Footnotes

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).

[7]        Economics References Committee, Part II, Future of Australia's naval shipbuilding industry: Future submarines, November 2014, p. ix.

[8]        Schank, John F., Mark V. Arena, Kristy N. Kamarck, Gordon T. Lee, John Birkler, Robert Murphy and Roger Lough. Keeping Major Naval Ship Acquisitions on Course: Key Considerations for Managing Australia's SEA 5000 Future Frigate Program, Santa Monica, CA: RAND Corporation, 2014, http://www.rand.org/pubs/research_reports/RR767 (accessed 18 May 2015); Birkler, John, John F. Schank, Mark V. Arena, Edward G. Keating, Joel B. Predd, James Black, Irina Danescu, Dan Jenkins, James G. Kallimani, Gordon T. Lee, Roger Lough, Robert Murphy, David Nicholls, Giacomo Persi Paoli, Deborah Peetz, Brian Perkinson, Jerry M. Sollinger, Shane Tierney and Obaid Younossi, Australia's Naval Shipbuilding Enterprise: Preparing for the 21^st Century, Santa Monica, CA: RAND Corporation, 2015, http://www.rand.org/pubs/research_reports/RR1093.html (accessed 30 June 2015).

[9]        In September 2014, the Government commissioned RAND to conduct a detailed review of the Australian naval ship building industry. According to the Minister for Defence, the report is one of the most detailed studies undertaken into the Australian naval shipbuilding industry. Department of Defence Ministers, Minister for Defence—Release of the RAND Corporation report, 16 April 2015, http://www.minister.defence.gov.au/2015/04/16/minister-for-defence-release-of-the-rand-corporation-report/ (accessed 18 May 2015).

[10]      Department of Defence Ministers, Minister for Defence—Speech—RUSI Submarine Summit, 25 March 2015, http://www.minister.defence.gov.au/2015/03/25/speech-rusi-submarine-summit-25-march-2015/ (accessed 18 May 2015). Department of Defence Ministers, Minister for Defence—Minister Andrews welcomes Defence appointment, 21 December 2014, http://www.minister.defence.gov.au/2014/12/21/minister-for-defence-minister-andrews-welcomes-defence-appointment/ (accessed 18 May 2015).

[11]      Department of Defence Ministers, Minister for Defence—Speech—RUSI Submarine Summit, 25 March 2015, http://www.minister.defence.gov.au/2015/03/25/speech-rusi-submarine-summit-25-march-2015/ (accessed 18 May 2015).

Chapter 2 - Government response to committee's first report

[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/ (accessed 4 August 2014).

[2]        Australian Government, Australian Government response to the Senate Economic References Committee report: Part I - Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [1], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[3]        Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [2], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015). The JSS project will deliver two ships with an option for a third. The ships are intended to provide core replenishment capabilities, plus added capacity for limited sealift and support to operations ashore and enable a Naval Task Group to remain at sea for extended periods of time. See National Defence and the Canadian Armed Forces, 'Joint Support Ship (JSS)', http://www.forces.gc.ca/en/business-equipment/joint-support-ship.page (accessed 15 June 2015).

[4]        Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [2],  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[5]        Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [1],  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[6]        See, for example, Mr Christopher Burns, Chief Executive Officer, Defence Teaming Centre, Proof Committee Hansard, 21 July 2014, p. 42.

[7]        Submission 9, p. 1.

[8]        Proof Committee Hansard, 14 April 2015, p. 18.

[9]        Submission 9, p. 2.

[10]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, pp. [2–3],  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[11]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [2], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[12]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [2], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[13]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I - Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [3], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[14]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I - Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [3] https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[15]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I - Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [4],  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[16]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [4–5], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

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

[18]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [4],  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[19]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [4],  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

Chapter 3 - Future submarines

[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/whitepaper/2009/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 9.3.

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

[4]        Department of Defence, Defending Australia in the Asia Pacific Century: Force 2030, Defence White Paper, 2009, paragraphs 9.3 and 9.5.

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

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

[7]        See Rear Admiral Gregory Sammut, Head, Future Submarine Program, DMO, Proof Committee Hansard, 30 September 2014, p. 35.

[8]        Department of Defence, Defence White Paper 2013, paragraphs 8.46–8.50 and 12.53–12.54, http://www.defence.gov.au/whitepaper/2013/docs/WP_2013_web.pdf (accessed 20 October 2014).

[9]        Press Conference, 8 May 2013, http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22media%2Fpressrel%2F2715770%22 (accessed 30 June 2015).

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

[11]      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.

[12]      '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).

[13]      Proof Committee Hansard, 14 October 2014, p. 27.

[14]      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 Proof Committee Hansard, 14 October 2014, p. 1–2.

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

[16]      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.

[17]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [3],  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[18]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [3],  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[19]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 53.

[20]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [3], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[21]      Supplementary submission 21, p. [1].

[22]      Supplementary submission 21, pp. [1–2].

[23]      Prime Minister, 20 February 2015, Transcript of the Prime Minister, The Hon. Tony Abbott MP, Joint doorstop interview with Mr Matt Williams MP, Federal Member for Hindmarsh, Adelaide, http://parlinfo.aph.gov.au/parlInfo/download/media/pressrel/3676080/upload_binary/3676080.pdf;fileType%3Dapplication%2Fpdf (accessed 25 June 2015).

