Shipbuilding Industry, p. 36, http://www.defence.gov.au/dmo/Multimedia/FSISPWEB-9-4506.pdf (accessed 7 August 2014).

[17] Submission 25, p. 5.

[18] Submission 25, p. 5.

[19] Committee Hansard, 30 September 2014, p. 25.

[20] Submission 18, p. 2.

[21] Committee Hansard, 30 September 2014, p. 50.

[22] Committee Hansard, 30 September 2014, p. 15.

[23] Committee Hansard, 30 September 2014, p. 13.

[24] Committee Hansard, 8 October 2014, p. 17.

[25] Committee Hansard, 30 September 2014, p. 49.

[26] Committee Hansard, 30 September 2014, p. 34. Mr King was unsure of the date of the hearing held around the month of May.

[27] Committee Hansard, 30 September 2014, p. 34.

[28] Committee Hansard, 30 September 2014, p. 34.

[29] Committee Hansard, 30 September 2014, p. 36.

[30] Committee Hansard, 30 September 2014, pp. 36–37.

[31] Committee Hansard, 30 September 2014, p. 38. In an answer to question on notice No. 2, taken on 30 September 2014, the Department of Defence informed the committee that: the approval delegate for international travel to be undertaken by the Chief Executive Officer of the Defence Materiel Organisation (CEO DMO), is the Secretary of Defence. Departmental officials do not routinely advise the Minister for Defence of an intention to travel. In this particular case, the Minister was not formally advised of Mr King’s intention to travel to Japan in February 2014.

[32] Department of Defence, answer to question on notice No. 2, taken on 30 September 2014.

[33] Committee Hansard, 30 September 2014, pp. 40 and 42.

[34] Committee Hansard, 30 September 2014, p. 41.

[35] Committee Hansard, 30 September 2014, p. 43.

[36] Committee Hansard, 30 September 2014, p. 63.

[37] Department of Defence, answer to question on notice No. 8, taken on 30 September 2014.

[38] Committee Hansard, 30 September 2014, p. 43.

[39] Committee Hansard, 30 September 2014, p. 43.

[40] Committee Hansard, 30 September 2014, p. 37.

[41] For a more detailed account of the shift in Japan's policy on the export of arms, see paragraphs 5.70–5.73.

[42] Committee Hansard, 30 September 2014, pp. 37–39.

[43] Committee Hansard, 30 September 2014, pp. 37–38.

[44] Committee Hansard, 30 September 2014, pp. 37 and 38.

[45] Committee Hansard, 30 September 2014, p. 38.

[46] Committee Hansard, 30 September 2014, p. 56.

[47] Committee Hansard, 30 September 2014, p. 39.

[48] Committee Hansard, 30 September 2014, p. 39.

[49] Committee Hansard, 30 September 2014, p. 40.

[50] Committee Hansard, 30 September 2014, p. 44.

[51] Committee Hansard, 30 September 2014, p. 44.

[52] See paragraphs 6.8–6.12.

[53] Committee Hansard, 30 September 2014, p. 12.

[54] Committee Hansard, 30 September 2014, p. 11.

[55] Committee Hansard, 30 September 2014, p. 11.

[56] Committee Hansard, 30 September 2014, p. 25.

[57] Committee Hansard, 30 September 2014, p. 22.

[58] Committee Hansard, 30 September 2014, p. 22.

[59] Committee Hansard, 30 September 2014, p. 14.

[60] Committee Hansard, 30 September 2014, p. 14.

[61] Committee Hansard, 30 September 2014, p. 11.

[62] Committee Hansard, 30 September 2014, p. 15.

[63] Committee Hansard, 30 September 2014, p. 14.

[64] Committee Hansard, 30 September 2014, p. 11.

[65] Committee Hansard, 30 September 2014, p. 12.

[66] Committee Hansard, 30 September 2014, p. 22.

[67] Committee Hansard, 8 October 2014, p. 16.

[68] Submission 17, p. 6.

[69] Committee Hansard, 30 September 2014, p. 12.

[70] Submission 17, p. 6.

[71] Committee Hansard, 30 September 2014, p. 11.

[72] Committee Hansard, 30 September 2014, p. 12.

[73] Committee Hansard, 30 September 2014, p. 12.

[74] Committee Hansard, 30 September 2014, p. 12.

[75] Committee Hansard, 30 September 2014, p. 12.

[76] Submission 25, p. 11.

[77] Committee Hansard, 30 September 2014, p. 29.

[78] Committee Hansard, 30 September 2014, p. 11.

[79] See Appendix 3—Background to SEA 1000 Phase 1A—acquiring Australia's future submarine capability, p. 83.

