Chapter 2Key Issues
2.1This chapter provides an overview of some of the key issues raised during the Committee’s 2024–25 budget estimates hearings. This report does not attempt to analyse the evidence presented to the Committee; rather, it outlines the key issues considered by the Committee during its examination of the proposed 2024–25 budget expenditure. Page numbers reference relevant Committee Hansard transcripts.
Foreign Affairs and Trade Portfolio, 3 June 2024
2.2The Committee discussed a wide range of topics relating to the Foreign Affairs and Trade portfolio, including those outlined in the following sections.
Department of Foreign Affairs and Trade (non-trade programs)
2.3Senator the Hon Penny Wong, Minister for Foreign Affairs, and Ms Jan Adams AO PSM, Secretary of the Department of Foreign Affairs and Trade (DFAT), made opening statements.
2.4The following key issues were discussed:
arrest warrants issued by the International Criminal Court (pp. 11–12);
update to United Nations Relief and Works Agency (UNRWA) funding (pp. 12–14 and 41–44);
increased funding for International Engagement capacity in the 2024–25 budget (pp. 33–35);
recognition of Palestinian state (pp. 6–11 and 14–18);
United Nations 10 May resolution in relation to the two-state solution (p. 11 and 19);
possible Israeli sanctions (pp. 19–21);
Iranian interference at Australian universities (pp. 23–24);
Iranian attacks in Israel (pp. 21–23 and 24–25);
New Caledonia unrest (pp. 25–27);
First Nations recipients of the New Colombo Plan (pp. 27–28);
officials present at the Australia New Zealand Leaders Meeting July 2022 (pp. 28–33);
parliamentarians contacted by the Chinese embassy (pp. 35–37);
Chinese Communist Party backed hacking group targeting parliamentarians (p. 37);
Taiwanese election results (pp. 37–39);
demining efforts in the Black Sea (pp. 39–41);
settler violence in the West Bank (pp. 44–45);
humanitarian aid in Gaza, barriers to peace in Israel/Palestine conflict and Australian casualties in Middle East conflict (pp. 55–57);
Australian representation at Ukraine Peace Summit, Ukraine aid requests and reopening the Australian embassy in Kyiv (pp. 45–49 and 51–55);
key elements of the Falepili Union Treaty (Tuvalu) (pp. 49–51);
classification of Houthis as terrorist organisation (p. 62)
Overseas Development Assistance (ODA) funding for climate related issues (pp. 57–59);
national security and definition of the Islamic Revolutionary Guard Corps as ‘a fully formed part of the state’ in relation to listing as a terrorist organisation (pp. 59–62);
Chinese flare attack and the Australian Government’s response (pp. 65–70);
rising tensions in the Pacific (pp. 74–78);
petition to exclude Israel from FIFA World Cup (p. 73);
Indian Prime Minister Narendra Modi visit to Australia (pp. 73–74)
Papua New Guinea (PNG) landslide and PNG security arrangements (pp. 78–79)
new chancery building in Honolulu (pp. 79–81);
departmental Average Staffing Level (ASL) (pp. 81–82);
reliability of information on DFAT’s webpage (pp. 82–86);
First Nations Ambassador updates (pp. 87–90);
updates on the independent review into the Afghan Lee program (pp. 90–91);
government actions in preventing the spread of nuclear weapons (pp. 92–93);
China Rainbow's involvement in Socceroos match in Beijing (pp. 93–97);
cyber security strategy (pp. 97–98);
liquidation of Air Vanuatu (pp. 98–101);
bilateral security arrangement with Solomon Islands (pp. 101–102);
construction and management of port in Nauru (pp. 102–105);
withdrawal of Bendigo Bank from Nauru (pp. 105–106);
application of national security law in Hong Kong (pp. 106–107); and
decreasing allocation of funds to Association of Southeast Asian Nations (ASEAN) (p. 107).
Department of Foreign Affairs and Trade, 4 June 2024
2.5The Committee recommenced with the Foreign Affairs and Trade portfolio on 4 June 2024.
Department of Foreign Affairs and Trade (non-trade programs)
2.6The following key issues were discussed:
detained Australians overseas (pp. 3–8);
the World Health Organisation and World Health Assembly (pp. 8–9);
extrication of an individual named as Ms Wang (pp. 9–11);
passport offices, passport services and fees (pp. 11–15);
bringing Australia’s legislative response to North Korea and Russia in line with the United States and other like-minded countries (pp. 15–18);
Australia’s support for the Palestinian Authority carrying out reforms (p. 18);
Australia’s priorities for engaging in the Pacific and the Pacific Engagement Visa’s role (pp. 18–19);
Autonomous Sanctions Review (pp. 19–20);
China Rainbow's involvement in Socceroos match in Beijing (continued) (pp. 20–22); and
open letter within DFAT condemning Palestinian Genocide (pp. 22–23).
