Reference
1.1
On 29 March 2022 the Senate referred the following documents to the Senate Foreign Affairs, Defence and Trade Legislation Committee (the Committee) for examination and report:
Particulars of proposed expenditure in respect of the year ending on 30 June 2023;
Particulars of certain proposed expenditure in respect of the year ending on 30 June 2023;
Particulars of proposed expenditure in respect of the year ending on 30 June 2023 [Supply Bill (No.1) 2022-2023]; and
Particulars of certain proposed expenditure in respect of the year ending on 30 June 2023 [Supply Bill (No.2) 2022-2023].
1.2
A reporting date of Monday, 16 May 2022 was set for the Committee to report on its consideration of the 2022-23 Budget Estimates.
Portfolio coverage
1.3
The Committee has responsibility for examining the expenditure and outcomes of the following:
Defence Portfolio (including Veterans' Affairs); and
Foreign Affairs and Trade Portfolio.
Portfolio Budget Statements 2022-23
1.4
The Portfolio Budget Statements for 2022-23 for the Defence Portfolio, the Department of Veterans' Affairs and the Foreign Affairs and Trade Portfolio were tabled in the Senate on 29 March 2022.
Hearings
1.5
The Committee conducted public hearings on 1, 6 and 7 April 2022.
1.6
On 1 April, the Committee examined the Department of Defence, the Department of Veterans’ Affairs and the Department of Foreign Affairs and Trade. The Committee received evidence from Senator the Hon Marise Payne, Minister for Foreign Affairs, and also representing the Minister for Defence and Minister for Trade, Tourism and Investment; Senator the Hon Jonathon Duniam, Assistant Minister for Forestry and Fisheries and Assistant Minister for Industry Development, representing the Minister for Veterans’ Affairs; and officers of the departments.
1.7
On 6 April, the Committee further examined the Defence Portfolio (including Veterans’ Affairs) and received evidence from Senator the Hon Jonathon Duniam, representing the Minister for Defence and Minister for Veterans’ Affairs; and officers from the Department of Defence, Department of Veterans’ Affairs and relevant portfolio agencies.
1.8
On 7 April, the Committee further examined the Foreign Affairs and Trade Portfolio and received evidence from Senator the Hon Jonathon Duniam, representing the Minister for Foreign Affairs and the Minister for Trade, Tourism and Investment; and officers of the Department of Foreign Affairs and Trade and relevant portfolio agencies.
1.9
The Committee acknowledges that Senator Duniam’s representation of the Minister for Foreign Affairs on 7 April 2022 was in contravention of Procedural Order of Continuing Effect 25 which prohibits an assistant minister to represent a Senate minister in relation to that minister’s responsibilities before a legislation committee considering estimates. However, the Committee notes that the circumstances around this arrangement were exceptional and makes clear that this is not a precedent for disregarding the procedural order in future.
1.10
The Committee expresses its appreciation for the assistance of the Ministers and officials who appeared.
1.11
Over the course of the hearings the Committee took evidence from the following bodies:
Defence Portfolio (including Veterans’ Affairs)
Australian Signals Directorate
Department of Veterans’ Affairs
Foreign Affairs and Trade Portfolio
Department of Foreign Affairs and Trade
Australian Trade and Investment Commission
1.12
Defence Housing Australia and Export Finance Australia were released without examination.
Questions on notice and Hansard transcripts
1.13
In accordance with the Standing Order 26(9)(a), the Committee set 20 May 2022 as the due date for responses to questions taken on notice at the hearings and for written questions on notice provided by 19 April; and 17 June 2022 as the due date for responses to written questions on notice provided after 19 April and before the tabling of the Committee’s Budget Estimates report on 16 May.
1.14
The transcripts of these public hearings and answers and additional information are available on the Committee’s website at:
1.15
In this report references to Hansard page numbers are to the proof transcripts. Page number may vary between the proof and official Hansard transcript.