[24]      Peter Briggs, 'Future submarine: hybrid or Australian fitout?', The Strategist, ASPI, 16 February 2015, http://www.aspistrategist.org.au/future-submarine-hybrid-or-australian-fitout/ (accessed 23 June 2015). Peter Briggs is a retired RAN submarine specialist, submarine commanding officer and past president of the Submarine Institute of Australia.  See also, ABC News, 'Submarine program: Japan, France, Germany to compete for build process; Government promises hundreds of local jobs' updated 21 Feb 2015, http://www.abc.net.au/news/2015-02-20/japan-france-germany-to-compete-for-submarine-build/6159834 (accessed 24 June 2015).

[25]      Martin Hamilton-Smith MP, Minister for Investment and Trade, Minister for Defence Industries, Minister for Veterans' Affairs, 'Federal Government's past promises a distant dream', 20 February 2015, http://www.martinhamilton-smith.com.au/News/tabid/98/ID/3682/Federal-Governments-past-promises-a-distant-dream.aspx (accessed 24 June 2015).

[26]      Submission 17, pp. 17–18.

[27]      Submission 22, p. 6.

[28]      Commander (Retired) Frank Owen, Secretary, SIA, Proof Committee Hansard, 30 September 2014, p. 1.

[29]      Peter Briggs, 'Future submarine: hybrid or Australian fitout?', The Strategist, ASPI, 16 February 2015, http://www.aspistrategist.org.au/future-submarine-hybrid-or-australian-fitout/ (accessed 23 June 2015).

[30]      Australian Government, Budget 2015–16, Defending Australia and its National Interests, 2015, Department of Defence, p. 6, http://www.defence.gov.au/Budget/15-16/2015-16-Brochure.pdf (accessed 9 June 2015).

[31]      Prime Minister of Australia, the Hon Tony Abbott MP, Transcript, Interview with Chris Uhlmann, ABC News, 8 February 2015, http://www.pm.gov.au/media/2015-02-08/interview-chris-uhlmann-abc-news (accessed 18 May 2015).

[32]      Prime Minister of Australia, the Hon Tony Abbott MP, Transcript, Press Conference, Parliament House, 9 February 2015, Canberra, http://www.pm.gov.au/media/2015-02-09/press-conference-parliament-house (accessed 18 May 2015).

[33]      The Hon Kevin Andrews MP, Minister for Defence, 'Australian Submarine Corporation' Media Release, 10 February 2015, http://kevinandrews.com.au/latest-news/2015/02/10/australian-submarine-corporation/ (accessed 18 May 2015).

[34]      See, for example, Andrew Davies, 'When the government says "competitive evaluation tender process"', The Strategist, ASPI, 11 February 2015.

[35]      Joint Doorstop Interview, Murrumbateman, 11 February 2015, Murrumbateman, New South Wales, Prime Minister, Treasurer, Minister for Agriculture, http://www.pm.gov.au/media/2015-02-11/joint-doorstop-interview-murrumbateman (accessed 18 May 2015).

[36]      Department of Defence Ministers, Minister for Defence—Strategic direction of the Future Submarine Program, 20 February 2015, http://www.minister.defence.gov.au/2015/02/20/minister-for-defence-strategic-direction-of-the-future-submarine-program/ (accessed 18 May 2015).

[37]      Department of Defence Ministers, Minister for Defence—Strategic direction of the Future Submarine Program, 20 February 2015, http://www.minister.defence.gov.au/2015/02/20/minister-for-defence-strategic-direction-of-the-future-submarine-program/ (accessed 18 May 2015).

[38]      Department of Defence Ministers, Minister for Defence—Strategic direction of the Future Submarine Program, 20 February 2015, http://www.minister.defence.gov.au/2015/02/20/minister-for-defence-strategic-direction-of-the-future-submarine-program/ (accessed 18 May 2015).

[39]      Department of Defence Ministers, Minister for Defence—Strategic direction of the Future Submarine Program, 20 February 2015, http://www.minister.defence.gov.au/2015/02/20/minister-for-defence-strategic-direction-of-the-future-submarine-program/ (accessed 18 May 2015).

[40]      Department of Defence Ministers, Minister for Defence—Strategic direction of the Future Submarine Program, 20 February 2015, http://www.minister.defence.gov.au/2015/02/20/minister-for-defence-strategic-direction-of-the-future-submarine-program/ (accessed 18 May 2015).

[41]      Department of Defence Ministers, Minister for Defence—Strategic direction of the Future Submarine Program, 20 February 2015, http://www.minister.defence.gov.au/2015/02/20/minister-for-defence-strategic-direction-of-the-future-submarine-program/ (accessed 18 May 2015).

[42]      Proof Committee Hansard, 19 February 2015, p. 23.

[43]      Proof Committee Hansard, 19 February 2015, p. 24.

[44]      Proof Committee Hansard, 14 April 2015, p. 1.

[45]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 48.

[46]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 48.

