Dutton warns contractors on submarine, frigate deliveries

New Defence Minister delivers stern message to contractors delivering the nation’s new submarines and frigates.

Defence Minister Peter Dutton during Question Time. Picture: NCA NewsWire / Gary Ramage

New Defence Minister Peter Dutton has warned the big prime contractors delivering the nation’s new submarines and frigates that he expects the platforms to be delivered on time and on budget, and won’t allow “slippage” on Australian industry content.

Mr Dutton has revealed he has requested full briefings on all of Defence’s major programs, including the $90bn Attack-class subs and the $45bn Hunter-class frigates, “to make sure that everything is on track and on budget”.

He said program costs and time frames would blow out “from time to time”, given the huge cost of the Defence mega-platforms.

But he said he was determined to ensure Australia, and particularly Australian industry, received value for money from the investments.

“I want to make sure there is a very clear message to the primes here,” Mr Dutton told Sky News in his first major interview in his new portfolio.

“We are not going to tolerate slippage in relation to the Australian content.

“And I’ve been very clear with the secretary of the Defence department, and the (Chief of Defence) as well. that we will work to budget, and if we need additional expertise, if we need additional resources, then they will be applied to deliver these projects on time and on budget.”

The firm message to the defence multinationals follows criticism of his predecessor, Linda Reynolds, over her lack of public commentary on the projects.

Mr Dutton said the government was determined to ensure Australia’s small and medium-sized defence firms benefited from the huge investments being made.

“Making sure they are taken care of is an important part of the spend as well because it creates jobs, it creates industry, it has a massive multiplier effect in the Australian economy,” he said.

Mr Dutton also backed Australia’s special forces community, which has been rocked by the Brereton inquiry’s findings that up to 19 Australian soldiers murdered at least 39 Afghan civilians and prisoners.

“We have one of the most feared fighting machines in the world and we need to support them,” he said.

Mr Dutton said there was “a relatively small number of people who have done clearly the wrong thing”.

“I don’t want to overshadow the very significant, outstanding work, particularly that the SAS and others have done within the Australian Defence Force in the Middle East and conflicts going back a long period of time,” he said.

Mr Dutton said the government needed to do more to support veterans, and was “very open” to a royal commission into veterans’ suicide.

But he said the government had made it clear it wanted “a standing royal commission” so that future veterans’ suicides could also be given appropriate attention.

Mr Dutton said Australia would continue to work closely with the United States, together with “Quad” partners India and Japan and traditional ally the United Kingdom, to ensure regional peace.

“We don’t support militarisation of ports, we don’t support any foreign country trying to exert influence here by cyber other means, we don’t want to see conflict in our region,” he said.

He said China had “obviously” had a long-term ambition to take over Taiwan, but Australia would work with its international partners, and with the Chinese Communist Party, to prevent conflict from occurring.