Defence Portfolio, 1 April 2022
Department of Defence
1.16
Topics examined during the hearing included:
Cancellation of the Attack class submarine program, including total costs expended, contract termination costs, budget treatment, transition-out plan, and current Naval Group Australia workforce (pp. 4-16)
Retirement of the Anzac Class frigates and capability management (pp. 16‑17)
Australia’s commitment to send Bushmaster vehicles to Ukraine (pp. 17-19, 25, 26-27)
Future Frigate Program, including delays and timing for completion of the design reviews, construction dates and costs (pp. 19-22, 25-26)
Super Hornet ejection at RAAF Base Amberley in December 2020 (pp. 22-23)
Replacement of the Growler aircraft which crashed in the United States (US) in 2018 (p. 23)
Loss of Seahawk Romeo helicopter off the Philippines in 2021(pp. 23-24)
Withdrawal of the MRH-90 Taipan helicopters from service and replacement Blackhawk and Seahawk helicopters (pp. 24, 26-28)
Defence spending metrics (pp. 28-29)
Review of security implications of the lease of the Port of Darwin by Landbridge and proposal to develop a new port (pp. 29-33)
Composition of budget funding for the REDSPICE (Resilience, Effects, Defence, Space, Intelligence, Cyber and Enablers) program, including redirection of funding from the cancellation of the SkyGuardian program (pp. 33-35, 37-38)
Defence Cooperation Program funding (pp. 35-36)
Update on construction of the Western Border and Patrol Boat Outpost in the Solomon Islands (pp. 36-37)
Potential security agreement between China and the Solomon Islands (p. 37)
Appointment process for new executive director of the Australian Strategic Policy Institute (pp. 38-40)
Status of the Royal United Services Institute of Victoria lease of Victoria Barracks Melbourne (pp. 40-41)
310 St Kilda Road feasibility study on repurposing the building (p. 41)
Contingency planning for incidents concerning the docking of nuclear‑powered vessels, particularly the location of remote anchorage (p. 42)
Budget funding for future submarines infrastructure, particularly in relation to construction of an east coast base (pp. 42-44)
Department of Veterans’ Affairs (DVA)
1.17
Topics examined during the hearing included:
Royal Commission into Defence and Veteran Suicide, including DVA’s interaction, impact on resources and staff, request for McKinsey & Co’s report and other documents (pp. 45-46)
Additional departmental funding of $96 million to address the claims processing backlog (pp. 46-51)
Introduction and progress of the Veterans’ Affairs Legislation Amendment (Enhanced Family Support) Bill 2022 (pp. 51-52)
Statistics on conscripted veterans serving in the Vietnam War and subsequently issued Gold Cards (pp. 52-53)
Gold Cards issued to veterans who were impacted by nuclear testing at the Maralinga site (p. 54)
Eligibility in relation to Gold Cards and White Cards for different cohorts of veterans (pp. 54-55)
Foreign Affairs and Trade Portfolio, 1 April 2022
Department of Foreign Affairs and Trade (DFAT) (non-trade programs)
1.18
Topics examined during the hearing included:
Voting arrangements at overseas posts for the forthcoming federal election (pp. 57-58)
Solomon Islands, including the proposed security agreement with China, staffing of Australia’s mission in Honiara, development assistance, status of the COVID-19 pandemic and Australia’s assistance in this area (pp. 57-66)
China, including an update on detained Australian journalist Ms Cheng Lei, and Australia’s response of the growth of China’s power and influence (pp. 66-68)
Russian invasion of Ukraine, including an update on the numbers of casualties and civilian displacement, DFAT officials deployed to the region, Australia’s donation of coal from Whitehaven Coal to Ukraine, Australia’s sanctions against Russian oligarch Mr Viktor Vekselberg with an interest in the Beetaloo Basin through the Falcon Oil & Gas and Origin Energy Limited joint-venture (pp. 66, 68, 69-70)
Mr Julian Assange, including contact with the United Kingdom (UK) Government following completion of court proceedings on 14 March 2022, and contact from US Government regarding media reports of proposals by foreign intelligence to kidnap or kill Mr Assange (p. 69)
Consideration of sanctions against General Jagath Jayasuriya following allegations of committing war crimes against the people of Sri Lanka (p. 70)