Department of Foreign Affairs and Trade (trade programs)
2.7The following key issues were discussed:
Investor-State Dispute Settlement (ISDS) (pp. 25–29);
Australian Proliferation Safeguards and AUKUS (pp. 29–30);
Middle East Trade Agreements and live sheep exports (pp. 30–34 and 37–40);
Southeast Asia investment funding to three trade hubs (Jakarta, Singapore and Ho Chi Minh City) (pp. 35–37);
trade tourism strategies and additional funding received in the 2024–25 budget (pp. 34–35);
World Intellectual Property Organisation – Indigenous intellectual property (p. 37);
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and applications to CPTPP (p. 37 and pp. 60–62);
Australia's top trading partners (pp. 42–45);
anti-dumping dispute between Indonesia and European Union (EU) (p. 46)
production credits and subsidies (pp. 46–51);
Chinese tariffs on Australian wine and trade barriers with China (pp. 51–53);
EU Free trade agreement and labour market testing resolution in the EU- NewZealand free trade agreement (pp. 53–60 and pp. 62–64); and
funding for the Trade 2040 Taskforce and use of the funds (p. 64).
Export Finance Australia
2.8Mr John Hopkins, Chief Executive Officer and relevant officials answered questions relating to:
Southeast Asia investment funding project (pp. 65–66);
Export Finance Australia national interest framework (pp. 66–68);
Future Made in Australia and the national interest framework (pp. 68–72);
exports of uranium (pp. 72–73); and
loans to PsiQuantum (pp. 73–75).
Australian Trade and Investment Commission (Austrade)
2.9Mr Xavier Simonet, Chief Executive Officer of the Australian Trade and Investment Commission (Austrade), tabled an opening statement.
2.10Key issues discussed included:
Simplified Trade Systems (STS) (pp. 75–77);
due diligence by Austrade into China Rainbow (pp. 77–78);
live sheep exports (pp. 78–81);
Export Markets Development Grants Program (pp. 81–82); and
Austrade overseas post closures (pp. 82–84).
Tourism Australia
2.11Ms Phillipa Harrison, Managing Director of Tourism Australia, tabled an opening statement.
2.12The following key issues were discussed:
misuse of Tourism Australia funds by employees (pp. 84–86 and 88–90);
overseas employees stranded in Australia during COVID (pp. 86–88);
Australian Tourism Exchange (pp. 90–91)
Thrive 2030 tourism strategy–First Nations elements (pp. 91–92); and
tourism recovery numbers (pp. 92–96).
Defence Portfolio, 5 June 2024
2.13The Committee discussed a wide range of topics relating to the Defence portfolio, including those outlined in the following sections.
Department of Defence
2.14Mr Greg Moriarty AO, Secretary of the Department of Defence, and General Angus Campbell, Chief of the Defence Force, made opening statements.
2.15The following key issues were discussed:
retention and recruitment policies regarding eligibility of foreign nationals to apply to Australian Defence Force (ADF) (pp. 7–15 and 47–48);
Australia’s defence exports to Israel (pp. 15–18);
total permanent force of ADF (pp. 18–22);
OneDefence Data program and Anchoram financial review (pp. 22–25; 54–56 and 106–108);
personnel and culture changes made in the last 12 months (measures of success of those in charge) (pp. 25–27);
recruitment and retention (pp. 27–34 and 80–87);
Collins class submarines maintenance and the Australian Navy’s ability requirement (pp. 34–37);
export controls of F35 fighter jets and use in Gaza conflict (pp. 37–40 and 52–54);
security clearances issued to PWC and Scyne (pp. 40–42);
submarines, Collins and Life of Type Extension (LOTE) (pp. 42–44 and 45–47);
sovereign defence industry priorities (pp. 44–45);
workforce numbers at Henderson shipyard (pp. 48–50);
Navy Surface Combat Fleet, Hunter class frigate program and AUKUS (pp. 50–52);
Afghanistan oversight report and omission of Afghanistan photoshoot from website (p. 57);
selection of persons for combined special forces process (pp. 58–59);
Guided Weapons and Explosive Ordinance (GWEO) acquisition and manufacturing, GWEO enterprise plan and development strategy (pp. 59–63 and 87–91);
advice on foreign investment review board (pp. 63–66);
partner program with Austral (pp. 66–67);
Chief of the Defence Force open letter headed ‘Public servants condemn Australian government complicity in Palestinian genocide’ (pp. 67–69);
counter naval mine capability (pp. 69–72);
questions on notice from previous rounds regarding unescorted visitor passes for KPMG, EY, Deloitte and PWC (pp. 72–75);
Raytheon guided weapons (pp. 75–76);
Department of Veterans’ Affairs personnel (pp. 76–77);
Richard Leslie Norton Victoria Cross (pp. 57–78);
fuel reserves and national security (pp. 79–80 and 91–92);
Per– and polyfluoroalkyl substances (PFAS) contamination at Defence sites (pp. 92–94);
consolidation of Integrated Investment Program (IIP) projects (pp. 95–100 and 108–110);
capability improvements at Darwin airport (pp. 100–102);
offshore patrol vessel program (pp. 102–106); and
Defence Industry Development strategy (pp. 110–115).
