Reference
1.1
On 10 February 2022 the Senate referred the following documents to the Senate Foreign Affairs, Defence and Trade Legislation Committee (the Committee) for examination and report:
Particulars of proposed additional expenditure in respect of the year ending on 30 June 2022 [Appropriation Bill (No. 3) 2021-2022];
Particulars of certain proposed additional expenditure in respect of the year ending on 30 June 2022 [Appropriation Bill (No. 4) 2021-2022];
Final Budget Outcome 2020-21; and
Advances Under the Annual Appropriation Acts for 2020-21.
1.2
A reporting date of 29 March 2022 was set for the Committee to report on its consideration of the 2021-22 Additional Estimates.
Portfolio coverage
1.3
The Committee has responsibility for examining the expenditure and outcomes of the following:
Defence Portfolio (including Veterans' Affairs); and
Foreign Affairs and Trade Portfolio.
Portfolio Additional Estimates Statements 2021-22
1.4
The Portfolio Additional Estimates Statements for 2021-22 for the Defence Portfolio, the Department of Veterans' Affairs and the Foreign Affairs and Trade Portfolio were tabled in the Senate on 10 February 2022.
Hearings
1.5
The Committee conducted public hearings on 16 and 17 February 2022.
1.6
On 16 February, the Committee examined the Department of Foreign Affairs and Trade and the Department of Veterans' Affairs, and received evidence from Senator the Hon Marise Payne, Minister for Foreign Affairs; Senator the Hon Zed Seselja, Minister for International Development and the Pacific, representing the Minister for Trade, Tourism and Investment; Senator the Hon Jonathon Duniam, Assistant Minister for Forestry and Fisheries and Assistant Minister for Industry Development, representing the Minister for Veterans' Affairs; and from officers of the departments.
1.7
On 17 February, the Committee examined the Department of Defence and the Defence Portfolio agencies, followed by the Foreign Affairs and Trade Portfolio agencies. The Committee received evidence from Senator the Hon Simon Birmingham, Minister for Finance, representing the Minister for Defence; Senator the Hon Jonathon Duniam, representing the Minister for Defence, Minister for Defence Personnel, Minister Veterans' Affairs, and Minister for Trade, Tourism and Investment; and from officers of the Department of Defence and relevant agencies.
1.8
The Committee expresses its appreciation for the assistance of the Ministers and officials who appeared.
1.9
Over the course of the hearings the Committee took evidence from the following bodies:
Defence Portfolio (including Veterans' Affairs)
Department of Veterans' Affairs
Australian Signals Directorate
Defence Housing Australia
Foreign Affairs and Trade Portfolio
Department of Foreign Affairs and Trade
Australian Trade and Investment Commission
1.10
Export Finance Australia was released from the hearing by the Committee without examination.
Questions on notice and Hansard transcripts
1.11
In accordance with Standing Order 26(9)(a), the Committee set 25 March 2022 as the date by which responses to questions on notice must be provided for questions taken on notice at the hearing and those written questions provided to the secretariat by 25 February 2022; and 26 April 2022 as the date by which responses to questions on notice must be provided for written questions on notice provided after 25 February 2022 and before the Committee's tabling of its estimates report on 29 March 2022.
1.12
The transcripts of these public hearings and answers and additional information are available on the Committee's website at:
1.14
In this report references to Hansard page numbers are to the proof transcripts. Page numbers may vary between the proof and official Hansard transcript.
Foreign Affairs and Trade Portfolio, 16 February 2022
Department of Foreign Affairs and Trade (DFAT) (non-trade programs)
1.15
Topics examined during the hearing included:
Russia-Ukraine situation, including current assessment of crisis, number of Australians in Ukraine, Australian embassy closure, Australian and international response, cooperation on cybersecurity, and possibility of sanctions (pp. 4-10)
Australia's bilateral relationship with France, including leaked text message from the President of France to the Australian Prime Minister (pp. 10-14)
Australia's commitments at the 2021 United Nations Climate Change Conference (COP26) and under updated nationally determined contributions (pp. 14-18)
Assistance to Tonga following the recent volcanic eruption and tsunami, and COVID-19 outbreak (pp. 18-19)
Latest Pacific Practise Note (p. 19)
Climate finance funding (p. 20)
Lobbying of the World Heritage Committee to vote against an endangered listing of the Great Barrier Reef (pp. 20-23)
Bipartisan approach to national security and foreign policy (pp. 23-26)
Ongoing engagement with the Solomon Islands following recent unrest and COVID-19 outbreak (pp. 27-28)
Pacific labour, including reforms under the new Pacific Australia Labour Mobility (PALM) Scheme, and impact of COVID-19 (pp. 28-29)
Amnesty International report Apartheid Against Palestinians: Cruel System of Domination and Crime Against Humanity (pp. 30-31, 45)
Consular assistance to Mr Chau Van Kam detained in Vietnam and representation to Vietnamese government (pp. 31, 77)
Myanmar, including consideration of sanctions and advocacy by the ASEAN Chair regarding release of Professor Sean Turnell (pp. 31, 42-43, 59-60, 80-81)
