Reference
1.1
On 25 October 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 relation to the parliamentary departments 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.3) 2022-2023];
Particulars of certain proposed expenditure in respect of the year ending on 30 June 2023 [Supply Bill (No.4) 2022-2023]; and
Particulars of proposed expenditure in relation to the parliamentary departments in respect of the year ending on 30 June 2023 [Supply (Parliamentary Departments) Bill (No. 2) 2022-2023].
1.2
A reporting date of Tuesday, 29 November 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 25 October 2022.
Hearings
1.5
The Committee conducted public hearings from 8–10 November 2022.
1.6
On 8 November, the Committee examined the Australian Signals Directorate, Defence Housing Australia, Australian War Memorial, Australian Trade and Investment Commission, Export Finance Australia, and Tourism Australia. The Committee received evidence from Senator the Hon Jenny McAllister, representing the Minister for Defence, and Senator the Hon Don Farrell, Minister for Trade and Tourism.
1.7
On 9 November, the Committee examined the Defence Portfolio (including Veterans’ Affairs) and received evidence from Senator the Hon Penny Wong, representing the Minister for Defence; Senator the Hon Jenny McAllister, representing the Minister for Veterans Affairs; and officers from the Department of Defence and Department of Veterans’ Affairs.
1.8
On 10 November, the Committee examined the Foreign Affairs and Trade Portfolio and received evidence from Senator the Hon Penny Wong, Minister for Foreign Affairs; Senator the Hon Don Farrell, Minister for Trade and Tourism; and officers of the Department of Foreign Affairs and Trade.
1.9
The Committee expresses its appreciation for the assistance of the Ministers and officials who appeared.
1.10
Over the course of the hearings the Committee took evidence from the following bodies:
Defence Portfolio (including Veterans’ Affairs)
Australian Signals Directorate (ASD)
Defence Housing Australia (DHA)
Department of Veterans’ Affairs (DVA)
Australian War Memorial (AWM)
Foreign Affairs and Trade Portfolio
Department of Foreign Affairs and Trade (DFAT)
Australian Trade and Investment Commission (Austrade)
Questions on notice and Hansard transcripts
1.11
In accordance with the Standing Order 26(9)(a), the Committee set
16 December 2022 as the due date for responses to questions taken on notice at the hearings and for written questions on notice provided by the report tabling date of 29 November 2022.
1.12
The transcripts of these public hearings and answers and additional information are available on the Committee’s website at:
1.13
In this report references to Hansard page numbers are to the proof transcripts. Page numbers may vary between the proof and official Hansard transcript.
Defence Portfolio, 8 November 2022
Australian Signals Directorate
1.14
Topics examined during the hearing included:
Funding for the REDSPICE project originally announced in the March 2022 budget (pp. 3–6)
Staffing levels, and recruitment challenges, facing the agency (pp. 4–8)
Offensive cyber activities to prevent and disrupt offshore cybercrime (pp. 9–11)
Cyber-attacks on Optus and MediBank (pp. 11–21)
Cyber-attacks on critical infrastructure by state-based actors (p. 18)
Briefings with parliamentarians and staffers regarding cyber security on personal phones, particularly concerns about social media applications
(pp. 22–24)
Defence Housing Australia
1.15
Topics examined during the hearing included:
Australian Defence Force (ADF) housing provision requirements (pp. 25–26)
Heritage and archaeological assessments for a proposed defence housing facility in Randwick (pp. 26–29)
Lawson North Residential Defence Housing Project (pp. 29–30)
Australian War Memorial
1.16
Topics examined during the hearing included:
Proposals to commemorate the Frontier Wars at the AWM (pp. 30–37)
Progress on the redevelopment of the AWM (p. 37)
AWM funding contributions received from weapons manufacturers
(pp. 38–40)
Foreign Affairs and Trade Portfolio, 8 November 2022
Australian Trade and Investment Commission
1.17
Topics examined during the hearing included:
Live exports and Australia’s trade relationships with nations in the Middle East (pp. 42–44)
Implementation of the Simplified Trade System (pp. 45–48)
Austrade’s role in supporting exports and driving investment in Australian critical minerals companies (pp. 49–50)
Data analysis conducted by Austrade to support Australian tourism (pp. 50–53)
Trade diversification strategies and entry to new markets (pp. 53–55)
Reduction of the average staffing level of the agency (p. 56)
Export Finance Australia
1.18
Topics examined during the hearing included:
Support for trade diversification (pp. 56–57)
Consideration of risk factors when assessing a company for financial support (pp. 58–60)
Proportion of support for coal, oil, gas, and renewable energy companies (pp. 61–62)
Tourism Australia
1.19
Topics examined during the hearing included:
Recovery of Australian tourism following the COVID-19 pandemic (pp. 63–64)
Reduction of funding for Tourism Australia in the budget (pp. 64–65)
Launch of the Ruby the Roo tourism advertising campaign (pp. 65–70)
Efforts to maximise commercial flights to Australia (p. 71)
Defence Portfolio, 9 November 2022
Department of Defence