Investigation into the car crash involving Australian High Commissioner to the UK, the Hon George Brandis QC, at the Glasgow COP26 summit (pp. 71-73)
Role of diplomacy and foreign policy in advancing Australia’s interests and values and utilisation of departmental resourcing (pp. 73-75)
Recent senior executive appointments (p. 75)
Chief Operating Officer’s speech to 2021 graduates (pp. 76-78, 80)
DFAT’s diversity and inclusion strategies (pp. 78-79)
Australia’s recent expenditure on diplomacy and over the forward estimates (pp. 80-81)
Australia’s agriculture visa program and opportunities for the Pacific region (pp. 81-83)
DFAT (trade programs)
1.19
Topics examined during the hearing included:
India-Australia trade relationship, including an update on the implementation of recommendations of the 2018 report by Mr Peter Varghese AO titled An India Economic Strategy To 2035, and update on progress towards a free-trade agreement with India (pp. 84-86)
European Union's proposal to enact a carbon border tax on Australian exports (pp. 86-87)
Assistance in financing overseas fossil fuel projects (pp. 87-88)
Defence Portfolio, 6 April 2022
Department of Defence
1.20
Topics examined during the hearing included:
Recent articles by Mr Peter Jennings and Mr Greg Sheridan commenting on Australia’s progress and ability to deliver capability in the current and future strategic environment (pp. 3-5, 7-11)
Acquisition of the Joint Air-to-Surface Standoff Missile Extended Range and Naval Strike Missile, including industry partners, timeframe and congressional approval process (pp. 5-6, 12)
Cancellation of AIR 7003 SkyGuardian armed drone program, including release of Defence statement in response to comments made by Mr Jennings (pp. 7-11, 33-35, 49-50)
Guided weapons and Explosive Ordnance capability, including accelerated acquisition and funding (pp. 12-13)
Budgeted sustainment costs for current capability and future acquisitions (pp. 13-15)
Update on the progress of Project LAND 400 (pp. 15-18, 24-26)
AUKUS, including announcement to cooperate on the development of hypersonic missiles and relationship to the established SCIFire Hypersonics bilateral program with the US, engagement with the International Atomic Energy Agency, size and composition of Nuclear -Powered Submarine Taskforce, delivery of final report, funding of taskforce, and briefing of the Opposition in lead up to election (pp. 18, 24, 43-48)
Arrangements for briefing the Opposition during election campaign under caretaker conventions and announcements of capability decisions during this period (pp. 19, 22-24)
Accountability of officials following decisions to cancel acquisition of certain capability projects, particularly the Future Submarine Program (pp. 19-23)
Joint Strike Fighter program, including sustainment, capability, aircraft availability and flying hours (pp. 26-30, 35-37)
Update to the Naval Shipbuilding Plan (pp. 30-31)
Review of Defence's innovation system by Mr David Peever (pp. 31-32)
Contingency arrangements for dry docking during the refurbishment of the Captain Cook Graving Dock (pp. 32-33)
Security clearance vetting process for persons who have been investigated by police (pp. 37-38)
Counterterrorism activities conducted by Defence in the Middle East (pp. 38-39)
Australia’s involvement in the Global Coalition Against Daesh (pp. 39-40)
SEA 1180 Arafura class Offshore Patrol Vessels program, including the cancellation of the gun subcontract in June 2021 and status of the rescue boats (pp. 39-43, 49)
Missiles to be used on the Boxer Combat Reconnaissance Vehicles (p. 43)
Procurement of the Pacific Support Vessel (p. 48)
Australian Signals Directorate
1.21
Topics examined during the hearing included:
Role of the Cyber Critical Technology Intelligence Centre (p. 51)
REDSPICE Program announced in the Budget, including labour force requirements and capability, security clearance requirements, funding and new hubs in Melbourne, Brisbane and Perth (pp. 51-55)
Australian War Memorial
1.22
Topics examined during the hearing included:
Appointment of Dr Brendan Nelson to the Australian War Memorial Council following the resignation of Mr Kerry Stokes as Chair and member, and process for the election of new Chair (p. 57)
Update on Professor Craig Stockings’ work on the Official History of Australian Operations in Iraq, Afghanistan and peace keeping operations in East Timor (p. 57)
