ASC “hasn’t discussed” subs with Government
Government shipbuilder ASC has neither received nor sought any information about the Commonwealth’s requirements for its multi-billion dollar future submarines project.
And a senate committee heard this morning it would take the company “a minimum of six months to get a bid together” once it was given the information.
The record defence spend, estimated between $20 and $40 billion, has been the subject of increasing conjecture, with the Abbott Government abandoning an explicit commitment to build the vessels in Adelaide and mounting speculation about an impending deal with the Japanese.
ASC’s Interim CEO Stuart Whiley this morning fronted the Senate Economics References Committee, saying the shipbuilder had been given “no details on any requirements” relating to the project.
“We’ve not had any discussions with the Government on the future submarines,” Whiley said.
He was asked “Is it hard to put in a bid without that information?”, replying: “We have no information to prepare a bid against.”
“We’ve been given no information relating to Government requirement for the future submarines.
“We don’t have a design to put forward … Government haven’t specified what they want in terms of requirements, so it’s very hard to speculate in terms of what that requirement is,” he said.
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Labor Senator and former Industry Minister Kim Carr expressed his “surprise” at the lack of communication, while SA Liberal Senator Sean Edwards retorted: “You’re surprised — I’m speechless!”
Edwards last week claimed to have orchestrated a policy U-turn, obtaining Prime Minister Tony Abbott’s commitment to an open tender process; but this was later described by Defence Minister Kevin Andrews not as a tender but a “competitive evaluation”.
Edwards today appeared outraged the shipbuilder had not sought information from the Government about its requirements for the submarine build.
“Why aren’t you kicking in the door?” he asked. “I would be ‘rat-tat-tat’ on the door … you’re twiddling your thumbs!”
Whiley replied: “I don’t think we’re twiddling our thumbs.”
He conceded he was unaware of reports in The Australian today that Swedish defence manufacturer SAAB was spruiking its wares and had expressed interest in partnering with ASC – or even buying it out.
“What’s going on at ASC?” asked Edwards.
“Are there any entrepreneurs in there at all that are actually looking to protect the jobs of all these workers? SAAB are advertising their willingness …where’s the phone call to SAAB?… The Government’s getting unsolicited tenders and you’re all having a little sit back.”
Whiley said there was little for the shipbuilder to do as “at this point in time there’s no clarity on the Government’s specification”.
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“We are waiting for Government advice, as are other parties,” he said.
However, the ASC representatives maintained “we have a strategy that we’re applying and that’s in train”, though they did not elaborate, citing commercial confidentiality.
Whiley said ASC was “more than willing to work in collaboration with an overseas partner” and emphasised the builder was “seeing significant productivity improvements” through its work on the existing Collins class subs.
The ASC boss said the new commitment to a “competitive evaluation process” was never discussed with the shipbuilder prior to Andrews’ bizarre media conference in Adelaide last week, when he refused to detail what the process would involve.
Under examination from Labor Senator Stephen Conroy, Whiley conceded he had been “unaware that (ASC) weren’t allowed to bid for the process”.
“It was news to you when Senator Edwards announced you were excluded and it was news to you when he announced you were allowed to bid?” asked Conroy.
“Yes.”
Conroy continued: “There was no discussion about the process?”
“There was no conversation about the process, no,” replied Whiley.
Carr asked Whiley the reaction at ASC late last year when then-Defence Minister David Johnston told parliament he didn’t trust them “to build a canoe”.
“There was no reaction, certainly from my perspective … We got on with our jobs,” said Whiley.
“It was water off a duck’s back.”
In December, Treasurer Joe Hockey ruled out an open tender process as the Government had “run out of time”.
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