Repatriation of Australian women and children in camps in Syria (pp. 31-33, 60-61)
Comments by the Minister for Defence about the Chinese Communist Party backing the Opposition in the forthcoming election (pp. 34-36)
Cooperation of countries impacted by China's trade sanctions and undermining of the international trading system (pp. 36-37)
Travel advice for China (pp. 37-38)
Diplomatic boycott of the Beijing Winter Olympics (p. 38)
Representations on human rights issues, including the treatment of the Uighur community, Christians and Falun Gong practitioners (pp. 38-39)
Australians detained in China, including consular assistance in relation to Mr Yang Hengjun and Ms Cheng Lei (pp. 38, 42)
Current China-Taiwan situation and representations to China in relation to incursions by the Chinese air force (pp. 39-40)
Representations to the International Olympic Committee and Chinese Government about tennis player Ms Peng Shuai (p. 42)
Defence Minister's comments on foreign relations (pp. 40-41)
Human rights issues in India and impact on the Quad strategy (pp. 41-42)
Implementation of the Magnitsky legislation (pp. 43-44)
Israel government's designation of six Palestinian civil society organisations as terrorist organisations (p. 44)
Arrest of a former employee of Australian Embassy in Bangkok after the discovery of hidden cameras (pp. 45-48)
Investigation into the crash of vehicle carrying the United Kingdom (UK) High Commissioner, the Hon George Brandis, in Scotland (pp. 48-52)
Passport processing (pp. 53-55)
DFAT advice in relation to the naming of the High Commissioner to Vanuatu in a warrant issued by the Australian Border Force (pp. 55-58)
Report by the United Nations Special Rapporteur on Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, Professor Nils Melzer, on Mr Julian Assange (p. 61)
Current human rights situation in the Republic of the Congo (pp. 62-63)
Iran, including level of international monitoring under the suspended Joint Comprehensive Plan of Action (JCPOA), representations on human rights issues, Islamic Revolutionary Guard Corps Quds Force, public protests and teachers' strike (pp. 63-64)
Agenda Item 7 of the Human Rights Council concerning Israel (p. 64)
Australia's international advocacy in promotion of freedom of religion and belief (pp. 64-65)
Status of the new Australian Agriculture Visa program and bilateral negotiations (pp. 65-72)
Official development assistance funding (pp. 73-77)
Australian advocacy in relation to Pacific Islands Forum unity (p. 78)
Arrangements with the ABC regarding programming and content for the Pacific (p. 78)
Negotiations in relation to the East Micronesia Cable (p. 79)
COVID-19 support in the Pacific (p. 80)
Minister Dutton's attendance at the virtual ASEAN-Australia Defence Ministers' Informal Meeting (p. 81)
DFAT (trade programs)
1.16
Topics examined during the hearing included:
Australia's trade and investment plans with Israel (p. 82)
Abraham Accords and normalisation agreements entered into by Israel (p. 83)
Plan to provide LNG exports to Europe if Ukraine crisis eventuates (pp. 83-84)
Global COVID-19 supply chain issues (p. 84)
Proposed UK-Australia Free Trade Agreement, including waiver of labour market testing, public consultation process in relation to the UK's proposed changes to its excise duty tax on alcohol and implications for Australia's wine industry, and ratification processes (pp. 85-89)
Update on the TRIPS waiver before the World Trade Organisation (WTO) (pp. 89-90)
Australia seeking to join European Union action to the WTO over China’s trade practices directed at Lithuania (p. 90)
Dispute settlement processes under the Regional Comprehensive Economic Partnership (pp. 90-91)
Manuka honey trademark dispute with New Zealand (p. 91)
Defence Portfolio, 16 February 2022
Department of Veterans’ Affairs
1.17
Topics examined during the hearing included:
Claims processing, including timeframes, comments by the Interim National Commissioner for Defence and Veteran Suicide Prevention and the Royal Commission on Defence and Veteran Suicide, McKinsey & Company claims diagnostic review, reforms, and impact of delays on veteran health (pp. 94-101, 121-122)
Veteran Wellbeing Centres (pp. 103-104, 112-117)
Recognition of No. 200 Flight Royal Australian Air Force (p. 105)
Lawn mowing services under the Veterans' Entitlement Act 1986 and the Military Rehabilitation and Compensation Act 2004 (pp. 105-106)
Commencement of change in eligibility thresholds for rent assistance for veterans from 1 January 2022 (pp. 106)
Consideration of continuation of the Headstone Project (p. 106)
Plans for ANZAC Day commemorative services overseas this year, particularly in France and Turkey (pp. 107-112)
Interim National Commissioner for Defence and Veteran Suicide Prevention's Report (pp. 117-119)
Timeframe for the provision of requested documents to the Commonwealth Ombudsman (pp. 119-120)
Timeframe for the provision of requested documents to the Royal Commission on Defence and Veteran Suicide and engagement of legal support for this task (pp. 120-121)
Update on the veteran assistance dogs program (p. 122)
Defence Portfolio, 17 February 2022
Department of Defence
1.18
Topics examined during the hearing included:
