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Tuesday, 27 February 2001
Page: 24469


Mrs ELSON (2:25 PM) —My question is addressed to the Minister for Defence. Will the minister inform the House how much two new Collins class submarines would cost? Minister, how much would such a purchase impact on Defence portfolio priorities?


Mr REITH (Minister for Defence) —I thank the honourable member for her question. The cost of another couple of submarines would be in the vicinity of $1 billion to $1½ billion—probably on the higher side of that, obviously. It is a relevant question because we have a commitment from the opposition for an additional two submarines but we do not have from the opposition any idea of how they may proceed to finance those additional submarines and, obviously, this is a significant amount of expenditure. However, we do have from the Leader of the Opposition a commitment and endorsement of the government's white paper.

In the sense of a bipartisan approach to Defence issues, we obviously welcome the commitment and therefore the certainty ahead for the Defence organisation in terms of what they can do and the equipment that they can purchase. It is a significant commitment the government has made. Over 10 years we are talking about $23½ billion, an increase in defence numbers to 54,000 and of course, as members would be aware, within that there is a program of acquisition, a very important capability for the defence of this country. It is a tremendous white paper and it is good that is endorsed by the opposition.

But the fact is that today they have a policy, over and above the white paper, which is for two additional submarines. We are entitled to ask how they are going to pay for that because, clearly, one of the options for the Labor Party is to rearrange the priorities which are set out in the white paper. You cannot in one breath say, `We support the white paper and the capability acquisitions contained within it' but in the next breath fail to advise the Australian public how you are going to meet the commitments you have made. If you were to rearrange commitments, for example, in the purchase of maritime capability and if you were to switch that to these additional submarines, you would by and large wipe out the entire maritime capability purchases which we have signalled in the white paper.

If it is your policy, your secret policy, to rewrite the priorities established in the white paper perhaps you have decided that you will not pay wages for a couple of years in the Air Force! The only other alternative is that the Labor Party propose, in addition to the white paper commitments, to in fact find another $1½ billion, or thereabouts. I think it is a very fair question. There is no answer from the Labor Party on this. All we have are a few indications. We have the member for Fremantle, who said in January:

You have to ask about those priorities. The government is prepared to spend billions in one hit in those areas you've mentioned.

In other words, in response to a question about the government's priorities on Defence and roads, she raised the question whether or not they would in fact remain committed to those priorities which the government has itself outlined. As the Leader of the Opposition said in August last year:

The major point I want to leave with you today is that good defence policies should not bounce around on whim and fashion.

This country today for the first time has a clear plan ahead for the next 10 years—a plan which gives certainty and gives this country a defence force which will do the job. I think it is about time the Leader of the Opposition gave us a few simple answers as to how he is going to back up the policy commitments that he has made.