Reference
1.1
On 11 May 2021 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 expenditure in respect of the year ending on 30 June 2022; and
Particulars of certain proposed expenditure in respect of the year ending on 30 June 2022.
1.2
A reporting date of 13 July 2021 was set for the Committee to report on its consideration of the 2021-22 Budget 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 Budget Statements 2021-22
1.4
The Portfolio Budget 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 11 May 2021.
Hearings
1.5
The Committee conducted public hearings from 1 to 4 June 2021.
1.6
On 1 and 2 June, the Committee examined the Defence Portfolio (including Veterans' Affairs) and received evidence from Senator the Hon Marise Payne, Minister for Foreign Affairs, representing the Minister for Defence; Senator the Hon Zed Seselja, Minister for International Development and the Pacific, representing the Minister for Defence; Senator the Hon Jonathon Duniam, Assistant Minister for Forestry and Fisheries and Assistant Minister for Industry Development, representing the Minister for Defence; Senator the Hon Amanda Stoker, Assistant Minister for Women, Assistant Minister to the Attorney-General and Assistant Minister for Industrial Relations, representing the Minister for Veterans' Affairs and Minister for Defence Personnel; and from officers of the Department of Defence, Department of Veterans' Affairs, and relevant portfolio bodies.
1.7
On 3 and 4 June, the Committee examined the Foreign Affairs and Trade Portfolio and received evidence from Senator the Hon Marise Payne, Minister for Foreign Affairs; Senator the Hon Jonathon Duniam, representing the Minister for Trade, Tourism and Investment; and from officers of the Department of Foreign Affairs and Trade and relevant portfolio 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)
Naval Shipbuilding Expert Advisory Panel
Australian Signals Directorate
Department of Veterans' Affairs
Foreign Affairs and Trade Portfolio
Department of Foreign Affairs and Trade
Australian Trade and Investment Commission
1.10
Defence Housing 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 23 July 2021 as the due date for the return of answers to questions on notice.
1.12
The transcripts of these public hearings and answers and additional information are available on the Committee's website at:
1.13
In this report references to Hansard page numbers are to the proof transcripts. Page numbers may vary between the proof and official Hansard transcript.
Defence Portfolio, 1 June 2021
Naval Shipbuilding Expert Advisory Panel (NSEAP)
1.14
Topics examined during the hearing included:
Recent activity, including meetings, briefings and preparation of material for the Naval Shipbuilding Enterprise Governance Committee (p. 4)
Future Submarine Program (FSP), including whether advice was provided regarding the possibility of discontinuance, timeline and costs, systems functional review, development of integrated master schedule, knowledge of amendments to Strategic Partnering Agreement, and Australian industry content (pp. 5-10, 12-15)
Awareness of Capability Enhancement Review (p. 5)
Remuneration for panel members (pp. 9-10)
Advice on schedule for the life-of-type-extension (LOTE) for the Collins Class submarines (p. 11)
Australian industry capability (pp. 11-12)
Department of Defence
1.15
Topics examined during the hearing included:
Afghanistan, including withdrawal of troops, current security situation and Defence involvement in decision to close Australian Embassy in Kabul (pp. 17-22)
VIP operations, particularly in relation to the Prime Minister’s use of Special Purpose aircraft and the protocols for VIP visitor arrivals (pp. 22-25)
Use of Top Gun soundtrack for the Prime Minister's arrival for an event at RAAF Base Williamtown (pp. 25-26)
Dr Crompvoets’ work for Defence, including value, ethical standards and clearance processes, and her upcoming book (pp. 26-29)
Costs of moving armoured vehicles from Enoggera in Brisbane to training areas, particularly Shoalwater Bay Training Area (pp. 34-35)
Australian assistance in search for missing Indonesian submarine KRI Nanggala-402 and an Indonesian fishing vessel (pp. 35-36)
Naval Shipbuilding Plan Update, including decision on location of Collins class full cycle docking and LOTE (pp. 38-43)
Director-General of Naval Submarine Capability, including attendance at estimates, duties, engagement with TKMS, and study of Type 214 submarines (pp. 43-47, 49-52, 105)