[47]      Mr Dunstall, Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 48.

[48]      Department of Defence Ministers, Minister for Defence—Speech—RUSI Submarine Summit, 25 March 2015, http://www.minister.defence.gov.au/2015/03/25/speech-rusi-submarine-summit-25-march-2015/ (accessed 18 May 2015) and Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, pp. 46 and 48.

[49]      Department of Defence Ministers, Minister for Defence—Speech—RUSI Submarine Summit, 25 March 2015, http://www.minister.defence.gov.au/2015/03/25/speech-rusi-submarine-summit-25-march-2015/ (accessed 18 May 2015). Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, pp. 126–128 and Question on Notice No. 2113—SEA 1000 Competitive Evaluation Process—Panel, Senator Xenophon asked the Minister representing the Minister for Defence on 7 April 2015, https://www.aph.gov.au/Parliamentary_Business/Chamber_documents/Senate_chamber_documents/qon/question?number=2113&parliament=44 (accessed 9 June 2015).

[50]      Department of Defence Ministers, Minister for Defence—Speech—RUSI Submarine Summit, 25 March 2015, http://www.minister.defence.gov.au/2015/03/25/speech-rusi-submarine-summit-25-march-2015/ (accessed 18 May 2015).

[51]      Department of Defence Ministers, 'Minister for Defence—Expert Advisory Panel on the Future Submarine Competitive Evaluation Process', 5 June 2015, http://www.minister.defence.gov.au/2015/06/05/minister-for-defence-transcript-expert-advisory-panel-on-the-future-submarine-competitive-evaluation-process-5-june-2015/ (accessed 10 June 2015).

[52]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 46. See also Mr Gould, Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 93.

[53]      Department of Defence Ministers, 'Minister for Defence—Expert Advisory Panel on the Future Submarine Competitive Evaluation Process', 5 June 2015, http://www.minister.defence.gov.au/2015/06/05/minister-for-defence-transcript-expert-advisory-panel-on-the-future-submarine-competitive-evaluation-process-5-june-2015/ (accessed 10 June 2015).

[54]      Answer to Question on Notice No. 2112—SEA 1000 Competitive Evaluation Process—Criteria and Strategic Considerations, Senator Xenophon asked the Minister representing the Minister for Defence on 7 April 2015, https://www.aph.gov.au/Parliamentary_Business/Chamber_documents/Senate_chamber_documents/qon/question?number=2112&parliament=44 (accessed 9 June 2015).

[55]      Answer to Question on Notice No. 2112—SEA 1000 Competitive Evaluation Process—Criteria and Strategic Considerations, Senator Xenophon asked the Minister representing the Minister for Defence on 7 April 2015. https://www.aph.gov.au/Parliamentary_Business/Chamber_documents/Senate_chamber_documents/qon/question?number=2112&parliament=44 (accessed 9 June 2015).

[56]      Answer to Question on Notice No. 2112—SEA 1000 Competitive Evaluation Process—Criteria and Strategic Considerations, Senator Xenophon asked the Minister representing the Minister for Defence on 7 April 2015. https://www.aph.gov.au/Parliamentary_Business/Chamber_documents/Senate_chamber_documents/qon/question?number=2112&parliament=44 (accessed 9 June 2015).

[57]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 53.

[58]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 60.

[59]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 91.

[60]      Foreign Affairs, Defence and Trade Legislation Committee, Estimates, Proof Committee Hansard, 1 June 2015, p. 92.

[61]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 69.

[62]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 49.

[63]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 48.

[64]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 47.

[65]      Proof Committee Hansard, 14 April 2015, p. 7.

[66]      Proof Committee Hansard, 14 April 2015, p. 7.

[67]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 47.

[68]      Proof Committee Hansard, 14 April 2015, p. 13.

[69]      Proof Committee Hansard, 14 April 2015, p. 8.

[70]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 49.

[71]      Proof Committee Hansard, 14 April 2015, p. 8.

[72]      Department of Defence Ministers, Minister for Defence—Visit to Germany, France, Belgium and the United Kingdom, 21 April 2015, http://www.minister.defence.gov.au/2015/04/21/minister-for-defence-visit-to-germany-france-belgium-and-the-united-kingdom/ (accessed 18 May 2015).

[73]      Department of Defence Ministers, Minister for Defence—Bilateral meetings in Germany, 23 April 2015, http://www.minister.defence.gov.au/2015/04/23/minister-for-defence-bilateral-meetings-in-germany/ (accessed 18 May 2015).

[74]      Department of Defence Ministers, Minister for Defence—Ministerial visit to France—24 April 2015, http://www.minister.defence.gov.au/2015/04/24/minister-for-defence-ministerial-visit-to-france-24-april-2015/ (accessed 18 May 2015).

[75]      See, for example, Department of Defence Ministers, Minister for Defence—Release of the RAND Corporation report, 16 April 2015, http://www.minister.defence.gov.au/2015/04/16/minister-for-defence-release-of-the-rand-corporation-report/ (accessed 18 May 2015). For copy of Rand report, Australia's Naval Shipbuilding Enterprise: preparing for the 21^st Century, http://www.rand.org/content/dam/rand/pubs/research_reports/RR1000/RR1093/RAND_RR1093.pdf (accessed 9 June 2015).

