Footnotes
Chapter 2 - The Sale Process
[1] Max T.
Hawkins, ‘ADI moves to World Competitive Ammunition Manufacture’, Defence
Industry and Aerospace Report, vol. 9, no. 24, December 1990, p. 10.
[2] ADI
Annual Report 1991, p. 1.
[3] Defence
Report 1989–90, Program 2: Defence Development, p. 71.
[4] Defence
Report 1989–90, Program 4: Defence Production, p. 85.
[5] Hawkins,
‘ADI moves to World Competitive Ammunition Manufacture’, pp. 10–11.
[6] Australian
Defence Report, 24 June 1999, p. 6.
[7]
ADI Annual Report 1991, p. 6.
[8] ‘ADI
Reaches Mid-point in New Corporate Form’, p. 5.
[9] Company
profits were also bolstered by the completion of major contracts for small arms
completed at Lithgow and the sale of redeveloped properties at Footscray and
Maribyrnong. A side effect of the latter was that ADI withdrew from its
environmental decontamination business in Europe, with local work in this area
largely completed.
[10] 80 per
cent design and 70 per cent material, ‘Year in Review’, ADI Annual Report
1997, p. 3.
[11] Australian
Defence Report, 24 June 1999, p. 6.
[12] Press
Release, Minister of Defence, Senator Robert Ray, 27 June 1995.
[13] Committee
Hansard 19 November 1999, p. 113.
[14] Bendigo
Advertiser, Thursday, 15 February 1996.
[15] See Ken
Harris, Committee Hansard 19 November 1999, p. 113.
[16] In the
employee newsletter Pursuit, March 1997. Quoted in ‘Background to ADI’s
Privatisation’, Privatisation News, ADI Homepage (21 September 1999).
[17] For
Harris see ‘ADI Welcomes Announcement’, 17 August 1999, ADI News Releases, ADI
Homepage (16 September 1999) and for Liberal perspectives the Member for
Mcpherson (QLD Liberal Party), Mr Peter White, in response to the Defence
Minister’s statement launching ADI, House Hansard, 10 May 1989, p. 2348,
[in particular, 1; 4–5].
[18] ‘Background
to ADI’s Privatisation’, Privatisation News, ADI Homepage (21 September
1999).
[19] ‘ADI
Limited—Appointment of Advisers’, Media Release, Minister for Finance and
Administration the Hon John Fahey, MP, 1 July 1997 35/97. Defence
Acquisition Organisation Internet site: http://www.dao.defence.gov.au/media/9-12-97_ADI_future.htm
(16 September 1999).
[20] OASITO
submission, p. 8
[21] OASITO
submission, p. 8.
[22] OASITO
submission, p. 1.
[23] OASITO
submission, p. 25.
[24] OASITO
submission, pp. 9–10.
[25] OASITO
submission, pp. 11–12.
[26] OASITO
submission, p. 12.
[27] Committee
Hansard, 19 November 1999, p. 135.
[28] ‘The
Future for ADI Limited and Australian Submarine Corporation Pty Limited’, Joint
Media Release, Minister for Finance and Administration the Hon John Fahey, MP
and Minister for Defence, the Hon Ian McLachlan, AO, MP, 9 December 1997,
83/97, Defence Acquisition Organisation Internet site (16 September
1999).
[29] OASITO
submission, p. 18.
[30] ‘Sale of
ADI’, Minister for Finance and Administration, the Hon John Fahey, MP, 22 April
1998, 37/97, ADI Homepage (21 September 1999).
[31] Reported
Andrew White, ‘Plant Upgrade Lifts ADI Sale Outlook’, Weekend Australian,
11 July 1998, p. 54.
[32] OASITO
submission, p. 19.
[33] OASITO
submission, p. 19.
[34] ‘Sale of
ADI Limited’, Joint Media Release, Minister for Finance and Administration the
Hon John Fahey, MP and Minister for Defence, the Hon Ian McLachlan, AO, MP, 12
June1998 55/98 Defence Acquisition Organisation Internet site (16
September 1999)
[35] OASITO
submission, p. 4.
[36] ‘Defence
and ADI Sign Ammunition Supply Agreements’, Joint Media Release, Minister for
Finance and Administration the Hon. John Fahey, MP and Minister for Defence,
the Hon Ian McLachlan, AO, MP, 10 July 1998, Canberra, 65/97
[37] Committee
Hansard, 26 October 1999, p. 93.