Capability enhancement review (pp. 47-49)
Processes for engagement with media under Minister Dutton (pp. 52-55)
Engagement of Minister Dutton with TKMS or Saab Kockums (p. 55)
Navy review of the TKMS 214 submarine (pp. 55-56)
Criteria and appointment process for judge advocates (p. 61)
Exercise Talisman Sabre 2021 (p. 62)
Visa pathways for Afghan interpreters (pp. 67-68)
Core work scope 2 timeline for completion (pp. 56-59)
Engagement between French and Australian governments (pp. 57-58)
Future submarine numbers in the Indo-Pacific region (p. 63)
Workforce training and planning (pp. 63-66, 72)
Systems functional review delay (pp. 68-69)
Preliminary design review timeline (p. 69)
Number of foreign nationals working on the project (p. 69)
Australian industry minimum target for Combat system (p. 112)
Defence Innovation Hub grant for Whiskey project (pp. 69-72)
Future Frigate Program, including change in costs, schedule, system definition review, weight margin and local content requirement (pp. 73-79)
Defence budget, including underspend in the Defence capital budget, COVID-19 recovery programs, future funding, changes to deliverables in the Portfolio Budget Statement in terms of availability of days for a range of capabilities (pp. 79-86)
Ship maintenance facilities (p. 86)
Projects of concern/interest processes and framework (pp. 87-89, 103)
Defence investment in facilities in Northern Australia (pp. 89-90)
Safety incidents of Hawkei vehicles at Puckapunyal in November 2020 and remediation plan (pp. 90-91)
LAND400 Boxer Combat Reconnaissance Vehicles, including cost and number of vehicles, issues with the turret, schedule, underspend in the 2021-22 Budget (pp. 92-94)
Chief of Defence Force's (CDF) and the Chief of Army's awareness of the Fat Ladies Arms drinking establishment in Tarin Kowt (pp. 94-99)
Cancellation of Submarine escape and rescue system project with Phoenix (pp. 109-110, 113-115)
CDF’s comments at the Raisina Dialogue on the potential for conflict in the Taiwan Straits (p. 101)
Enhancements to the Australian Industrial Capability contractual framework and operation (p. 102)
Capability and Acquisition and Sustainment Group's Project and Sustainment Report frequency (p. 103)
Remediation of MRH-90 helicopters and the leasing of two Leonardo AW139 helicopters to fill capability gap (pp. 104-105, 119-120)
F-35A Joint Strike Fighter project, including numbers, schedule and final operating capability, delays due to COVID-19 impacts and sustainment costs (pp. 105-110)
Negotiations for compensation for the replacement of the Growler aircraft following its destruction by fire in the US in 2018 (p. 110)
Defence payment of legal fees for Naval Group Australia in relation to an appeal at the Administrative Appeals Tribunal (p. 111)
Security assurances for software (pp. 112-113)
Cape Class Patrol boats schedule, including delay due to defective aluminium (pp. 115-116)
Offshore Patrol Vessels, including the integration of the weapons and combat systems, expenditure and budget (pp. 116-117)
LAND 2072 Battlespace Communications Systems Project, including budget and delays (pp. 117-118)
Decision to change provider of custom made wetsuits from S2 to Neptune (pp. 118-119)
LAND 2097 acquisition of special forces helicopters (pp. 119-120)
Jindalee Operational Radar Network upgrade schedule (pp. 120-122)
Update on the acquisition of the Pacific Support Vessel (p. 122)
Establishment of the Sovereign Guided Weapons Enterprise (pp. 123-126)
Defence Portfolio, 2 June 2021
Department of Defence
1.16
Topics examined during the hearing included:
LAND 200 tranche 2 Battle Management System digitisation program pause due to the lack of software accreditation (pp. 5-23, 54-60)
Role of Commodore Timothy Brown on force structure requirements for undersea warfare, engagement with the Defence Capability Enhancement Review and TKMS, work on consideration of the Type 214 submarine, request to attend the hearing, and work on FSP contingency planning (pp. 23-31)
FSP, including contingency planning, future basing of the fleet, engagement with Saab Kockums, engagement with other countries, and Australian industry content provisions in the Strategic Partnering Agreement (pp. 27-32, 35-41)
Defence engagement on the lease of the Port of Newcastle (p. 32)
Advice to the Foreign Investment Review Board concerning the granting of a lease to Cockatoo Island Mining (pp. 32-33)
Defence expenditure on infrastructure at Yampi Sound (p. 33)