[80] Committee Hansard, 30 September 2014, p. 11.

[81] Committee Hansard, 30 September 2014, p. 13.

[82] Submission 25, p. 11.

[83] Committee Hansard, 30 September 2014, p. 15.

[84] Committee Hansard, 30 September 2014, p. 14.

[85] Committee Hansard, 30 September 2014, p. 14.

[86] Committee Hansard, 30 September 2014, p. 15.

[87] Committee Hansard, 30 September 2014, p. 15.

[88] Committee Hansard, 30 September 2014, p. 22.

[89] Submission 25, p. 11.

[90] Committee Hansard, 8 October 2014, p. 21.

[91] Committee Hansard, 8 October 2014, p. 21.

[92] ASPI, The submarine choice; Perspectives on Australia's most complex defence project, September 2014, p. 39.

[93] Committee Hansard, 30 September 2014, p. 7.

[94] Ministry of Foreign Affairs of Japan, 'Japan's Policies on the Control of Arms Exports, htttp://www.mofa.go.jp/un/disarmament/policy/ (accessed 27 October 2014).

[95] For more detail see, Taisuke Hirose, 'Japan Chair Platform: Japan's New Arms Export Principles: Strengthening U.S.–Japan Relations,' Center for Strategic & International Studies, 14 October 2014.

[96] Taisuke Hirose, 'Japan Chair Platform: Japan's New Arms Export Principles: Strengthening U.S.–Japan Relations,' Center for Strategic & International Studies, 14 October 2014.

[97] Committee Hansard, 14 October 2014, p. 2.

[98] Committee Hansard, 13 October 2014, p. 30.

[99] Submission 17, p. 8.

[100] Committee Hansard, 13 October 2014, p. 30.

[101] Submission 17, paragraph 36.

[102] Committee Hansard, 8 October 2014, p. 16.

[103] Committee Hansard, 30 September 2014, p. 59. Rear Admiral Sammut is Head, Future Submarine Program, DMO.

[104] Committee Hansard, 30 September 2014, p. 60.

[105] Committee Hansard, 30 September 2014, p. 60.

[106] Committee Hansard, 30 September 2014, p. 60.

[107] Committee Hansard, 30 September 2014, p. 61.

[108] Committee Hansard, 30 September 2014, p. 60.

[109] Committee Hansard, 30 September 2014, p. 14.

[110] Committee Hansard, 30 September 2014, p. 13.

[111] Committee Hansard, 13 October 2014, p. 30.

[112] Committee Hansard, 30 September 2014, p. 13.

Chapter 6

[1] Committee Hansard, 30 September 2014, p. 52.

[2] Committee Hansard, 30 September 2014, p. 52.

[3] Committee Hansard, 30 September 2014, p. 3.

[4] Committee Hansard, 30 September 2014, p. 1.

[5] Committee Hansard, 30 September 2014, p. 2.

[6] Committee Hansard, 30 September 2014, p. 9.

[7] Submission 18, p. 1. Commodore Greenfield is a qualified weapons and electrical engineer with career in operations, maintenance and acquisition programs of ships and submarines with a focus on trials and major contracting and procurement programs.

[8] Committee Hansard, 30 September 2014, p. 50.

[9] Committee Hansard, 30 September 2014, p. 38.

[10] Committee Hansard, 30 September 2014, p. 9.

[11] Committee Hansard, 30 September 2014, pp. 21–22.

[12] Committee Hansard, 30 September 2014, p. 21.

[13] Committee Hansard, 30 September 2014, p. 21.

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

[15] Submission 18, p. 5.

[16] Committee Hansard, 30 September 2014, p. 21.

[17] Committee Hansard, 30 September 2014, p. 24.

[18] Committee Hansard, 30 September 2014, p. 5.

[19] Committee Hansard, 30 September 2014, p. 5.

[20] Committee Hansard, 30 September 2014, p. 1.

[21] Committee Hansard, 30 September 2014, pp. 1–2.

[22] Committee Hansard, 30 September 2014, p. 5.

[23] See paragraph s 5.57–5. 58.

[24] Committee Hansard, 30 September 2014, p. 21.

[25] Committee Hansard, 30 September 2014, p. 29.

[26] Committee Hansard, 30 September 2014, p. 62.

[27] Committee Hansard, 30 September 2014, p. 38.

[28] Committee Hansard, 30 September 2014, p. 62.

[29] Department of Defence, Future Submarine Industry Skills Plan, 2013, p. 57.

[30] See for example, Mr Hamilton-Smith, Minister for Defence Industries, South Australian Government, Committee Hansard, 14 October 2014, p. 6.

