Senator CARR (4:01 PM) —I move:

Despite constant reassurances by the government on the financial stability of INVAP, we have received confirmation today that there has been a loan extended by the Argentinian government to INVAP, the main contractor building the new reactor at Lucas Heights. We have the ridiculous situation whereby the bankrupt government of Argentina is expected to assist a financially stricken company, INVAP, which has been contracted to build the $300 million reactor at Lucas Heights. We are expected to believe the government on this, and I quote, for instance, the Minister for Science, Mr Peter McGauran, who said recently on the ABC Earthbeat program:

We are told that this is a situation where the government is constantly monitoring the circumstances surrounding its main contractor at Lucas Heights, but at the same time the project manager, Mr Gary Seaborne, is quoted on the ABC last week as saying that he was not aware of the arrangements entered into to provide the $10.5 billion loan by the bankrupt Argentinian government to the main contractor at Lucas Heights. Frankly, I find it almost impossible to believe that the project management, despite these claims of constant monitoring, was not made aware of these arrangements. We have, of course, the statement presented by the Argentinian government to their parliament on 1 March last year where they indicated that they were extending a loan of 12 billion pesos for what they described as pre-financing of exports referred to in the contract with the Australian Nuclear Science and Technology Organisation, ANSTO. There is no doubt in my mind that these circumstances have in fact occurred. What troubles me is the fact that the Australian government has been so inept at discovering these matters until today when we have the situation revealed in this parliament.

As far as I am concerned, this follows a pattern of evasion. We have seen a Senate inquiry which launched into an examination of the circumstances surrounding the letting of this contract, about the selection of the site and about the priorities set—

Senator George Campbell —A select committee.

Senator CARR —A select committee to which ANSTO and the Australian government chose not to give basic documents about the contract and the circumstances surrounding the arrangements for the building of the new reactor at Lucas Heights. It strikes me that ANSTO has become so desperate about this contract, so desperate to have this new facility built, that it is quite prepared to do just about anything.

I understand there are a lot of people in this country who see the need for a research reactor. I am also aware of the overriding concerns of the local community and the very great concerns being expressed by other research scientists that suggest that this is not an appropriate use of $300 million of public moneys—the single largest capital project in science in this country. Yet we have circumstances where clearly the contract arrangements are in question. We have serious circumstances in relation to the disposal of nuclear waste. Serious circumstances have been raised about the security of the site. What we have now is a situation where the international community is also concerned about the financial stability of the Argentinian government and where the World Bank is currently in discussions with the Argentinian government about significant reductions in expenditure across a whole range of social programs, which will, in my view, inevitably include this reactor. (Time expired)