Howitzer artillery system project (pp. 33-35)
Security breaches in the Ministers’ offices across the Defence Portfolio, and termination of staff member from the office of former Defence Industry Minister, Senator the Hon Linda Reynolds CSC (pp. 41-44, 51-53)
LGBTIQ+ Defence personnel, including Minister's direction regarding future International Day Against Homophobia, Biphobia, Interphobia and Transphobia (IDAHOBIT) morning teas and withdrawal of the Australian Army pride pin (pp. 45-47)
Cessation of Australia’s defence cooperation with Myanmar (pp. 47-48)
Defence cooperation with the Philippines, Indonesia, Sri Lanka and Israel (pp. 48-49)
Progress on the sale of the Maribyrnong Defence Site (pp. 49-51)
Implementation of the Pathway to Change strategy and implementation of recommendations from the ANAO Report No. 38 2020-21 Defence’s Implementation of Cultural Reform (pp. 60-61, 70-72)
Dr Crompvoets’ work for Defence, including research on female veterans and mental health, and Defence's review of her forthcoming book (pp. 61-65, 67)
Support provided to those discharging from the Special Air Service Regiment following the Brereton report (p. 66)
Fat Ladies Arms drinking establishment in Tarin Kowt (pp. 68-70)
Decision to change provider of custom made wetsuits from S2 to Neptune wetsuits (pp. 72-73)
AW139 helicopter cost including lease versus purchase price (p. 73)
Joint Strike Fighter engine maintenance facility in Ipswich (p. 74)
Super Hornet ejection issue investigation (p. 73)
Loyal Wingman project cost and intellectual property (pp. 74-75)
Hunter class frigates, including weight, gear boxes and grey water tank capacity (pp. 75-76)
Modelling of total economic benefit for the capability life of the Boxer combat reconnaissance vehicle (p. 77)
New Defence Strategic Workforce Plan out to 2040 (pp. 77-79)
Progress on the exit of data from the Global Switch Data Centre (pp. 79-81)
Preparation of a review by Defence on the Port of Darwin (pp. 81-82)
Defence workforce, including labour hire arrangements, and proportion of women in Australian Defence Force (pp. 82-87)
Use of red carpet for arrival of Prime Minister at an event at RAAF Base Williamtown (pp. 87-88)
Australian Signals Directorate
1.17
Topics examined during the hearing included:
Ransomware attacks on various Australian businesses, including health and media companies, and offensive cyber operations (pp. 88-90)
Cyber attack on JBS meatworks (p. 91)
Auditing of Australian Electoral Commission software and systems (pp. 91-92)
Australian War Memorial (AWM)
1.18
Topics examined during the hearing included:
Redevelopment progress, including contingency planning, public consultation and requests for tender for early works (pp. 93-95, 96-97)
Possibility of changes or additions to display on conflict in Afghanistan (pp. 95, 97-98)
Suitability of Mr Kerry Stokes AC as chair of AWM Council given his support for Mr Ben Roberts-Smith (p. 96)
AWM Indigenous Liaison Officer (p. 96)
Role in recognising the physical and mental suffering of veterans and the impact on families (p. 98)
Department of Veterans’ Affairs (DVA)
1.19
Topics examined during the hearing included:
Psychiatric assistance dog program (pp. 99-101)
Austin Hospital psychiatric program (p. 101)
Royal Commission into Defence and Veteran Suicide, including budget, DVA taskforce, development of terms of reference and consultation period (pp. 101-102, 104-106, 114-117, 121)
Activities of interim National Commissioner for Defence and Veteran Suicide Prevention (pp. 102, 116)
DVA investigations into suspected veteran suicides (pp. 102-104)
Veteran Family Advocate remuneration and capacity (pp. 106-107)
Claims processing wait times (pp. 107-108)
DVA staffing, including proportion on labour hire contracts and arrangements for Open Arms (pp. 108-113)
Mishandling of personal documents (p. 118)
Homelessness among recently transitioned ADF members (pp. 119-120)
Progress on roll out of Wellbeing Centres and decision on location (pp. 120-121, 122-124)
Response to the 2019 Productivity Commission Report A Better Way to Support Veterans (pp. 121-122)
Foreign Affairs and Trade Portfolio, 3 June 2021
Department of Foreign Affairs and Trade (DFAT)
1.20
The Committee noted the imminent retirement of the Secretary of the Department of Foreign Affairs and Trade, Ms Frances Adamson AC, acknowledging her long and distinguished career as a diplomat and dedication in the leading the Department of Foreign Affairs and Trade since 2016.