New South Wales Veterans’ Affairs Minister’s proposal for a new national cemetery for Australia’s war dead (p. 57)
Department of Veterans’ Affairs
1.23
Topics examined during the hearing included:
Tax treatment of miliary invalidity benefits lump sum payments following Federal Court decision in Commissioner of Taxation v Douglas [2020] and Government response (p. 58)
Foreign Affairs and Trade Portfolio, 7 April 2022
DFAT (non-trade programs)
1.24
Topics examined during the hearing included:
Draft security agreement between China and the Solomon Islands, including visit to the Solomon Islands by the directors-general of the Office of National Assessments and the Australian Secret Intelligence Service, DFAT engagement and regional responses (pp. 4-6)
Russia’s invasion of Ukraine, including update on casualties and Australia’s support to Ukraine, violations of international law by Russian forces, humanitarian assistance and measures in place to deliver assistance, expulsion of Russian diplomatic staff by a number of countries and consideration by Australia, jurisdiction of the Rome Statute of the International Criminal Court in relation to Russia’s actions, sanctions, international mechanisms to address gender-based violence, China-Russia no-limits partnership statement and China’s position on the conflict (pp. 6‑18, 21-22)
Myanmar, including consideration of sanctions, engagement, consular access to Professor Sean Turnell and departing Australian ambassador (pp. 18-20, 22-24, 26)
Process for visa approval of Sri Lankan General Jagath Jayasuriya who is accused of war crimes (p. 25)
Update on detention of Australian Dr Yang Hengjun in China, including treatment, health status and timing of trial (p. 25)
Update on Australian Mr Robert Pether imprisoned in Iraq (p. 26)
Update on Australian Mr Chau Van Kam imprisoned in Vietnam (p. 27)
Afghanistan, including current DFAT bureaucratic architecture and cross‑portfolio engagement for matters relating to Afghanistan, split in visa processing between DFAT and Home Affairs and an update on visas granted, Australia’s commitment of $40 million in aid at the United Nations pledging conference, and update on the scale of the humanitarian crisis (pp. 27-30)
Operation of neo-Nazi paramilitary unit Azov Battalion in Ukraine (pp. 30‑32)
Definition of ‘woman’ by the department (p. 32)
Home Affairs employee granted a security clearance and posted to the Australian embassy in Jakarta despite being under investigation for child sexual assault offences (pp. 21-33)
COVAX and Australia’s contribution to the regional distribution of COVID‑19 vaccines (pp. 33-38)
Ethiopia, including DFAT’s response to the Human Rights Watch and Amnesty International’s report ‘We will erase you from this land: crimes against humanity and ethnic cleansing in Ethiopia’s Western Tigray Zone’, published in April 2022, and engagement with Tigrayan diaspora groups in Australia (pp. 38-40)
Update on the situation in Sudan (pp. 40-41)
Agenda Item 7 on the United Nations Human Rights Council on the ‘Human rights situation in Palestine and other occupied Arab territories’ (p. 41)
Australia’s adoption of the International Holocaust Remembrance Alliance’s definition of ‘anti-Semitism’ (p. 41)
Persecution of Christians in Algeria, Bangladesh and Pakistan (pp. 41-42)
Update on jurisdictions which have moved away from the death penalty (pp. 41-42)
Seasonal Worker Program, Pacific Labour Scheme and Agricultural Visa Program (pp. 42-43)
Recognition of the Armenian genocide (p. 44)
Australian Trade and Investment Commission
1.25
Topics examined during the hearing included:
Funding and processes for third round of the COVID-19 Consumer Travel Support Program (pp. 45-47)
Additional funding under the THRIVE 2030 strategy for the development of an online employment platform (p. 47)
Additional funding for Tourism Research Australia’s data enhancement program (pp. 47-48)
Tourism Australia
1.26
Topics examined during the hearing included:
Details of $45 million funding to assist tourism regions affected by border closures (pp. 48-49)
Tourism Australia’s partnerships within its international marketing strategy (p. 50)
Extension of Business Events Australia’s Bid Fund Program (p. 50)
Departure of former Chief Executive Officer, the Hon Scott Morrison MP, from Tourism Australia in 2006 (pp. 50-51)
Senator the Hon Eric Abetz
Chair