[76]      Foreign Affairs, Defence and Trade References Committee, Procurement procedures for Defence capital projects, Final Report, August 2012, recommendation 16. See Appendix 3 at the end of this report on the future of Australia's naval shipbuilding industry for the recommendation in full.

Chapter 4 - AWD—Project of concern

[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]        '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]        The Senate Foreign Affairs, Defence and Trade References Committee chronicled the history of poor performance of a number of Defence's major acquisitions. See Foreign Affairs, Defence and Trade References Committee, Procurement procedures for Defence capital projects, Final Report, August 2012, chapter 2.

[4]        Department of Defence, Departmental Procurement Policy Instruction NO 14/2011, 23 August 2011, http://www.defence.gov.au/dmo/multimedia/dppi_14_11-9-3995.pdf (accessed 1 May 2015). It notes that 'Where a project has been identified through the Early Indicators and Warnings framework and has undergone a diagnostic Gate Review, a submission may be made to Government recommending that the project be listed as a Project of Concern. The decision to identify an acquisition project or sustainment activity as a Project of Concern is a decision made by Government'.

[5]        Proof Committee Hansard, 14 April 2015, p. 7.

[6]        Proof Committee Hansard, 14 April 2015, p. 9.

[7]        Proof Committee Hansard, 14 April 2015, p. 13.

[8]        Proof Committee Hansard, 14 April 2015, p. 13.

[9]        Proof Committee Hansard, 14 April 2015, p. 13.

[10]      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).

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

[12]      'Minister for Defence, Minister for Defence Materiel and Minister for Finance and Deregulation—Joint Media Release—Air Warfare Destroyer update', 6 September 2012. The re-baselined schedule meant that the delivery dates for the ships would be for HMAS Hobart (AWD01)—March 2016; HMAS Brisbane (AWD02)—September 2017 and HMAS Sydney (AWD03)—March 2019.

[13]      The Hon. Stephen Smith MP, Minister for Defence, Media Release, 'Changes to Air Warfare Destroyer Construction Program', MIN663/11, 26 May 2011, http://www.defence.gov.au/minister/Smithtpl.cfm?CurrentId=11862 (accessed 2 January 2012). The minister stated clearly, 'The Melbourne BAE Systems shipyard remains stretched, working on two major projects at the same time—steel blocks for the Air Warfare Destroyers and the superstructure and integration of the Landing Helicopter Dock Ships'.

[14]      Proof Committee Hansard, 14 April 2015, p. 22.

[15]      Proof Committee Hansard, 14 April 2015, pp. 22–23.

[16]      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).

[17]      '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).

[18]      '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).

[19]      Senator the Hon. Mathias Cormann, Minister for Finance and Senator the Hon. David Johnston, Minister for Defence, Joint Media Release, '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).

[20]      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).

[21]      ANAO, Audit Report No.22 2013–14, Performance Audit, Air Warfare Destroyer Program, Department of Defence, Defence Materiel Organisation, Australian National Audit Office, paragraphs 23 and 24, http://www.anao.gov.au/~/media/Files/Audit%20Reports/2013%202014/Audit%20Report%2022/AuditReport_2013-2014_22.pdf (accessed 6 August 2014).

[22]      ANAO, Audit Report No.22 2013–14, Performance Audit, Air Warfare Destroyer Program, Department of Defence, Defence Materiel Organisation, Australian National Audit Office, paragraphs 23 and 24.

[23]      Media Release, Senator the Hon Mathias Cormann, Minister for Finance and Senator the Hon David Johnston, Minister for Defence, ' Putting the Air Warfare Destroyer Program Back on Track', MC 56/14, 4 June 2014, http://www.financeminister.gov.au/media/2014/0604-air-warfare-destroyer-program.html (accessed 14 May 2015).

[24]      '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).

[25]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. [4], https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[26]      Proof Committee Hansard, 14 April 2015, p. 26.

[27]      Proof Committee Hansard, 14 April 2015, p. 26.

[28]      '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).

[29]      Media Release, Senator the Hon Mathias Cormann, Minister for Finance and Senator the Hon David Johnston, Minister for Defence, ' Putting the Air Warfare Destroyer Program Back on Track', MC 56/14, 4 June 2014, http://www.financeminister.gov.au/media/2014/0604-air-warfare-destroyer-program.html (accessed 14 May 2015).

[30]      Joint Media Release, Senator the Hon Mathias Cormann, Minister for Finance and Senator the Hon David Johnston, Minister for Defence, MC 60/14, 19 June 2014 http://www.financeminister.gov.au/media/2014/0619-advisers-appointed-air-warefare-destroyer-program.html (accessed 14 May 2015).

[31]      '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).

[32]      '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).

[33]      Joint Media Release, Senator the Hon Mathias Cormann, Minister for Finance and Senator the Hon David Johnston, Minister for Defence, MC 60/14, 19 June 2014 http://www.financeminister.gov.au/media/2014/0619-advisers-appointed-air-warefare-destroyer-program.html (accessed 14 May 2015).