[31] Committee Hansard, 30 September 2014, p. 25.

[32] Committee Hansard, 30 September 2014, p. 9.

[33] Committee Hansard, 8 October 2014, pp. 17–18.

[34] Committee Hansard, 14 October 2014, p. 8. See also Mr Hamilton-Smith, Minister for Defence Industries, South Australian Government, Committee Hansard, 14 October 2014, p. 1.

[35] Senate Foreign Affairs, Defence and Trade Legislation Committee, Estimates Committee Hansard, 22 October 2014, p. 100.

[36] Committee Hansard, 30 September 2014, p. 9.

[37] Committee Hansard, 13 October 2014, p. 26.

[38] Committee Hansard, 30 September 2014, p. 7.

[39] Committee Hansard, 13 October 2014, pp. 26–27.

[40] Committee Hansard, 13 October 2014, pp. 26–27.

[41] Committee Hansard, 30 September 2014, p. 25.

[42] ASC Annual Report 2005, p. 2.

[43] The Australian Submarine Corporation (later ASC) was formed in August 1985 with Kockums holding a 49 per cent shareholder of ASC when ASC was selected as the prime contractor for the submarines in May 1987.

[44] Mr Gregory Tunny, Managing Director and Chief Executive Officer, ASC Pty Ltd, Foreign Affairs Defence and Trade Committee, Inquiry into Australia's Naval Shipbuilding Industry, Committee Hansard, 4 September 2006, p. 12.

[45] Kokoda Paper No. 17, Sub Judice: Australia's Future Submarine, January 2012, p. 63.

[46] See for example, Rear Admiral Brigg who acknowledged that there were design deficiencies in individual equipment. Committee Hansard, 30 September 2014, pp. 17–18.

[47] Submission 18, p. 2.

[48] Committee Hansard, 30 September 2014, p. 24.

[49] Submission 18, p. 3.

[50] Committee Hansard, 14 October 2014, p. 15.

[51] Committee Hansard, 14 October 2014, p. 21.

[52] Committee Hansard, 14 October 2014, p. 21.

[53] Mr Patrick Walters, 'The Cutting Edge: The Collins experience', Strategic Insights, Australian Strategic Policy Institute, February 2006, p. 6.

[54] Mr Patrick Walters, 'The Cutting Edge: The Collins experience', Strategic Insights, Australian Strategic Policy Institute, February 2006, p. 5. Derek Woolner noted that the project was 'revolutionary in that it required those companies bidding for the RFT [Request for Tender] to provide detailed information on their plans to involve Australian industry'. Mr Derek Woolner, Procuring change: How Kockums was selected for the Collins class submarine, Research Paper No. 4, 2001–02, Parliamentary Library, p. 11.

[55] Mr Derek Woolner, Getting in early: Lessons of the Collins Submarine Program for Improved Oversight of Defence Procurement, Research Paper No. 3, 2001–02, Parliamentary Library, p. 14.

[56] Committee Hansard, 30 September 2014, p. 29.

[57] Committee Hansard, 30 September 2014, p. 29.

[58] Kokoda Paper No. 17, Sub Judice: Australia's Future Submarine, January 2012, p. 62.

[59] Committee Hansard, 30 September 2014, p. 6.

[60] Committee Hansard, 30 September 2014, p. 2.

[61] Submission 17, p. 11.

[62] Submission 18, p. 3

[63] Committee Hansard, 30 September 2014, p. 22.

[64] Committee Hansard, 30 September 2014, p. 16.

[65] Committee Hansard, 30 September 2014, pp. 16–17.

[66] Committee Hansard, 30 September 2014, pp. 2–3.

[67] Committee Hansard, 30 September 2014, p. 17.

[68] Committee Hansard, 14 October 2014, p. 30.

[69] Submission 25, p. 1.

[70] Committee Hansard, 13 October 2014, p. 27.

Dissenting Report by Government Senators

[1] Committee Hansard, 30 September 2014, p. 40.

Additional Comments by Senator Nick Xenophon

[1] See: http://www.news.com.au/national/new-japanese-submarines-to-cost-abbott-government-20-billion/story-fncynjr2-1227050682205

[2] See: http://www.afr.com/p/national/blow_builder_local_jobs_as_government_Sf6r98wHZPDJrrIDV340eK

[3] See: http://www.afr.com/p/national/blow_builder_local_jobs_as_government_Sf6r98wHZPDJrrIDV340eK

[4] See: http://www.abc.net.au/am/content/2014/s4113647.htm

[5] See: http://www.senatorjohnston.com.au/Media/OtherMedia/tabid/71/articleType/ArticleView/articleId/326/Doorstop--Future-submarine-project.aspx

[6] Conflict in the East China Sea: would ANZUS apply?, p. 56. http://www.uts.edu.au/sites/default/files/18924-acri-anzus-booklet-web.pdf

[7] Committee Hansard, 14 October 2014.