1.21
Topics examined during the hearing included:
Repatriation of Australians stranded overseas due to COVID-19, particularly in relation to arrangements in India, including numbers, flights, minors, budget, staff in High Commission in New Delhi, contract with QANTAS, pre-flight testing regime and pause on flights (pp. 5-23, 30-42, 52-53, 71-72, 90-94)
Government response to Joint Standing Committee on Foreign Affairs, Defence and Trade report Criminality, corruption and impunity: Should Australia join the Global Magnitsky movement? (pp. 23-24, 51)
Myanmar, including consideration of sanctions, ASEAN special summit, engagement with Burmese diaspora, redirection of development assistance, departmental taskforce and engagement with National Unity Government (pp. 24-27, 45-49, 62-67)
China, including relations with Australia, suspension of the strategic economic dialogue, human rights violations and forced labour of the Uyghur people in Xinjiang, representations in relation to human rights violations in Tibet, independent human rights observers, potential boycott of the Beijing Winter Olympics 2022, and detention of Dr Yang Hengjun and Ms Cheng Lei (pp. 27-30, 88-89, 98-99, 102-103)
Australia’s Foreign Arrangements Scheme, including notifications, termination of agreements and engagement with stakeholders (pp. 43-45, 49-51, 72-75)
COVID-19 vaccination of DFAT staff (pp. 51-52)
Closure of Australian embassy in Kabul and processing of Australian visas for locally engaged staff (pp. 53-61)
Status of Hekmatullah's detention (p. 59)
Policy on recognising states, not governments, particularly in relation to Venezuela and Myanmar (pp. 61-62)
Australia’s attendance at the G7-plus meeting in United Kingdom in June, and position on the statement to agree to phase out government funding for fossil fuel projects (pp. 67-68, 86-88)
Criteria for Export Finance Australia to support resource related projects, including fossil fuels (p. 69)
Asian Development Bank fossil fuel exclusion policy (p. 70)
Israel-Palestine conflict, including representations by the Australian Government to Israel and the Human Rights Watch Report (pp. 70-71)
Aid to the Palestinian Territories (pp. 76-77)
TRIPS (Trade-Related Aspects of Intellectual Property Rights) waiver for the manufacturing of COVID-19 vaccines (pp. 77-79)
Official Development Assistance budget allocations, including Global Partnership for Education, medical supplies to India (pp. 79-80)
Prime Minister’s address at President Biden’s climate summit (pp. 80-86)
Extradition of Australian Mr Osama al-Hasani from Morocco to Saudi Arabia and consular assistance (p. 89)
Detention of Mr Sean Turnell in Myanmar and consular assistance (p. 90)
Budget, including COVID response package supporting Australians overseas measure, enhanced trade in strategic capability measure, forecast operating deficit, and staffing cap (pp. 94-98, 105-108)
Australia's membership of International grouping campaigning against the death penalty (p. 99)
Representations regarding human rights in Vietnam (p. 99)
Detention of Mr Robert Pether in Iraq (p. 99)
Representations regarding the treatment of ethnic and religious minorities in Iran, particularly Baha'is (p. 100)
Representations regarding persecution of Christian minorities across a range of countries (p. 100)
Monitoring and representations of developments in Papua (p. 101)
Diversion of Ryanair flight over Belarus (p. 101)
Australia-Indonesian maritime and continental shelf boundary (p. 101)
Suspension of mutual legal assistance arrangements between Australia and Hong Kong (pp. 103-104)
Mr Julian Assange, including discussions with US and consular assistance (pp. 104-105)
Departmental staffing (pp. 104-105)
Comments by Home Affairs Secretary Mr Michael Pezzullo in his Anzac Day message to staff (p. 108)
Australia’s one-China policy and engagement with Taiwan (p. 109)
Presence operations in the South China Sea (pp. 109-110)
Cyber engagement and International Cyber Strategy, including attribution policy (pp. 110-118)
Countering disinformation in the region (pp. 118-119)
Status of the Barr-Durham inquiry into the Mueller investigation and Australian assistance (pp. 119-121)
State of conflict in Tigray and Australian engagement (pp. 121-123)
Allegations of inhumane treatment of Armenian prisoners of war by Azerbaijani soldiers and Australian representations (pp. 123-124)
Australia's position on the recognition of the Armenian genocide (pp. 124-125)
Diplomatic relationship with The Vatican in relation to the findings of the Royal Commission into Institutional Responses to Child Sexual Abuse (pp. 125-126)
Invitations for the Domus Australia event for Cardinal Pell's first mass in Rome since 2017 (pp. 126-127)
Remuneration for a locally engaged staff position at the Embassy to the Holy See (pp. 127-129)
Prime Minister’s speech to the UN on action to combat plastic ocean pollution and delivery of outcomes (pp. 129-133)
