Defence Minister David Johnston has told the Senate he regrets saying that he would not trust the former Australian Submarine Corporation, now known as ASC, “to build a canoe”, after the Opposition blasted him for running down Australian shipbuilding.
Senator Johnston made a short speech when the Senate opened its proceedings this morning, after Opposition Leader Bill Shorten used a speech in the House of Representatives to demand the minister’s sacking.
“I am committed to leading the effort to fix those problems and regrettably in rhetorical flourish I did express my frustration in the past performance of the Australian Submarine Corporation,” Senator Johnston said.
“In these comments I did not intend to cause offence, and of course may I say on the record here and now that I regret that offence may have been taken.”
During Question Time in the Senate yesterday, Senator Johnston was asked about the government’s plans for a new submarine contract, amid speculation the Government could break an election promise to build the submarines in Adelaide and instead award the contract to a Japanese firm.
ASC is tendering for the contract and told a Senate estimates committee it could produce the submarines at a lower cost than other bidders.
Senator Johnston said he was concerned at a cost blowout in the ASC’s previous contract to build Air Warfare Destroyers.
“They are $350 million over budget on three air-warfare destroyer builds.” he said.
“I am being conservative. It is probably more than $600 million but because the data is so bad I cannot tell you.
"You wonder why I am worried about ASC and what they are delivering to the Australian taxpayer! Do you wonder why I wouldn't trust them to build a canoe?”
Last night, Prime Minister Tony Abbott distanced himself from the remarks, issuing a statement through a spokesman.
“It is early days, but the Government is confident that ASC and its partners will successfully turn the corner on this important build,” the statement said, referring to the Air Warfare Destroyer contract.
Opposition Leader Bill Shorten told Parliament before Senator Johnston’s clarification this morning that the minister’s conduct was unacceptable.
"(It's) a shocking insult to thousands of Australian men and women working at the Australian submarine corporation," Mr Shorten said.
In the Senate, Opposition Senate leader Senator Penny Wong said the minister’s position was “untenable’.
He has lost the confidence of the prime minister, he has lost the confidence of his colleagues," she said.
"How can the Australian people have any confidence in this minister?"
Last night, the Opposition accused Senator Johnston of denigrating Australian ship-building and ASC in particular, which had built the Collins Class submarines the Navy had used for a decade.
Senator Wong and shadow defence minister Stephen Conroy slammed the remarks.
“Australia’s submariners trust the skills and experience of ASC workers to keep them safe every single day,” they said in a statement.
“It is disgraceful for the Defence Minister of Australia to undermine their work and display such an appalling lack of respect for their ability.
The Australian Manufacturing Workers’ Union also condemned the remarks.
“This is a total outrage that we have a government talking down industry, workers and jobs,” AMWU Assistant National Secretary Glenn Thompson said.