Defence Portfolio, 6 June 2024
2.16The Committee recommenced with the Defence portfolio on 6 June 2024.
Department of Defence
2.17The following key issues were discussed:
Hunter Class Frigate procurement, investment in infrastructure and capabilities at Henderson (pp. 5–11 and 14–16);
HMAS Supply repair and inactivity (pp. 11–14);
IIP (continued) (pp. 16–21);
glide path statistics (p. 21);
military justice proceedings (pp. 21–24);
PsiQuantum funding and advisory capacity (pp. 24–26);
Advanced Strategic Capabilities Accelerator (ASCA) – Drone Fly Off (p. 26);
humanitarian aid to Gaza (pp. 27–32);
Australian operations in the Red Sea (pp. 35–37);
Australian assistance to Ukraine (pp. 37–38);
climate change affecting Defence programs (pp. 39–41);
security of ADF and the management of Defence facilities by external contractors (pp. 41–42);
Air Force Deliverables–flying hours (pp. 42–44);
Defence’s well-being and mental health strategy (p. 44);
decision not to release the final report from the Afghanistan Oversight Implementation Panel (pp. 46–49);
recruits in training accommodation and housing requirements for Australian and AUKUS personnel (p. 49 and pp. 60–61);
Taipan helicopter investigations (pp. 49–50);
culture of civil aviation (pp. 50–51);
surface class Collins and Virginia class submarines (pp. 52–58 and 65–67);
optronics masking program (pp. 58–59);
Tomahawks installation costs (p. 59 and pp. 67–68);
separation of Defence/ASA responsibilities (pp. 59–60 and 63);
infrastructure at Rockingham (pp. 61–62);
US submarine radioactive waste leak near Japan (pp. 63–64);
low level radioactive waste disposal (pp. 64–65); and
offshore wind farm/turbines (pp. 70–71).
Australian Submarine Agency
2.18Vice Admiral Jonathan Mead AO RAN, Director-General of the Australian Submarine Agency (ASA), made an opening statement.
2.19Key topics discussed included:
infrastructure works in Western Australia and at HMAS Stirling (pp. 75–76; 83–84 and 85–86);
Submarine Rotational Force-West (pp. 73–75);
consultation with ASA regarding offshore windfarms south of Garden Island (pp. 76–77);
management of nuclear waste from AUKUS submarines (pp. 77–78; 84 and 92–94);
consultation with First Nations peoples on the location of nuclear waste facilities (pp. 78–79);
Australian Naval Nuclear Power Safety Bills 2023 (pp. 78–79);
status of the joint venture between ASC Pty Ltd and BAE Systems (pp. 79–81); and
payments to Rolls-Royce (pp. 86–92).
Australian Signals Directorate
2.20The following topics were discussed:
funding allocation to the REDSPICE program (pp. 95–96);
cyberattack targeting Northern Minerals (p. 96); and
attempted spearfishing incident targeting parliamentarians (pp. 96–98).
Inspector-General of the Australian Defence Force
2.21The following key issues were discussed:
the decision by Inspector-General of the Australian Defence Force (IGADF) to not release certain documents under freedom of information requests (pp. 98–99);
central databases, IGADF fact finding and cases (pp. 99–101);
Royal Commission into Defence and Veterans' Suicide (pp. 101–102) and
selection of witnesses to give evidence to IGADF (pp. 102–104).
Defence Housing Australia
2.22The Committee asked questions regarding housing support for AUKUS (pp. 104–108).
Australian War Memorial
2.23Mr Matt Anderson PSM, Director of the Australian War Memorial, made an opening statement.
2.24The following issues were discussed:
tenures of Council members (pp. 108–110); and
War Memorial Council—expressions of interest (pp. 110–111).
Defence portfolio, Tuesday 2 July 2024
Department of Veterans’ Affairs
2.25The Committee discussed a wide range of topics relating to the Defence portfolio, including those outlined in the following sections:
addressing the claims backlog and permanent impairment claims (pp. 4–5; 13–15; 16–20; 26–31; and 33–36);
vandalism of commemoration sites (p. 5);
draft Veterans' Entitlement Support and upcoming legislation to harmonise the entitlements available to veterans (pp. 5–8 and 22–25);
comparison of non-ongoing contract staff and labour hire staff and contracting arrangements between DVA and consulting firms (pp. 9–13);
damage to overseas war graves in Gaza (pp. 15–16 and 25–26);
promotion of Open Arms National Manager and complaint before the National Anti-Corruption Commission (pp. 20–22);
investigating claims of blast exposure (brain injuries received from blast from weapon) (p. 26); and
Department of Veterans' Affairs future involvement in the proposal to recruit overseas nationals into the Australian Defence Force (pp. 31–33).
Senator Raff Ciccone
Chair
Labour Senator for Victoria