[38] ‘Sale of
ADI Limited’, Joint Media Release, Minister for Finance and Administration the
Hon John Fahey, MP and Minister for Defence, the Hon Ian McLachlan, AO, MP, 31
July 1998, 72/98 Defence Acquisition Organisation Internet site (16 September
1999)
[39] OASITO
submission, p. 19 and supplementary submission, p. 3.
[40] OASITO
submission, pp. 21–4.
[41] OASITO,
supplementary submission, p. 23.
[42] Jason
Clout, ‘ADI Bids to be in Place by June: Fahey’, Australian Financial Review,
8 May 1999, p. 52.
[43] OASITO,
supplementary submission, p. 3.
[44] OASITO,
submission, p.5.
[45] OASITO,
supplementary submission, p. 5.
[46] Committee
Hansard 26 October 1999, p. 89.
[47] OASITO,
submission.
[48] Committee
Hansard 25 October 1999, p. 27.
[49] Mr Sharp, Committee Hansard, 25 October
1999, pp. 9–10.
[50] Committee
Hansard 25 October 1999, p. 60.
[51] See ‘Five
to Contest ADI Sale’, Headlines, Australian Defence Business Review, 31
July1998, p. 5.
[52] Committee
Hansard 26 October 1999, p. 101.
[53] Committee
Hansard 26 October 1999, pp. 101-02.
See also discussion of intellectual property in Chapter 4.
[54] Committee
Hansard 26 October 1999, pp. 100–01.
[55] Committee
Hansard 26 October 1999, p. 100.
[56] Committee
Hansard 26 October 1999, p. 100.
[57] Committee Hansard, 19 November 1999, p. 121.
[58] Committee Hansard, 19 November 1999, p. 118.
[59] Committee
Hansard 25 October 1999, p. 27.
[60] Committee
Hansard, 25 October 1999, pp. 9-10.
[61] Committee Hansard, 19 November 1999, pp. 7–8.
[62] For
example, between Marconi Electronic Systems with British Aerospace, or Marconi
Sonar with Thomson.
[63] Committee Hansard, 19 November 1999, p. 2.
[64] Committee
Hansard 25 October 1999, p. 58.
[65] SECA’s
former Managing Director, Dr John White, put the cost at around $10 to $12
million, see Committee Hansard, 19 November 1999, p. 142; Mr John
Favoloro of Tenix put overall costs of
bidding at in excess of $2.5 million dollars, see Committee Hansard, 25 October 1999, p. 57; and see Mr
Shepherd of Transfield at Committee
Hansard, 25 October 1999, p. 37.
[66] Committee
Hansard, 26 October 1999, p. 89.
[67] Committee
Hansard, 26 October 1999, p. 90.
[68] Committee Hansard, 19 November 1999, p. 117.
[69] Committee Hansard, 19 November 1999, p. 142.
[70] Committee Hansard, 19 November 1999, p. 115.
[71] Committee Hansard, 19 November 1999, p. 115.
[72] Committee Hansard, 29 November 1999, p. 172.
[73] Committee Hansard, 29 November 1999, p. 171.
[74] Committee Hansard, 29 November 1999, p. 171–72.
[75] Committee
Hansard, 29 November 1999, p. 172.
[76] Committee
Hansard, 19 November 1999, pp. 116-17.
[77] Mr
Michael Hutchinson, Committee Hansard, 26 October 1999, p. 90.
[78] Announced
Joint Media Release, ‘The Future Sale of ADI Limited and the Australian
Submarine Co-operation Pty Limited’, 9 December 1997 83/97.
[79] See Mr
Michael Hutchinson, OASITO, Committee Hansard, 29 November 1999, p. 170.
[80] Gary
Brown, Australia’s Security: Issues for the New Century, Australian
Defence Studies Centre, March 1994.
[81] The bid
was based on the proviso that SECA could also purchase the Government’s shares
in the ASC. Dr John White, Committee Hansard, 19 November 1999, p. 140.
[82] See ‘Sale
of ADI Limited’, Joint Media Release, 2 November 1999 71/99 and Stephen
Spencer, FED: ‘ADI Sold for $346.7 Million’, 2 November 1999, Australian
General News, Parliamentary News Service.
