Chapter 1 - Introduction
Establishment of Inquiry
1.1
On 25 August 1999, the Senate referred the
following matter to the Committee for inquiry and report by 2 December
1999:
- Whether the proposed sale of Australian Defence
Industries Limited (ADI) to Transfield Thomson–CSF has been conducted with
prudence, discretion, integrity, skill and propriety necessary to:
- protect the value of ADI and its assets;
- realise the maximum price for ADI and its assets; and
- protect
Australia’s national interest, national security and defence relationships from
compromise.
- That, in
considering these terms of reference, the Committee examine and report on the
following issues:
- whether
the actions of the Office of Asset Sales and IT Outsourcing, and those of all
other parties in the sale process, best served the interest of Australian
taxpayers and the broader national interest; and
- any other
issues or questions, reasonably relevant to the terms of reference but not
referred to above, which have arisen in the course of the inquiry.
1.2
The Senate subsequently extended the reporting
date to 17 February 2000.
1.3
The purpose of the inquiry was to review the
sale process and not to interfere with that process or prevent the finalisation
of the sale. In fact, the Committee delayed the start of the hearings until a
time it thought the sale would have been concluded. As it turned out, the last
stage of the sale took longer than expected and was only finalised as the
Committee’s last hearing was taking place.
1.4
The Committee noted that some submissions
opposed the privatisation of ADI. As this was going beyond the terms of
reference, the Committee could not pursue such an option. However, the
Committee did address some of the issues underpinning calls for the retention
of government ownership of ADI.
1.5
The Committee makes no comment on the selection
of Transfield Thomson-CSF as the new owner of ADI nor on the bid of its rival
Tenix. The Committee does, of course, discuss such matters as foreign
investment in ADI and Transfield Thomson-CSF’s plans for ADI, particularly for
its assets in regional areas, technology transfers and capital investment.
Conduct of the Inquiry
1.6
The Committee advertised the inquiry in the Australian
calling for written submissions to be lodged with the Committee. It also
approached directly key players interested in the sale. A total of 17 written
submissions was received. Details of the submissions are listed in Appendix 1.
1.7
After considering the written submissions, the
Committee conducted hearings in Sydney on 25 October, in Melbourne on 19
November and in Canberra on 26 October and 29 November 1999. Details of these
hearings are contained in Appendix 2.
1.8
The Hansard transcripts of evidence taken at the
hearings are located on the Internet at www.aph.gov.au/hansard
Acknowledgements
1.9
The Committee wishes to thank the people and
organisations who made written submissions, gave evidence at hearings or
contributed in some other way to the inquiry.
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