[8] Defence Capability Development Manual, paragraph 3.17. http://www.defence.gov.au/capability/_home/_pubs/dcdm.pdf

[9] Opinion editorial, Adelaide Advertiser, 18 October, 2014, http://www.minister.defence.gov.au/2014/10/18/minister-for-defence-correcting-the-record-on-submarines-opinion-editorial-adelaide-advertiser/

[10] Submission 25, p. 17.

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

[12] 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

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

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

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

[16] 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

[17] Foreign Affairs Defence and Trade, Senate Estimates, 22 October 2014.

[18] Foreign Affairs Defence and Trade Committee, Senate Estimates, 22 October 2014.

[19] Doorstop press conference, 29 July 2014, http://www.minister.defence.gov.au/2014/07/29/minister-for-defence-doorstop-defence-industry-conference-2014-adelaide/

[20] Senate Question Time, 27 August 2014, http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query%3DId%3A%22chamber%2Fhansards%2F51bf64f5-0da0-45b0-8f27-30816cdb43b4%2F0041%22

[21] Committee Hansard, 14 October 2014 .

[22] The Australian, 23 September 2014, http://www.theaustralian.com.au/national-affairs/defence/shipbuilders-from-spanish-firm-navantia-called-in-to-salvage-destroyer-program/story-e6frg8yo-1227066999460?nk=60d38d7a4b5bff75c6f04a4dfed3ecab&login=1

Appendix 3 - Background to SEA 1000 Phase 1A—deliver Australia's future submarine capability

[1] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 1.14, http://www.defence.gov.au/whitepaper2009/docs/defence_white_paper_2009.pdf (accessed 8 August 2014).

[2] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 8.39.

[3] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 8.40.

[4] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.3.

[5] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.4.

[6] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.5.

[7] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.74.

[8] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.5.

[9] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.7.

[10] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.7.

[11] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.9.

[12] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.3.

[13] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.3.

[14] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.6.

[15] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.8.

[16] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.9.

[17] Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraph 9.10.

[18] 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).

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

[20] Department of Defence, Defence Capability Plan, public version 2012, p. 1, http://www.defence.gov.au/publications/CapabilityPlan2012.pdf (accessed 17 October 2014).

[21] Department of Defence, Defence Capability Plan, public version 2012, p. 201, http://www.defence.gov.au/publications/CapabilityPlan2012.pdf (accessed 17 October 2014).

[22] Senate Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Committee Hansard, 31 May 2010, pp. 49–51.

[23] Minister for Defence and Minister for Defence Materiel, 'Progress of future submarine project', 13 December 2011, http://www.minister.defence.gov.au/2011/12/13/minister-for-defence-andminister- for-defence-materiel-progress-of-future-submarine-project-2/ (accessed 7 May 2012).

[24] Committee Hansard, 30 September 2014, p. 35.

[25] Department of Defence, Defence Capability Plan, public version 2012, p. 206, http://www.defence.gov.au/publications/capabilityplan2012.pdf (accessed 17 October 2014).

[26] Department of Defence, Defence Capability Plan, public version 2012, p. 206.

[27] Department of Defence, Defence Capability Plan, public version 2012, p. 206, http://www.defence.gov.au/publications/capabilityplan2012.pdf (accessed 17 October 2014).

[28] Department of Defence, Defence Capability Plan, public version 2012, p. 206.

[29] Department of Defence, Defence Capability Plan, public version 2012, p. 207.

[30] Prime Minister, Minister for Defence, Minister for Defence Materiel—Joint Media Release—'Next stage of future submarine project announced', 3 May 2012, http://www.minister.defence.gov.au/2012/05/03/prime-minister-minister-for-defence-minister-for-defence-materiel-joint-media-release-next-stage-of-future-submarine-project-announced/ (accessed 7 May 2012).

[31] Defence website, http://www.defence.gov.au/whitepaper2013/ (accessed 20 October 2014).

[32] Department of Defence, Defence White Paper 2013, paragraph 8.46.

[33] Department of Defence, Defence White Paper 2013, paragraph 8.50.

[34] Prime Minister and Minister for Defence—Joint Media Release—Release of the 2013 Defence White Paper, 3 May 2013, http://www.minister.defence.gov.au/2013/05/03/prime-minister-and-minister-for-defence-joint-media-release-release-of-the-2013-defence-white-paper/ (accessed 19 October 2014).