Future frigate program, including timeline, achievement of milestones, estimated cost, system definition review process, mission system requirements, progress on the Type-26 reference frigate design, and Australian industry content (pp. 4-20, 21-22, 37-38, 69-70)
Submarines, including costs associated with the cancellation of the French submarine contract, and future procurement processes for nuclear powered submarine capability (pp. 20-21, 66)
Defence data storage, including remaining holdings by the Global Switch facility and migration of less sensitive data by 2025 (pp. 22-23)
310 St Kilda Road, including maintenance of surplus Defence properties, new review into the heritage value, previous failed sales, and removal from surplus list and consideration of alternative purposes (pp. 23-26)
Plans and investment in Anglesea Barracks, Tasmania (pp. 26-27)
Bipartisanship and Australia's approach to national security issues, particularly in regard to Australia's relationship with China, and the size of defence budgets under different governments (pp. 27-36)
Defence planning regarding the Russia-Ukrainian border crisis (pp. 36-37)
Office of Defence Industry Support, including progress on the opening of state and territory offices and work of the regional SME support team (pp. 38-40)
HMAS Adelaide engagement in response to Operation Tonga Assist, including the failure of the electrical system, the variety of aircraft embarked into the platform, and COVID-19 outbreak on board (pp. 40-42, 59-61)
Weapon system for the Army's replacement tanks and combat vehicles (p. 42)
Defence recruitment, including 2020-21 numbers, school attraction program, expenditure, demography, and processes to ensure younger recruits are informed on the demands of service (pp. 42-47)
Inspector-General of the Australian Defence Force inquiry into Royal Military College Duntroon, including Defence consideration of findings and Defence management of medical records (pp. 47-49)
Apache helicopter purchase process update (p. 50)
Elbit battle management system pause update (p. 50)
Hardening of defence bases in infrastructure planning (pp. 50-51)
Update on Triton unmanned aircraft acquisition (pp. 51-52)
Impact of Antarctic strategic competition on Australia's strategic position (pp. 52-53)
Defence policy regarding visits to Defence sites by candidates during election period (p. 53)
Climate change and security, including potential for cooperation with allies and greater Defence assistance in disaster events (pp. 53-55)
Defence role in supporting aged care facilities during the COVID-19 crisis (pp. 55-57)
Safety protocols for visits of nuclear-powered vessels (pp. 57-59)
Reform of Defence procurement processes (pp. 59-60)
Variation in Navy deliverables (unit availability days) from the Budget as set out in the Portfolio Additional Estimates Statements 2021-22 (pp. 61-63)
AUKUS agreement, including review, bipartisan approach to briefing and consulting Opposition, timeline, Australian industry content, projected forecast of cost, and Nuclear-Powered Submarine Taskforce (pp. 63-68)
Review of security assessment of the Port of Darwin (p. 68)
SEA 1905 Maritime Mine Countermeasures Program schedule and level of Australian industry content (pp. 68-69)
Australian Signals Directorate (ASD)
1.19
Topics examined during the hearing included:
Federal election, including appropriate protections to safeguard against foreign interference and online voting security precautions (pp. 71-72)
Cyber-attacks on Australian media organisations, including as a consequence of the Log4j vulnerability in December 2021 (pp. 71-73)
Current cyber threat environment in Ukraine and ASD assistance g (pp. 73-74)
Defence Housing Australia
1.20
Topics examined during the hearing included:
Mount Lofty Development update (p. 74)
Quality and location of defence housing, including survey work, Defence's modernisation program and flexible housing trial in Puckapunyal (pp. 75-76)
Australian War Memorial
1.21
Topics examined during the hearing included:
Recognition of No. 200 Flight RAAF support for Z Special Unit (p. 77)
Update on redevelopment project (p. 77)
Consultation on content of new galleries (p. 78)
Memorial input for the 50th anniversary of the end of Australian involvement in the Vietnam war (p. 78)
Big Things in Store 2022 exhibition (p. 79)
Availability of oral histories through transcription and digital form (pp. 79-80)
Napier Wall Art Prize and the mental health benefits from veterans expressing themselves through art (p. 80)
Foreign Affairs and Trade Portfolio, 17 February 2022
Australian Trade and Investment Commission
1.22
Topics examined during the hearing included:
Export Market Development Grants scheme, including operation of the reformed scheme, and number and details of applications (pp. 82-91)
COVID-19 Consumer Travel Support Package (pp. 91-92)
Business events grants program (pp. 92-94)
Zoos and aquarium sector grant funding (p. 94)
Regional Tourism Recovery Program (p. 95)
Tourism Australia
1.23
Topics examined during the hearing included:
Recent comments by the Managing Director of Tourism Australia concerning consumer sentiment towards Australia (p. 95)
UK surveys about travel intentions in regard to Australia (p. 95)
Roll out of new global campaign 'Don't Go Small. Go Australia' (p. 97)
China market, including expenditure, work on rebuilding the market and impact of the drop-off (pp. 99-100)
Top 20 best Australian beaches campaign (pp. 100-101)
Senator the Hon Eric Abetz
Chair