[34]      Joint Media Release, Senator the Hon. Mathias Cormann, Minister for Finance and Senator the Hon. David Johnston, Minister for Defence, 'Additional Shipbuilding Expertise to be Inserted into the Air Warfare Destroyer Program', MC 133/14, 9 December 2014, http://www.financeminister.gov.au/media/2014/1209-shipbuilding.html (accessed 14 May 2015).

[35]      Joint Media Release, Senator the Hon. Mathias Cormann, Minister for Finance and Senator the Hon. David Johnston, Minister for Defence, 'Additional Shipbuilding Expertise to be Inserted into the Air Warfare Destroyer Program', MC 133/14, 9 December 2014, http://www.financeminister.gov.au/media/2014/1209-shipbuilding.html (accessed 14 May 2015).

[36]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, pp. 60–61.

[37]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 21.

[38]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 21.

[39]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 21.

[40]      Proof Committee Hansard, 14 April 2015, p. 14.

[41]      Proof Committee Hansard, 14 April 2015, p. 14.

[42]      Proof Committee Hansard, 14 April 2015, p. 8.

[43]      Proof Committee Hansard, 14 April 2015, p. 8.

[44]      Proof Committee Hansard, 14 April 2015, p. 9.

[45]      Proof Committee Hansard, 14 April 2015, p. 9.

[46]      Proof Committee Hansard, 14 April 2015, p. 9.

[47]      Proof Committee Hansard, 14 April 2015, p. 9.

[48]      Proof Committee Hansard, 14 April 2015, p. 13.

[49]      Proof Committee Hansard, 14 April 2015, p. 19.

[50]      Proof Committee Hansard, 14 April 2015, pp. 19 and 22.

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

[52]      Proof Committee Hansard, 14 April 2015, p. 19.

[53]      Proof Committee Hansard, 14 April 2015, p. 22.

[54]      Proof Committee Hansard, 14 April 2015, p. 25.

[55]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 22.

[56]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 22.

[57]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 22.

[58]      Proof Committee Hansard, 6 March 2015, p. 5.

[59]      Proof Committee Hansard, 14 April 2015, p. 26.

[60]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 21.

[61]      Proof Committee Hansard, 14 April 2015, p. 8.

[62]      Joint Media Release—Minister for Defence & Minister for Finance—'Air Warfare Destroyer program still fixing serious legacy issues', 22 May 2015, http://www.minister.defence.gov.au/2015/05/22/joint-media-release-minister-for-defence-the-hon-kevin-andrews-minister-for-finance-senator-the-hon-mathias-cormann-air-warfare-destroyer-program-still-fixing-serious-legacy-issues-22-ma/  (accessed 5 June 2015).

[63]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, pp. 41 and 60.

[64]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 58.

[65]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, pp. 38 and 41.

[66]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 39.

[67]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, pp. 42 and 60–61.

[68]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, p. 42.

[69]      Senator the Hon Mathias Cormann, Minister for Finance, Transcript, 'Doorstop—Air Warfare Destroyer project', Perth, 22 May 2015, http://www.financeminister.gov.au/transcripts/2015/0522-doorstop.html (accessed 25 May 2015).

[70]      Joint Media Release—Minister for Defence & Minister for Finance—'Air Warfare Destroyer program still fixing serious legacy issues', 22 May 2015, http://www.minister.defence.gov.au/2015/05/22/joint-media-release-minister-for-defence-the-hon-kevin-andrews-minister-for-finance-senator-the-hon-mathias-cormann-air-warfare-destroyer-program-still-fixing-serious-legacy-issues-22-ma/  (accessed 5 June 2015) and Joint Media Release, Senator the Hon Mathias Cormann, Minister for Finance and The Hon. Kevin Andrews MP, Minister for Defence, ' Air Warfare Destroyer Program—Still Fixing Serious Legacy Issues', MC 24/15, 22 May 2015, http://www.financeminister.gov.au/media/2015/0522-air.html (accessed 25 May 2015).

[71]      Senator the Hon Mathias Cormann, Minister for Finance, Transcript, 'Doorstop—Air Warfare Destroyer project, Perth', 22 May 2015, http://www.financeminister.gov.au/transcripts/2015/0522-doorstop.html (accessed 25 May 2015).

[72]      Joint Media Release, Senator the Hon Mathias Cormann, Minister for Finance and The Hon. Kevin Andrews MP, Minister for Defence, ' Air Warfare Destroyer Program—Still Fixing Serious Legacy Issues', MC 24/15, 22 May 2015, http://www.financeminister.gov.au/media/2015/0522-air.html (accessed 25 May 2015).

[73]      Finance and Public Administration Legislation Committee, Estimates, Proof Committee Hansard, 27 May 2015, pp. 46 and 55.

[74]      '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).

Chapter 5 - Continuous build

[1]        Department of Defence Ministers, 'Minister for Defence—Speech—ASPI Australia's Future Surface Fleet Conference', 31 March 2015, http://www.minister.defence.gov.au/2015/03/31/minister-for-defence-aspi-australias-future-surface-fleet-conference/ (accessed 2 April 2015).

