French submarine contractor DCNS boss avoids questions about military leaks

THE boss of the company Australia is about to hand $50 billion to was not keen to discuss a massive leak of military secrets that could put lives in danger.

DEFENCE Industry Minister Christopher Pyne has shot down suggestions Australia should be worried by a catastrophic data breach at the French company entrusted with the $50 billion project to build 12 Australian submarines.

Speaking at the base of French company DCNS in Cherbourg, he said he was “not concerned” 22,000 files with critical information relating to six submarines for the Indian government had been leaked because it is an “entirely different submarine”.

“I’m not concerned about them because they weren’t about the Barracuda submarine,” he said in reference to the Shortfin Barracuda which Australia has commissioned.

“It’s a very different submarine to the Scorpene submarine which is DCNS’ export product so I’m not concerned as in doesn’t affect the Australian contract.”

He blamed the leak on “industrial espionage” and said it will have “no bearing whatsoever on the security of the contracts” Australia has with the French company.

He said the new deal will have the same security arrangements as the existing Collins Class submarine which is “second to none”.

“I’m absolutely confident with the discussions with DNCS, with the discussions with the French government and others about how to protect our security,” Mr Pyne said.

The French company behind the submarine build has been involved in a serious data breach. Picture: Thibault Camus

In April the French company beat German and Japanese rivals for the $50 billion contract to build 12 submarines in Australia over 30 years.

It’s the largest military investment Australia has made and they have been described as the most “potent weapons” the country will own.

However in August DCNS was left red-faced after 22,000 documents stolen by a former worker on a USB stick ended up in Australian hands. The classified information related to $3.9 billion worth of Scorpene submarines commissioned by the Indian government and included critical information including what frequency intelligence is gathered at, diving depths, range, the torpedo launch system and even where the crew can speak on board without being detected.

The breach was revealed by a former submariner Rex Patrick who now works for independent Senator Nick Xenophon. Mr Patrick claimed he passed the information to Defence officials as early as 2011 who failed to follow up on the issue.

That claim is disputed by the government but the breach was raised by Prime Minister Malcolm Turnbull with French President Francois Hollande at the G20.

The Prime Minister has previously said the leak is “highly regrettable” and said it is “absolutely critical” DCNS keeps information secure.

Seaman in training Callum Donald studies his part three submarine sea qualification taskbook inside the weapons stowage compartment of one of the Navy’s existing submarines. Picture: Royal Australian Navy

Despite the huge risks for Australia if a similar breach was to occur, Mr Pyne was dismissive of questions around whether the $50 billion plans are secure.

When DCNS CEO Herve Gillou was questioned on the issue Mr Pyne said he was “not here to be a punching bag for the Australian press”.

“I hope you haven’t flown all the way to Cherbourg to have a fight,” he added.

Since the leak a separate security agreement has since been signed over the deal although details have not been made public. Mr Gillou denied he called the breach “economic warfare” and said he did not know about it during the tender process.

“We have filed a complaint to the French justice and the French justice department will do its job and then deliver a conclusion,” he said.

A spokesman for DCNS Australia said there had been some “tightening up” of security since the “embarrassing” leak but it was “still very difficult to stop rogue employees”.

Australia’s future submarines come with the latest technology for stealthy movement in the water and will cost $50 billion over 30 years to build. Picture: DCNS/Ron Erdos.

Australian engineers are already in Cherbourg in the first stages of the 30-year deal that will see a shipbuilding site expanded in Adelaide creating 2800 jobs. So far 145 companies have signalled interest in the project with 25 pre-approved for work related to the process.

Mr Pyne also took aim at Mr Xenophon who facilitated the leak to The Australian newspaper, saying it was a ploy for media attention rather than genuine whistleblowing to expose wrongdoing. He also signalled to US President-elect Donald Trump as more assertive Australia in the years ahead.

“We have a wealthy country and as a consequence we have a responsibility do our part, to, as Donald Trump says not be strategic bludgers but actually lift our percentage of spending to two per cent, which we’ll do by 2020/21,” he said.

“We need 12 submarines so that we have the most potent weapon in our armaments to replacing the Collins class submarines. “

[e-mail]

An Australian Submarine conducts personnel transfers with a MRH-90 Taipan helicopter. Picture: Royal Australian Navy.