Chapter 2 - Key Issues

Chapter 2Key Issues

2.1This chapter provides an overview of the key issues raised during the Foreign Affairs, Defence and Trade Legislation Committee 2024–25 Additional Estimates hearings. This report does not attempt to analyse the evidence presented to the Committee during its examination of the proposed 2024–25 additional expenditure. The page numbers below reference the relevant Committee Hansard transcripts.

Defence Portfolio, 26 February 2025

2.2The Committee discussed a wide range of topics relating to the Defence portfolio, including those outlined in the following sections.

Department of Defence

2.3Mr Greg Moriarty AO, Secretary of the Department of Defence, and Admiral David Johnston AC RAN, Chief of the Defence Force, made opening statements.[1]

2.4The following issues were discussed:

People's Liberation Army Navy task group positioned off Australia’s east coast (pp. 8–14; 18–24; 28–31; and 39–45);

Hunter Class frigates and the general-purpose frigate program (pp. 14–16);

Australian Defence Force (ADF) assistance in the recent Queensland floods (pp. 17–18);

military enlistment challenges (pp. 24–25);

Covid vaccine requirements for overseas deployment (pp. 25–26);

removal of security clearances from ADF personnel (pp. 26–28);

One Defence Data program and related acquisitions (pp. 31–35);

PFAS (per and polyfluoroalkyl substances) contamination concerns in communities around bases and airports (pp. 35–36);

ADF recruitment targets and foreign citizens enlistment scheme (pp. 37–39);

Projects of Concern including Collins Class sustainment (p. 71);

weapon export permits to Israel and provision of military equipment to Ukraine (pp. 80–87);

Henderson consolidation (pp. 88–89); and

Afghanistan compensation scheme (pp. 88–90).

Australian Submarine Agency

2.5Vice Admiral Jonathan Mead AO RAN, Director-General of the Australian Submarine Agency, made an opening statement.[2]

2.6The following topics were discussed:

update on the progression of AUKUS and payment schedule (pp. 95–97);

meetings with United States (US) counterparts (pp. 97–99);

progression of United Kingdom Rolls-Royce facility (pp. 100–109); and

staff flight policies (pp. 109–112).

Australian Signals Directorate

2.7The Committee discussed the following topics:

risks of Chinese made electric vehicles, including briefings to the Minister for Home Affairs (pp. 112–113); and

Australian Signals Directorate advice regarding TikTok and DeepSeek (pp. 113–114).

Defence Housing Australia

2.8The following issues were discussed:

booking processes for accommodation on Defence bases (pp. 115–116); and

satisfaction surveys and complaints relating to cancellation of properties (p. 117).

Department of Veterans’ Affairs

2.9Ms Alison Frame, Secretary of the Department of Veterans’ Affairs, made an opening statement.[3]

2.10The Committee discussed the following topics:

progression of the claims backlog (pp. 117–119; and 122–123);

Defence and Veterans' Service Commission (pp. 120–121); and

Headstone project funding (p. 121).

Foreign Affairs and Trade Portfolio, 27 February 2025

2.11The Committee discussed a wide range of topics relating to the Foreign Affairs and Trade portfolio, including those outlined in the following sections.

Department of Foreign Affairs and Trade (non-trade programs)

2.12Senator the Hon Penny Wong, Minister for Foreign Affairs, and Ms Jan Adams AO PSM, Secretary of the Department of Foreign Affairs and Trade (DFAT), made opening statements.[4]

2.13The following issues were discussed:

People’s Liberation Army Navy live firing exercise and notification best practice (pp. 8–12);

Australia’s relationship with Pacific Island countries, including Nauru, Palau, Solomon Islands and Papua New Guinea (PNG) (pp. 12–14; and 21–22);

International Criminal Court arrest warrants for leaders of Hamas and members of the Government of Israel (pp. 14–15);

President Trump’s America First agenda and withdrawal from the World Health Organisation (p. 16);

Foreign Minister's meeting with PRC counterparts (pp. 17–21);

PNG entering NRL competition (p. 22);

cyber security assistance to Pacific Island countries (pp. 23–24);

US tariffs and implications for Australia (pp. 33–34);

United Nations Relief Works Agency (UNRWA) funding (pp. 24–30);

obligations under the United Nations Convention on the Prevention and Punishment of the Crime of Genocide(1948) (pp. 31–33);

Australian support after Vanuatu earthquake (pp. 35–36);

Australia's United Nations voting record (pp. 36–41);

Asian Zero Emissions committee (pp. 41–42);

Southeast Asia Economic Strategy (pp. 50–53);

Indo-Pacific NGO Blended Finance Accelerator (p. 54);

departmental consulting contracts (pp. 55–56);

First Nations Ambassador (pp. 56–61);

compliance with the Non-Proliferation Treaty regarding visiting US Virginia Class submarines (pp. 69–70);

Australia's sanctions regime (pp. 70–73);

reopening of Australia's embassy in Kyiv (pp. 73–76);

updates on Australians incarcerated overseas (p. 78); and

Pacific Australia Labour Mobility scheme (pp. 80–81).

Department of Foreign Affairs and Trade (trade programs)

2.14Mr George Mina, Deputy Secretary, Trade and Investment Group, made an opening statement.[5]

2.15The following topics were discussed:

trade tariffs and Australia's economic relationship with the US (pp. 80–88);

live sheep exports (pp. 88–92);

Carbon Leakage Review (pp. 92–95);

European Union deforestation regulation (pp. 95–97); and

status of Australia's free trade agreements and the Trans-Pacific Partnership (pp. 97–100).

Export Finance Australia

2.16The Committee discussed the status of PsiQuantum funding (pp. 103–104).

Australian Trade and Investment Commission

2.17Mr Daniel Boyer, acting Chief Executive Officer, tabled his opening statement.[6]

2.18The Committee canvassed the following topics:

Export Market Development Grants debt recovery (pp. 105–107);

Simplified Trade Systems (p. 108); and

sheep meat exports (pp. 109–110).

Tourism Australia

2.19Ms Phillipa Harrison, Managing Director, tabled her opening statement.[7]

2.20The following topics were discussed:

efforts to target core international markets (pp. 112–114); and

Australian National Audit Office findings regarding procurement (pp. 114–115).

Senator Raff Ciccone

Chair

Footnotes