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

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

[4]        John Birkler, John F. Schank, Mark V. Arena, Edward G. Keating, Joel B. Predd, James Black, Irina Danescu, Dan Jenkins, James G. Kallimani, Gordon T. Lee, Roger Lough, Robert Murphy, David Nicholls, Giacomo Persi Paoli, Deborah Peetz, Brian Perkinson, Jerry M. Sollinger, Shane Tierney and Obaid Younossi, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, 2015,  http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015).

[5]        Kevin Andrews Media Release, 'Minister for Defence—release of the Rand Corporation report', 16 April 2015, http://www.minister.defence.gov.au/2015/04/16/minister-for-defence-release-of-the-rand-corporation-report/ (accessed 18 May 2015).

[6]        John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, p. xxvii, 2015, http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015).

[7]        John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, p. xxviii, 2015, http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015).

[8]        Proof Committee Hansard, 14 April 2015, p. 21.

[9]        Proof Committee Hansard, 14 April 2015, p. 21.

[10]      Proof Committee Hansard, 14 April 2015, p. 21.

[11]      Proof Committee Hansard, 6 March 2015, p. 13.

[12]      Proof Committee Hansard, 14 April 2015, p. 14.

[13]      Proof Committee Hansard, 14 April 2015, p. 21.

[14]      Proof Committee Hansard, 14 April 2015, p. 4.

[15]      Proof Committee Hansard, 14 April 2015, p. 4.

[16]      Proof Committee Hansard, 6 March 2015, pp. 1 and 3. Shadbolt Engineering has been involved in pipe installation, fabrication, hull components, block construction, fitting out, sheet metal work and mechanical trades and HVAC trades.

[17]      Alton supplies electrical labour on site and has done so since 1996 across nine of the Anzac frigates to offshore patrol vessels and the two LHDs. It has 80 employees with about 30 engaged full-time on the Defence new building program.

[18]      Proof Committee Hansard, 6 March 2015, p. 3.

[19]      Proof Committee Hansard, 6 March 2015, p. 12.

[20]      Proof Committee Hansard, 6 March 2015, pp. 3–4.

[21]      Proof Committee Hansard, 6 March 2015, p. 2.

[22]      Proof Committee Hansard, 6 March 2015, p. 4.

[23]      Proof Committee Hansard, 6 March 2015, p. 3.

[24]      Proof Committee Hansard, 6 March 2015, p. 2.

[25]      Proof Committee Hansard, 6 March 2015, p. 2.

[26]      Proof Committee Hansard, 6 March 2015, p. 1.

[27]      Proof Committee Hansard, 6 March 2015, p. 6.

[28]      Taylor Bros is a third generation family business established in Hobart in 1936 with a long history with defence ship building and ship repair. It specialises in the outfitting, accommodation outfitting, of the entire vessel. Currently, apart from its workshops in Hobart where the company pre-manufacture accommodation sections, Taylor Bros is working in Williamstown, Garden Island and ASC's yard in Osborne with an annual turnover in the defence sector of approximately $7.5 million which employs around 30 full time employees. Its total contracts to the AWD project total over $60 million & LHD project $12 million. See Proof Committee Hansard, 6 March 2015, p. 3 and document tabled by Mr Phillip Taylor, 6 March 2015.

[29]      Proof Committee Hansard, 6 March 2015, p. 4.

[30]      Proof Committee Hansard, 6 March 2015, p. 5.

[31]      See, for example, Dr Mark Hodge, Defence Materials Technology Centre, Proof Committee Hansard, 6 March 2015, p. 12.

[32]      Proof Committee Hansard, 14 April 2015, p. 11.

[33]      Proof Committee Hansard, 14 April 2015, p. 21.

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

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

[36]      See for example, Mr Saltzer, BAE Systems, who noted 'Before the Anzac project in the 1990s, the exact same thing happened; the industry was brought down to nothing and then reactivated to build a whole fleet of new ships again. The same thing happened with AWD and LHD; when we started those projects the industry had to rebuild from almost nothing, and productivity was low as a result of that. Now we have gotten to the point where we are productive again because we have been spending the last six years building AWDs and LHDs, and where are we today? Facing the end of all work again'. Proof Committee Hansard, 14 April 2015, p. 17.

[37]      Submission 28, p. 1. Austal is a global defence prime contractor and a designer and manufacturer of defence and commercial ships. For more than 25 years, Austal has been a leader in the design, construction and maintenance of revolutionary ships for Governments, Navies and Ferry operators around the world. More than 250 vessels have been delivered in that time. Austal website, http://www.austal.com/en/about-austal/Overview.aspx (accessed 25 June 2015).

[38]      Submission 28, p. 2.

[39]      Submission 33, p. 9.

[40]      Proof Committee Hansard, 6 March 2015, p. 5.

[41]      Proof Committee Hansard, 6 March 2015, p. 2.

[42]      Proof Committee Hansard, 14 April 2015, p. 2.

[43]      Proof Committee Hansard, 14 April 2015, p. 2.

[44]      Proof Committee Hansard, 6 March 2015, p. 5.

[45]      Submission 29, p. 6.

[46]      Proof Committee Hansard, 14 April 2015, p. 25.