[83] Committee Hansard, 19 November 1999, p. 119; Board of Director’s
estimate of $162.4 book value quoted in Trevor J. Thomas, ‘Thomson Pays
Twice for ADI’, Advance Copy of Australian Defence Business Review
Article, vol. 18, no. 17, 26 November 1999.
[84] OASITO, Committee
Hansard, 29 November 1999, p. 171.
[85] Trevor J.
Thomas, ‘Thomson Pays Twice for ADI’, Advance Copy of Australian Defence
Business Review Article, vol. 18, no. 17, 26 November 1999.
[86] Thomas,
‘Thomson Pays Twice for ADI’.
[87] Committee
Hansard, 19 November 1999, p. 115.
[88] Media
Release, Transfield Thomson–CSF, Non-ADI News Releases, ADI Homepage (16
September 1999)
[89] See Committee
Hansard 25 October 1999, p. 47.
[90] See
Shepherd, Committee Hansard 25
October 1999, p. 47; and Harris, Committee Hansard, 19 November
1999, p. 118.
[91] Committee
Hansard, 26 October 1999, p. 95.
[92] Committee
Hansard, 19 November 1999, p. 118.
[93] OASITO,
submission, p. 18.
[94] Committee
Hansard, 26 October 1999, p. 94.
[95] Committee
Hansard, 26 October 1999, pp. 94, 95.
[96] Committee
Hansard, 29 November 1999, p. 176.
[97] Mr Mervyn
Smith, submission.
[98] Letter
dated 18 May 1999 from Group General Manager Business Development, ADI, to
OASITO, p. 4, attached to submission of Mr Mervyn Smith.
[99] Letter
dated 18 May 1999 from Group General Manager Business Development, ADI, to
OASITO, p. 4, attached to submission of Mr Mervyn Smith.
[100] Letter
dated 1 June 1999 from Senior Director, OASITO, to Group General Manager
Business Development, ADI, attached to submission of Mr Mervyn Smith.
[101] Committee
Hansard, 26 October 1999, p. 94.
[102] Committee
Hansard, 26 October 1999, p. 94. Later,
Mr Hutchinson explained that these conditions apply once Commonwealth equity
falls below 50 per cent. See Committee Hansard, 29 November 1999,
p. 175.
[103] Committee
Hansard, 26 October 1999, pp. 94–95.
[104] Committee
Hansard, 29 November 1999, p. 176.
[105] Committee
Hansard, 19 November 1999, p. 130.
Chapter 3 - The Australian Submarine Corporation and the Sale of ADI
[1] Joint
Media Release, ‘The Future Sale of ADI Limited and the Australian Submarine
Co-operation Pty Limited’, 9 December 1997, 83/97.
[2] ‘The
Future for ADI Limited and Australian Submarine Corporation Pty Limited’, Joint
Media Release, December 1997 83/97, Defence Acquisition Organisation
Internet site (16 September 1999).
[3] OASITO,
submission, p. 12.
[4] Committee
Hansard, 19 November 1999, pp. 120.
[5] See
Report to the Minister for Defence on the Collins Class Submarine and Related
Matters: Summary and Recommendations, attachment Media Statement, the Hon. John
Moore, MP, Minister for Defence, ‘Reform of the Defence Acquisition’, 1 July
1999.
[6] See for
example, President Mr Lars Joseffson of Celsius, owner of ASC shareholder
Kockums defence of the Collins submarine on 20 November 1998.
[7] Committee
Hansard, 26 October 1999, p. 96–97.
[8] Committee
Hansard, 26 October 1999, pp. 91–92.
[9] Committee
Hansard, 26 October 1999, pp. 103–04.
[10] Committee
Hansard, 25 October 1999, p. 66
[11] Committee
Hansard, 25 October 1999, p. 47.
[12] Committee
Hansard, 25 October 1999, p. 47.
[13] Committee Hansard, 19 November 1999, p. 134.
[14] Philip
Hopkins, ‘Transfield Project Seen as Model’, Age, 17 August 1998, p. B4.
[15] Committee Hansard, 19 November 1999, p. 136.
[16] This
totalled 80 percent. The remaining 20 per cent would be filled by the ‘most
appropriate Australian company’ with the Clough Group of Perth keenly
interested. See Committee Hansard, 19 November 1999, p. 136.
[17] Committee
Hansard, 29 November 1999, p. 158.
