Martin Hamilton-Smith and Christopher Pyne clash over Techport lease

DEFENCE Industries Minister Martin Hamilton-Smith is in yet another stoush with federal counterpart Christopher Pyne over defence spending.

DEFENCE Industries Minister Martin Hamilton-Smith is in yet another stoush with federal counterpart Christopher Pyne over defence spending, this time over who pays for the use of South Australia’s ship building hub.

Mr Hamilton-Smith said his former party colleague was attempting to use facilities at Techport for its Future Frigate and Offshore Patrol Vessel programs without paying for it.

Federal Minister for Defence Industry Christopher Pyne during Question Time this week. Picture: AAP Image/Mick Tsikas

In a letter to Mr Pyne he asked him to reconsider his position, stating he believed other states had not been required to gift the Commonwealth the use of ship-building facilities.

“The agreed and long-established legal guidelines on acquisitions from the states by the Commonwealth should apply,” Mr Hamilton-Smith said in the letter.

He stressed the State Government wanted the important defence projects to “proceed without delay” but suggested a more lucrative deal needed to be struck before it agreed to lease the facilities.

State Defence Industries Minister Martin Hamilton-Smith. Picture: Dylan Coker

Mr Hamilton-Smith said further negotiations needed to be held in coming weeks to find common ground.

“South Australian taxpayers spent $400 million in this precinct – that’s taxpayers’ money and of course they already pay taxes for defence to the Commonwealth,” he said.

“While the Commonwealth would like it for free, I don’t think the South Australian taxpayers would be happy about that.

“The same arrangements apply to this as in every other state in Australia when the Commonwealth has tried to acquire, by sale or lease land and we now need to go through that process and get on with it now.”

Mr Pyne said only that the program “is on schedule and we are working well with the SA Government to deliver it.”

Mr Hamilton-Smith and Mr Pyne have traded insults publicly since the Labor Minister defected from the Liberal Party in 2014.

Last year, Mr Pyne didn’t invite the state MP to a defence industry round table and then said he expected to have “very little” to do with Mr Hamilton-Smith when he was appointed as Defence Industries Minister.

“All state governments have very little to do with defence industry,’’ Mr Pyne said last year.

“I note for example that Marise Payne as the Defence Minister hasn’t needed to meet with Martin Hamilton-Smith to be able to do her job well on a national basis, or for that matter on a South Australian basis.”

Originally published as Martin Hamilton-Smith and Christopher Pyne clash over Techport lease