[47]      Proof Committee Hansard, 21 July 2014, pp. 23 and 26.

[48]      Proof Committee Hansard, 21 July 2014, p. 23.

[49]      Proof Committee Hansard, 21 July 2014, p. 28.

[50]      Proof Committee Hansard, 21 July 2014, p. 30.

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

[52]      Proof Committee Hansard, 21 July 2014, p. 35.

[53]      Proof Committee Hansard, 21 July 2014, p. 42.

[54]      Proof Committee Hansard, 21 July 2014, p. 46.

[55]      Proof Committee Hansard, 21 July 2014, p. 42.

[56]      Proof Committee Hansard, 21 July 2014, p. 42.

[57]      Proof Committee Hansard, 21 July 2014, p. 42.

[58]      '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).

[59]      '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 14 May 2015).

[60]      Proof Committee Hansard, 14 April 2015, p. 16.

[61]      Proof Committee Hansard, 14 April 2015, p. 16.

[62]      Proof Committee Hansard, 14 April 2015, p. 16.

[63]      Proof Committee Hansard, 14 April 2015, p. 16.

[64]      Proof Committee Hansard, 14 April 2015, p. 16.

[65]      Proof Committee Hansard, 6 March 2015, p. 12.

[66]      John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, 2015, pp. xxxviii–xxxix, http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015).

[67]      John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, 2015, p.149, http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015).

[68]      John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, 2015, p. 132, http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015).

[69]      John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, 2015, p. 131, http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015).

[70]      Proof Committee Hansard, 14 April 2015, p. 20.

[71]      Proof Committee Hansard, 14 April 2015, p. 16.

[72]      Proof Committee Hansard, 14 April 2015, p. 17.

[73]      Proof Committee Hansard, 14 April 2015, p. 17.

[74]      Proof Committee Hansard, 14 April 2015, pp. 17–18.

[75]      Proof Committee Hansard, 14 April 2015, p. 18.

[76]      Proof Committee Hansard, 14 April 2015, p. 19.

[77]      Mr William Saltzer, BAE Systems Australia, Proof Committee Hansard, 14 April 2015, p. 16.

Chapter 6 - Long term national strategic plan

[1]        Mr Warren King, Proof Committee Hansard, 21 July 2014, p. 32.

[2]        The Hon. Stephen Smith MP, Minister for Defence, Media Release, 'Changes to Air Warfare Destroyer Construction Program', MIN663/11, 26 May 2011, http://www.defence.gov.au/minister/Smithtpl.cfm?CurrentId=11862 (accessed 2 January 2012).

[3]        Australian Government, Department of Defence, '2015 Defence White Paper', http://www.defence.gov.au/whitepaper/ (accessed 14 May 2015).

[4]        Department of Defence Ministers, Minister for Defence – Speech – RUSI Submarine Summit – 25 March 2015, 25 March 2015, http://www.minister.defence.gov.au/2015/03/25/speech-rusi-submarine-summit-25-march-2015/ (18 May 2015).

[5]        Australian Government, Department of Defence, '2015 Defence White Paper', http://www.defence.gov.au/whitepaper/ (accessed 14 May 2015).

[6]        Australian Government, Budget 2015–16, Defending Australia and its National Interests, 2015, Department of Defence, p. 2, http://www.defence.gov.au/Budget/15-16/2015-16-Brochure.pdf (accessed 20 May 2014).

[7]        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).

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

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

[10]      Senate Foreign Affairs, Defence and Trade Committee, Blue water ships: consolidating past achievements, 7 December 2006, p. 264.

[11]      Senate Foreign Affairs, Defence and Trade Committee, Blue water ships: consolidating past achievements, 7 December 2006, p. 264.

[12]      Senate Foreign Affairs, Defence and Trade Committee, Procurement procedures for Defence capital projects, Final report, August 2012, pp. 224–225.

[13]      Submission 28, p. 3.

[14]      Submission 28, p. 3.

[15]      Proof Committee Hansard, 6 March 2015, p. 12.

[16]      Proof Committee Hansard, 6 March 2015, p. 12.

[17]      Proof Committee Hansard, 6 March 2015, p. 12.

[18]      Proof Committee Hansard, 6 March 2015, p. 2.

[19]      Proof Committee Hansard, 14 April 2015, p. 19.

[20]      Proof Committee Hansard, 14 April 2015, p. 21.

[21]      Submission 27, p. [4].

[22]      Submission 27, p. [3].

[23]      Proof Committee Hansard, 14 April 2015, p. 27.

[24]      Mr Christopher Burns, Defence Teaming Centre, Committee Hansard, 21 July 2014, p. 45.

[25]      Proof Committee Hansard, 21 July 2014, p. 43.

[26]      Proof Committee Hansard, 21 July 2014, p. 46.

[27]      Proof Committee Hansard, 14 April 2015, p. 27.

[28]      Proof Committee Hansard, 21 July 2014, p. 44.

[29]      See, for example, John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, 2015, p. xxvii, http://www.rand.org/pubs/research_reports/RR1093 (accessed 18 May 2015).