[18] Reported
in Michael Gordon, ‘When the Boat Doesn’t Come In’, Age, 26 June 1999,
p. 4.
[19] Committee
Hansard, 19 November 1999, p. 140.
[20] Committee
Hansard, 19 November 1999, p. 136.
[21] Committee
Hansard, 19 November 1999, p. 136.
[22] Committee
Hansard, 29 November 1999, pp. 148–49.
[23] Committee
Hansard, 29 November 1999, p. 150.
[24] Presumably,
the 2 per cent held by another firm would also be obtained by the consortium. Committee
Hansard, 19 November 1999, p. 138.
[25] Mr
Michael Hutchinson, OASITO, Committee Hansard, 29 November 1999,
p. 146.
[26] Committee
Hansard, 29 November 1999, p. 146.
[27] Committee
Hansard, 29 November 1999, p. 151.
[28] Committee
Hansard, 29 November 1999, p. 162.
[29] Committee
Hansard, 19 November 1999, p. 137.
[30] Committee
Hansard, 29 November 1999, p. 146.
[31] Committee
Hansard, 29 November 1999, p. 147.
[32] Committee
Hansard, 29 November 1999, p. 147.
[33] ‘ADI
Battleground for Families at War’, Australian Financial Review, 14 May
1999, pp. 48, 80.
[34] Committee Hansard, 29 November 1999, p. 169.
[35] Committee Hansard, 29 November 1999, p. 169.
[36] Committee Hansard, 29 November 1999, pp. 169–70.
[37] Committee Hansard, 29 November 1999, p. 169.
[38] Committee Hansard, 29 November 1999, p. 169.
[39] OASITO,
letter to Committee dated 4 January 2000.
Chapter 4 - Industry issues arising from the ADI Sale
[1] Committee
Hansard, 25 October 1999, p. 19.
[2] Committee
Hansard, 25 October 1999, p. 25.
[3] Council
of the City of Lithgow, submission.
[4] OASITO,
submission, p. 18.
[5] Committee
Hansard, 29 November 1999, p. 174.
[6] Mr Tony
Shepherd, Chief Executive – Project Development of Transfield Pty Ltd,
inadvertently referred to this period as three years rather than 18 month when
he gave evidence to the Committee on 25 October 1999 (p. 38). He corrected
this error in a letter dated 18 November 1999.
[7] Transfield
Thomson-CSF, submission, p. 19.
[8] Committee
Hansard, 25 October 1999, p. 38.
[9] Joint
Media Release, ‘Sale of ADI Limited—Selection of Preferred Purchaser’, 17
August 1999, 42/99, p.1.
[10] Joint
Media Release, ‘Sale of ADI Limited—Selection of Preferred Purchaser’, 17
August 1999, 42/99, pp. 1–2.
[11] See for
example: Canberra Times, 18 August 1999; Australian Financial Review,
5 August 1999, pp. 1, 10; Age, 26 June 1999, p. 4 and Australian
Financial Review, 25 June 1999, p. 21.
[12] FED: ‘No
Worries about French Interest in ADI’, Australian General News, 5 August
1999.
[13] See for
example submissions from: Mr Robert Downey; Ms Pauline Mitchell, Secretary,
Campaign for International Cooperation and Disarmament; Mr Bob Cameron MP,
State Member for Bendigo West; Dr Mary Maxwell and Ms Karen Kyle, Secretary,
Bendigo Trades Hall Council.
[14] Mr Robert
Downey, submission, p. 1.
[15] Mr
Leonard Russell Fallon, AFAIM, CPI, FIPEA, submission, p. 7.
[16] Committee Hansard, 25 October 1999, p. 31.
[17] Committee Hansard, 25 October 1999, p. 31.
[18] Committee Hansard, 25 October 1999, p. 31.
[19] Committee Hansard, 25 October 1999, p. 28
[20] See
Leonard Fallon, submission, pp. 6–7.
[21] Committee
Hansard, 29 November 1999, p. 165.
[22] Committee
Hansard, 25 October 1999, p. 27.
[23] Committee
Hansard, 25 October 1999, p. 45.
[24] Committee
Hansard, 29 November 1999, p. 174.
[25] Committee Hansard, 25 October 1999, p. 38.
[26] Committee Hansard, 25 October 1999, p. 40.
[27] Committee
Hansard, 19 November 1999, p. 121-22.