1.20
Topics examined during the hearing included:
Approaches to former ADF personnel for training of Chinese military (pp. 9–12)
Scope and progress of the Defence Strategic Review (pp. 13–15)
Establishment of the Guided Weapons and Ordinance Enterprise
(pp. 15–18)
Write down of costs associated with the Attack class submarine program (pp. 19–22)
Engagement with the United States (US) on acquiring nuclear submarine capability (pp. 26–27)
Funding and timing for the Henderson shipyard project in Western Australia (pp. 28–34)
Retired US admirals working for the Australian government (pp. 30–31, 36–38)
Defence contribution to National Support Tasks in Defence Portfolio Budget 2022-23 papers (pp. 38–39)
AUKUS taskforce’s work on infrastructure needs associated with the nuclear-powered submarine program (pp. 40–41)
Importance of Australia’s strategic relations with the Pacific, including in relation to climate change (pp. 41–43)
The Australian MRH90 helicopter program (pp. 44–50)
Australia’s Land Combat Vehicle System (Infantry Fighting Vehicle) capability (pp. 53–54)
Australia’s response to the United States’ Office of the Director of National Intelligence preliminary report on Unidentified Aerial Phenomena (UAP) and NASA’s establishment of an independent study team on UAP (pp. 55–56)
Navantia Australia’s proposal to expand Australia's fleet of Hobart Class destroyers by 2030 (pp. 56–60)
Use of special purpose aircraft (pp. 62–64, 67–69)
Department of Defence’s role in the Australian Maritime Strategic Fleet Taskforce (pp. 65–66)
Religious chaplains in the ADF (pp. 69–71)
Retention and recruitment in the Defence Force (pp. 73–74)
Development of Australian sovereign defence industry capability (pp. 75–76)
Government support of Ukraine in response to the Russian invasion (pp. 76–79)
Defence export licences granted to Middle East nations (pp. 80–81)
Public Interest Immunity (PII) claims on documents relating to the
David McBride whistle-blower case (pp. 81–83)
Use of consultancy services by the Department of Defence (pp.84–85)
Department of Veterans’ Affairs
1.21
Topics examined during the hearing included:
Addressing the backlog of compensation claims currently with DVA
(pp. 91–92, 100–111, 119–122)
Impact of labour hire arrangements on service delivery (pp. 92–95)
Role of the Defence Engagement Commissioner (pp. 96–98, 105–106)
Implementation of Royal Commission into Defence and Veteran Suicides recommendations (pp. 102–103)
Training of assistance dogs (p. 105)
Funding for Veteran Wellness Hubs (pp. 112–114, 117–118)
Establishment of the Legislation Improvement Taskforce within DVA
(pp. 115–116)
Foreign Affairs and Trade Portfolio, 10 November 2022
Department of Foreign Affairs and Trade (DFAT) (non-trade programs)
1.22
Topics examined during the hearing included:
Planned meetings with other nations during upcoming international summits (pp. 6–9)
Australian Passport Office staffing levels to handle application backlogs (pp. 9–12, 19–21, 74–75)
Funding for international assistance under Australia’s development program (pp. 12–13)
Discussion of climate loss and damage compensation at the COP27 summit (pp. 13–15)
Changes to the department website regarding recognition of West Jerusalem as the capital of Israel (pp. 15–19, 21–24)
COVID-19 and gender equality support for Pacific nations in the Official Development Assistance budget (pp. 24–26, 63–65)
Potential responses to ongoing human rights abuses in Iran (pp. 26–28, 47–50)
Establishment and role of an Ambassador for First Nations People
(pp. 28–31, 50–52)
Potential return to Kyiv of the Australian Embassy to Ukraine (pp. 31–34)
Sanctions against the Myanmar military junta (pp. 34–35, 45–47)
Update on the processing of applications from Afghanis through the Locally Engaged Employee (LEE) visa program and the review of the program currently being undertaken by the department (pp. 35–40)
Australia’s autonomous sanctions in relation to Russia (pp. 40–43)
Review of the Modern Slavery Act 2018 and its relationship to Australia’s sanctions regime (pp. 41–42)
Australia’s position on Julian Assange (pp. 43–45)
Australia’s response to human rights concerns in Xinjiang, China
(pp. 52–54)
Independent investigation into an incident involving the High Commissioner’s car during COP26 (pp. 54–58)
Support for electoral processes in the Solomon Islands (pp. 58–61)
Status of particular Australians detained overseas (pp. 62–63, 68–71)
Agreements entered into under the Foreign Arrangements Scheme
(pp. 66–68)
Ambassador and High Commissioner vacancies (pp. 71–74)
DFAT (trade programs)
1.23
Topics examined during the hearing included:
Roles and responsibilities of the Minister for Tourism and Trade and the Assistant Minister for Trade (pp. 77–79)
Free trade agreement currently being negotiated with the United Kingdom (UK) (pp. 79–82)
Consideration of a Comprehensive Economic Partnership Agreement with the United Arab Emirates (pp. 82–83)
Reinstating trade with China, particularly barley and wine (pp. 84–86)
Applications from other nations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (pp. 86–88)
Trade agreement negotiations with India and the European Union (EU)
(pp. 89–93)
Visas to address agricultural worker shortages (pp. 95–97)
Negotiations with other nations towards the Indo-Pacific Economic Framework (pp. 97–99)
Senator Raff Ciccone
Chair