[30]      Australian Government, Australian Government response to the Senate Economic References Committee report: Part I—Inquiry into the Future of Australia's Naval Shipbuilding Industry Tender Process for the Navy's New Supply Ships, p. 1,  https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Naval_shipbuilding/Additional_Documents (accessed 24 May 2015).

[31]      Submission 35, p. 6.

[32]      Australian Government, Budget 2015–16, Defending Australia and its National Interests, 2015, Department of Defence, p. 6, http://www.defence.gov.au/Budget/15-16/2015-16-Brochure.pdf (accessed 20 May 2014).

[33]      Department of Defence Ministers, Minister for Defence—Speech—RUSI Submarine Summit, 25 March 2015, http://www.minister.defence.gov.au/2015/03/25/speech-rusi-submarine-summit-25-march-2015/ (18 May 2015).

Chapter 7 - Defence industry

[1]        Economics References Committee, Part II, Future of Australia's naval shipbuilding industry: Future submarines, November 2014, p. ix.

[2]        Department of Defence Ministers, Minister for Defence—Budget 2015: Defence Budget Overview, 12 May 2015, http://www.minister.defence.gov.au/2015/05/12/minister-for-defence-budget-2015-defence-budget-overview/ (accessed 18 May 2015).

[3]        Australian Government, First Principles Review, Creating One Defence, David Peever and First Principles Review Team, 2015, http://www.defence.gov.au/publications/reviews/firstprinciples/Docs/FirstPrinciplesReviewB.pdf (accessed 19 May 2015).

[4]        Proof Committee Hansard, 14 April 2015, p. 21.

[5]        John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, 2015, p. xxxv, http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015). The RAND study concluded that, ' Overall, the three benchmarking methods indicate a modal premium of about 30 to 40 percent for naval warships built entirely in Australia. This perceived premium, it should be noted, can be significantly influenced by foreign exchange rates, and any consideration of foreign or domestic build must take into consideration currency exchange factors and risks'.

[6]        John Birkler et al, Australia's Naval Shipbuilding Enterprise: Preparing for the 21st Century, Santa Monica, CA: RAND Corporation, 2015, pp. xxxvii and 123, http://www.rand.org/pubs/research_reports/RR1093 (access 18 May 2015). The RAND study noted that the premium could be reduced if the following changes were made: engage in a continuous-build strategy; improve acquisition practices to have more-mature designs at the start of construction and to minimize change during construction and encourage industry to shift to a continuous-improvement culture. p. 146.

[7]        Proof Committee Hansard, 6 March 2015, p. 4.

[8]        Proof Committee Hansard, 14 April 2015, p. 28.

[9]        Proof Committee Hansard, 14 April 2015, p. 29.

[10]      Proof Committee Hansard, 14 April 2015, p. 24.

[11]      Proof Committee Hansard, 6 March 2015, p. 2.

Additional Comments by Senator Nick Xenophon

[1]        Budget Estimates, Finance and Public Administration Committee, 27 May 2015.

[2]        Senator Cormann transcript, 22 May 2015, http://www.financeminister.gov.au/transcripts/2015/0522-doorstop.html.

[3]        Rod Equid, ABC 891 radio Adelaide, 22 May 2015.

[4]        RAND Corporation http://www.rand.org/pubs/research_reports/RR1093.html.

[5]        Defence Minister media release 16 April 2015, http://www.minister.defence.gov.au/2015/04/16/minister-for-defence-release-of-the-rand-corporation-report/.

[6]        Committee hearing Adelaide, 14 April 2015, Hansard, p. 27.

[7]        ANAO, Air Warfare Destroyer Program, report number 22, 6 March 2014, http://www.anao.gov.au/Publications/Audit-Reports/2013-2014/Air-Warfare-Destroyer-Program.

[8]        '2000 jobs at risk in Air Warfare Destroyer project chaos', Cameron Stewart, The Australian, November 28 2014, http://www.theaustralian.com.au/national-affairs/defence/jobs-at-risk-in-air-warfare-destroyer-project-chaos/story-e6frg8yo-12271375246644.

[9]        'Hundreds of shipbuilding jobs under threat at BAE Systems in Melbourne', ABC News 16 June 2015, http://www.abc.net.au/news/2015-06-16/hundreds-of-shipbuilding-jobs-at-bae-systems-under-threat/65496422.

[10]      'Forgacs to lay off 160 Tomago workers', Newcastle Herald July 1 2015, http://www.theherald.com.au/story/3166074/forgacs-to-lay-off-160-tomago-workers/?cs=122.

[11]      Committee hearing 14 April, Hansard p. 16.

[12]      'Hundreds of shipbuilding jobs under threat at BAE Systems in Melbourne', ABC News 16 June 2015, http://www.abc.net.au/news/2015-06-16/hundreds-of-shipbuilding-jobs-at-bae-systems-under-threat/6549642

Appendix 3 - Extract from Foreign Affairs, Defence and Trade References Committee, Procurement procedures for Defence capital projects, Final Report, August 2012 Recommendation 16

[1]        A number of the recommendations are taken from, or based on, RAND, Learning from Experience, Volume IV, Lessons from Australia's Collins Submarine Program 2011,               pp. xiii–xiv.