[28] Committee
Hansard, 25 October 1999, p. 41.
[29] Committee
Hansard, 25 October 1999, p. 41.
[30] Committee
Hansard, 19 November 1999, p. 124.
[31] Transfield
Thomson–CSF, submission p. 25.
[32] Transfield
Thomson–CSF, submission pp. 25–6.
[33] Transfield
Thomson–CSF, submission pp. 27.
[34] Committee
Hansard, 25 October 1999, p.36.
[35] Committee
Hansard, 25 October 1999, p. 36.
[36] Committee
Hansard, 26 October 1999, p. 85.
[37] Committee
Hansard, 26 October 1999, p. 85.
[38] Australian
Financial Review, 25 June 1999, p. 21.
[39] Mr
Leonard Russell Fallon, AFAIM, CPI, FIPEA, submission, p. 7.
[40] Committee
Hansard, 26 October 1999, p. 101.
[41] Committee
Hansard, 26 October 1999, p. 98.
[42] OASITO,
submission, p. 13.
[43] Committee
Hansard, 29 November 1999, p. 172.
[44] Committee Hansard, 26 October 1999 p. 98.
[45] Transfield
Thomson-CSF, submission pp. 27–8.
[46] Committee
Hansard, 25 October 1999, p. 27.
[47] Geoffrey
Barker, ‘French Bid in ADI Sale Exposes Raw Nerves’, Australian Financial
Review, 5 August 1999, p. 10.
[48] Lincoln
Wright, ‘PM Approves ADI Sale’, Canberra Times, 18 August 1999.
[49] Committee Hansard, 19 November 1999, p. 108.
[50] Australian
Defence Magazine, October 1999,, pp 68-70.
[51] Committee
Hansard, 25 October 1999, p. 33.
[52] Committee Hansard, 25 October 1999, p. 28.
[53] Dr John
White, Committee Hansard, 19
November 1999, p.134; Mr John Favaloro, Committee Hansard, 25
October 1999, p. 54; Mr Chris Rodwell, Committee Hansard, 26 October
1999, p. 72.
[54] Committee Hansard, 25 October 1999, pp. 4, 7.
[55] Committee Hansard, 25 October 1999, p. 8.
[56] Committee Hansard, 25 October 1999, p. 55.
[57] Annual
listing of world defence contractors as published in the US Defence News.
See Committee Hansard, 25 October 1999, p. 55.
[58] Committee Hansard, 19 November 1999, p. 123.
[59] Committee Hansard, 19 November 1999, p. 110.
[60] Committee Hansard, 25 October 1999, p. 32.
[61] Committee Hansard, 25 October 1999, p. 32.
[62] Committee Hansard, 25 October 1999, pp. 27-28.
[63] Committee Hansard, 25 October 1999, p. 34.
[64] Committee Hansard, 25 October 1999, p. 33.
[65] Committee Hansard, 25 October 1999, p. 34.
[66] Committee Hansard, 25 October 1999, p. 34.
[67] Committee
Hansard, 19 November 1999, p. 123.
[68] Committee Hansard, 26 October 1999, pp. 84-85.
[69] Committee Hansard, 25 October 1999, p. 34.
Chapter 5 - Structure of the Australian Defence Industry
[1] These
matters were considered under term of reference 2(b).
[2] Although
most witnesses said there were about five prime contractors, the Defence
Council said there were 27 companies that had submitted bids for prime
contracts.
[3] Committee
Hansard, 25 October 1999, p. 1.
[4] Defence
Council of the Australian Industry Group, submission.
[5] Committee
Hansard, 26 October 1999, pp. 74-75.
[6] Committee
Hansard, 26 October 1999, p. 103.
[7] Committee
Hansard, 25 October 1999, p. 15.
[8] Committee
Hansard, 25 October 1999, p. 15.
[9] Committee
Hansard, 25 October 1999, p. 64.
[10] Committee
Hansard, 25 October 1999, p. 28.
[11] Committee
Hansard, 25 October 1999, pp. 56-57.
[12] Committee
Hansard, 25 October 1999, p. 57.
[13] Committee
Hansard, 25 October 1999, p. 16.
[14] Committee
Hansard, 25 October 1999, p. 16.
[15] Committee
Hansard, 25 October 1999, pp. 16-17..
[16] Committee
Hansard, 25 October 1999, p. 64.