Defence Procurement

The majority voted in favour of a motion introduced by South Australian Senator Nick Xenophon (Nick Xenophon Team), which means it succeeded and that the documents will need to be produced.

Motion text

That—

(1) The Senate notes that:

(a) on 5 September 2017, the Senate agreed to an order for the production of documents directed at the Minister representing the Minister for Defence Industry for:

(i) any correspondence between the Department of Defence and ASC Pty Ltd in response to the announcement that Australian shipbuilders ASC Pty Ltd and Austal would partner to win the contract to build the $35 billion Future Frigate in Adelaide,

(ii) any correspondence between the Department of Defence and Austal in response to the announcement that Australian shipbuilders ASC Pty Ltd and Austal would partner to win the contract to build the $35 billion Future Frigate in Adelaide,

(iii) any correspondence between the Department of Defence and the three prospective design partners in response to the announcement that Australian shipbuilders ASC Pty Ltd and Austal would partner to win the contract to build the $35 billion Future Frigate in Adelaide, and

(iv) any other documentation held by the Future Frigate project that discusses Australian Industry Capability, the partnering or use of Australian shipyards, and how Techport and other Australian facilities might be used in the program;

(b) on 7 September 2017, the Minister for Defence tabled a letter in response claiming public interest immunity, and stated that release of such documents would potentially damage national security, damage international relations and adversely affect the Department of Defence's negotiation position in respect of future contracts;

(c) information on Australian Industry Capability and the partnering or use of Australian shipyards, and how Techport and other Australian facilities might be used in the program are not matters that would reasonably attract a security classification – the order for production of documents does not seek access to any documents that have been marked with national security markings, only unclassified data;

(d) the tender is restricted to three foreign companies: BAE Systems, Fincantieri and Navantia – a claim that disclosing documents passed to three commercial companies could in some way affect Australia's international relations is not a reasonable claim;

(e) the Government is seeking to negotiate a contract that prevents established Australian shipbuilders and their workers from a lead role in Australia's Continuous Naval Shipbuilding Program – this approach will have the opposite effect of a creating a sovereign capability – contract negotiations under the current tender arrangements will be harmful to Australian industry and national security; and

(f) on 16 July 1975, the Senate laid out by resolution its position with respect to public interest immunity claims – paragraph 4 of that resolution makes it clear that, while the Senate may permit claims of public interest immunity to be advanced, it reserves the right to determine whether a particular claim will be accepted.

(2) The Senate does not accept the public interest immunity claim made by the Minister representing the Minister for Defence Industry in relation to order for production of documents number 449 and requires the minister to table documents in full compliance with order for the production of documents number 449 by the commencement of business on 13 September 2017.

(3) If the Minister does not comply with this order for the production of documents by the specified time, the Senate requires the Minister representing the Minister for Defence Industry to attend the Senate at the end of question time on 13 September 2017, so that any senator may ask for an explanation in connection with this matter, and at the conclusion of the explanation any senator may move without notice a motion to take note of the explanation or any failure to provide an explanation.