Defence Minister David Johnston says attack on Adelaide shipbuilder ASC was ‘rhetorical flourish’
UPDATE: Defence Minister David Johnston says his comments that ASC workers could not be trusted to “build a canoe” was a “rhetorical flourish”.
DEFENCE Minister David Johnston, who declared in Parliament he would not trust Adelaide’s shipbuilders “to build a canoe”, has this morning described his comments as a “rhetorical flourish”.
Senator Johnston launched an extraordinary attack on the Osborne-based, Government-owned shipbuilder ASC in Federal Parliament yesterday after quizzing from SA Labor Senator Alex Gallacher on why he was talking the industry down.
His “canoe” comments also raised the anger of State Opposition leader Steven Marshall who said his federal party counterpart should apologise for his remarks.
On ABC 891 this morning Mr Johnston said he was happy to apologise if Mr Marshall was offended and he was not attacking workers at ASC.
“It was a rhetorical flourish that was not focussed at the workers of ASC, it was about the way the management has simply gone ahead and not worked with Government and indeed the previous Government has misled us all,” he said.
“What I should have said was the Labor Party should not be trusted to build a canoe because it was their responsibility.
“They’ve put at jeopardy this whole Future Frigate program for Adelaide.
“I’m trying to get ASC back on the rails after six years of mismanagement...I think if people knew the facts at what we are looking at trying to put up with in terms of the cost overruns and the threat to Australian naval shipbuilding into the future, they would understand that I am very desperate to repair the situation.”
Before the election Senator Johnston promised to build 12 submarines in South Australia.
Under questioning from Mr Gallacher yesterday, Senator Johnston said that building the Future Submarines in Australia would blow out to a cost of $80 billion, and accused Labor of knowing that figure when they were in power.
Senator Johnston has consistently said that if ASC cannot show greater improvements in the Air Warfare Destroyer Project, they won’t get future contracts, which would mean less work and fewer jobs for SA.
“They’re $350 million over budget on three AWD builds. Now I’m being conservative, it’s probably more than $600 million,” he said yesterday.
“You wonder why I’m worried about ASC and what they’re delivering to the Australian taxpayers? You wonder why I wouldn’t trust them to build a canoe? Because what they’ve done on AWD (we have) had to repair.”
However, a spokesman for Prime Minister Tony Abbott was more optimistic, telling The Advertiser that they were working closely with ASC to improve their performance.
“It is early days, but the Government is confident that ASC and its partners will successfully turn the corner on this important build,” he said.
There is broad speculation of a rift between the prime minister and Senator Johnston on submarine acquisition, which may have been widened after the contribution by the Defence Minister.
Mr Abbott’s comments were seen by some as a slap on the wrist for the Defence Minister, and South Australian Federal Liberals were quick to leap to the defence of ASC and its workers, which appeared to leave Senator Johnston out in the cold.
SA Senator Simon Birmingham said there was a need for honesty about the problems at Osborne.
“But that’s no excuse for denigration of the workforce or extensive capabilities SA has, which I am confident will enjoy more jobs from increased investment in the future,” he said.
Senator David Fawcett, who has called for a competitive tender on the project, said the overseas experience showed it was not abnormal to have cost overruns and that such blowouts were worse at other sites around the world.
Senator Sean Edwards, who also came out recently to call for a competitive tender said he was “in full support of ASC and the people in it” and that through the shipbuilding inquiry he had heard enough evidence to shore up that position.
The industry, the Australian Manufacturing Workers’ Union, and a range of experts who’ve given evidence to a shipbuilding inquiry all say the submarines can be built in Australia. Shipbuilders from Sweden and Germany say they can do it here for $20 billion.
The other option is to build the submarines in Japan.
SA Labor Senator Penny Wong said Senator Johnston had “crabwalked” away from his pre-election commitment and delivered an “outrageous attack” on Australian workers.
“Particularly on those who work in SA,” she said, adding he should apologise.
Opposition Defence spokesman Stephen Conroy said Senator Johnston’s comments meant there was now “no possibility of a fair process” to bid for the work, while SA Independent Senator Nick Xenophon said the Government’s policy had “capsized”.
“The Government’s up ship creek without a paddle,” he said.
State Defence Industries Minister Martin Hamilton-Smith said the remarks were “a slap in the face” to workers.
Andrew Daniels, a pipe fitter at ASC who was in Canberra on Tuesday with the AMWU, said they would never put sailors at risk.
“We’ll give them the best,” he said.
Former Palmer United Party Senator Jacqui Lambie, who this week quit to become an independent, threw her support behind a homegrown shipbuilding industry.
“This is about our Defence forces getting the best quality and quality that they can, made by Australian hands, and that’s what it’s all about,” she said.