[35] Committee Hansard, 30 September 2014, p. 35.

[36] Committee Hansard, 30 September 2014, p. 35.

[37] Committee Hansard, 30 September 2014, p. 35.

[38] Vice Admiral Jones, Committee Hansard, 30 September 2014, p. 55.

[39] Committee Hansard, 30 September 2014, p. 49. In its answer to question taken on notice No. 4, Defence provided the following information 'As at 1 October 2014, $68.1 million or 32 per cent of the budget (excluding contingency) for planned work has been expended. There has been no expenditure of contingency'.

[40] Department of Defence, question to answer on notice taken 30 September 2014.

[41] Department of Defence, Defence White Paper 2013, paragraph 8.47.

[42] Department of Defence, Defence White Paper 2013, paragraph 8.47.

[43] Department of Defence, Defence White Paper 2013, paragraph 12.54.

[44] Department of Defence, Defence White Paper 2013, paragraph 12.54.

[45] Press Conference, 8 May 2013

[46] The Coalition's Policy for Strategic Defence, p. 4, http://www.liberal.org.au/our-policies (accessed 17 October 2014).

[47] ASPI, The submarine choice, Perspectives on Australia's most complex defence project, September 2014, p. 10. The conference, which was called, 'The Submarine Choice' brought together a 'group of distinguished speakers to discuss the reasoning behind, and the options for, Australia's most expensive and complex defence project—the replacement of the Collins class submarine fleet.

[48] Minister for Defence—Budget 2014–15—Defence Capability, 13 May 2014 http://www.minister.defence.gov.au/2014/05/13/minister-for-defence-budget-2014-15-defence-capability/ (accessed 27 September 2014).

[49] ASPI, The submarine choice; Perspectives on Australia's most complex defence project, September 2014, p. 18.

[50] Portfolio Budget Statements 2014–15, Defence Materiel Organisation, http://www.defence.gov.au/budget/14-15/pbs/2014-2015_Defence_PBS_04_DMO.pdf (accessed 27 September 2014).

[51] Minister for Defence—Defence and Industry Conference 2014, 29 July 2014, Defence+Industry Conference 2014, Adelaide Convention Centre, http://www.minister.defence.gov.au/2014/07/29/minister-for-defence-defence-and-industry-conference-2014/ (accessed 27 September 2014).

[52] Minister for Defence—Australian Business Industry Group, 21 August 2014, http://www.minister.defence.gov.au/2014/08/21/minister-for-defence-australian-business-industry-group/ (accessed 27 September 2014).

[53] Prime Minister of Australia, the Hon Tony Abbott MP, Joint Doorstop Interview, Adelaide, 22 August 2014, Adelaide, http://www.pm.gov.au/media/2014-08-22/joint-doorstop-interview-adelaide (accessed 27 September 2014).

[54] Committee Hansard, 14 October 2014, p. 27.

[55] Questions without Notice, Defence: Submarines, Senate Hansard, 27 August 2014, p. 40 and Minister for Defence—Transcript—Interview with Tony Jones, Lateline, 27 August 2014, http://www.minister.defence.gov.au/2014/08/27/minister-for-defence-transcript-interview-with-tony-jones-lateline-3/ (accessed 27 September 2014). Note in his answer to the question without notice, the Minister indicated that some 14 Japanese technicians comprised the delegation.

[56] ABC News, 'Japanese submarine experts visit Adelaide, sparking fears for shipbuilding future', 27 August 2014, http://www.abc.net.au/news/2014-08-27/japanese-delegates-spark-fears-submarine-future/5699076 (accessed 27 September 2014) Evidence taken by the committee suggested that the delegation comprised 18 Japanese visitors. See Committee Hansard, 14 October 2014, p. 27.

[57] Questions without Notice, Defence Procurement, Senate Hansard, 27 August 2014, p. 41.

[58] Minister for Defence—Transcript—Interview with Justin Smith, 2UE Drive, 9 September 2014, http://www.minister.defence.gov.au/2014/09/09/minister-for-defence-transcript-interview-with-justin-smith-2ue-drive/ (accessed 27 September 2014).

[59] See for example, Adelaide Advertiser, 'Japanese subs could sink the budget', 10 September 2014; Australian Financial Review, 'Germans undercut Japan subs', 11 September 2014; Daily Telegraph, 'Don't torpedo this strategic industry', 12 September 2014; Adelaide Advertiser, 'Japanese subs deal will leave nation "at risk"', 13 September 2014; and Hugh White, the Age, 'What lies beneath: the real reason for Japan subs', 16 September 2014.