Modern slavery and forced labour, including development of the new International Strategy on Human Trafficking and Modern Slavery (pp. 133-138)
Foreign Affairs and Trade Portfolio, 4 June 2021
Department of Foreign Affairs and Trade (non-trade programs)
1.22
Topics examined during the hearing included:
Potential CANZUK (Canada, Australia, New Zealand and United Kingdom) grouping (pp. 2-3)
Development and humanitarian funding for the Palestinian Territories (pp. 3-5)
Cryptocurrency funding of Hamas (pp. 5-6)
Conclusion of the Australian Middle East NGO Cooperation Agreement (AMENCA) 3 Program (p. 6)
Iran, including level of democratic standards, detention of foreign nationals, nuclear program monitoring and Joint Comprehensive Plan of Action (PCPOA) compliance, and Australian representations (pp. 6-9)
Australia's proscription of Hezbollah as a terrorist organisation (p. 9)
Prime Minister's statements on Taiwan and Australia's One China Policy (pp. 9-11)
Tender process for security contract for the Jakarta embassy (pp. 12-18)
Early termination of security contract with GardaWorld following closure of Australian embassy in Kabul (pp. 18-19)
China, including potential boycott of the Beijing Winter Olympics 2022, representations regarding arrest of people in Hong Kong rallying to commemorate the Tiananmen Square massacre, incursion into Malaysian airspace of 16 Chinese military transport planes, access to the Xinjiang Uyghur Autonomous Region, Uyghur forced labour, Huawei involvement in 5G, and report of United States prohibition/limitations on investing in China (pp. 19, 51-52, 67, 71-74)
Repatriation of Australians stranded in India due to COVID-19, including COVID-19 testing process for first flight (pp. 19-20)
Diplomatic support for Mr Julian Assange (pp. 20-21)
Conflict in Tigray, including the Ethiopian Human Rights Commission's inquiry, humanitarian assistance and Australia's commitment for famine relief, and Australian representations to the Ethiopian Government (pp. 22-23)
Repatriation of Australians in IDP (internally displaced people) camps in Syria (pp. 24-25)
LGBTIQ+ rights, including in Chechnya, UN refugee camps in Kenya, and Australian actions globally (pp. 25-26)
Resettlement of refugees from Papua New Guinea and Nauru in New Zealand and United States (pp. 26-27)
Modern slavery and forced labour, including development of the new International Strategy on Human Trafficking and Modern Slavery (pp. 27-28)
COVID-19 vaccinations for Australian consular staff (p. 28)
World Health Organisation, including reviews into COVID-19 and Australian funding (pp. 29-35)
Australian contributions to COVAX and other regional vaccination efforts (p. 29)
Official development assistance (ODA) budget allocations over the forward estimates (pp. 35-36)
COVID-19 situation in Papua New Guinea (PNG) and Australian assistance (pp. 36-40)
COVID-19 vaccine funding and roll-out in the Pacific and PNG (pp. 40-42, 49-51, 55-58)
Representations regarding activities in the Philippines of mining company OceanaGold (pp. 42-43)
Preparation of the Sri Lanka country report in 2019 (pp. 43-45)
Representations on human rights issues in India, particularly Kashmir (p. 45)
Representations on human rights issues in Cambodia (pp. 46-47)
Timor-Leste, including the COVID-19 situation and recent floods (pp. 47-48)
Funding for Global Partnership for Education (pp. 52-54)
Pacific Islands Forum, including withdrawal of four Micronesian countries (pp. 59-60)
Consideration of an Australian as possible candidate for the role of the UN Secretary-General's Special Envoy on Myanmar during 2018 (pp. 60-61)
Update on approved projects under the Australian Infrastructure Financing Facility for the Pacific (pp. 61-66)
Kiribati infrastructure funding (p. 67)
Pacific Labour Scheme and Seasonal Worker Program (pp. 68-70)
Australian engagement in relation to the Generation Equality Forum (pp. 70-71)
DFAT (Trade Programs)
1.23
Topics examined during the hearing included:
Comprehensive and Progressive Agreement for Trans-Pacific Partnership, including talks with Chinese officials (p. 77)
Report of United States prohibition/limitations on investing in China (pp. 77-78)
Update on progress of negotiations for the Australia-United Kingdom Free Trade Agreement (pp. 78-79, 85-86)
Trade with China, including decline in exports, diversification in some markets and impact on jobs (pp. 79-82)
Progress on the Regional Comprehensive Economic Partnership negotiations (p. 82)
Progress on the Australia-European Union Free Trade Agreement negotiations, including regulatory creep and geographical indications for food and spirits (pp. 82-85)
Climate change and commitments to emissions reduction, including UN Framework Convention on Climate Change negotiations, 26th UN Climate Change Conference of the Parties (COP26) (pp. 87-88)
Foreign export credit agencies investing in fossil fuels/resources in Australia (p. 89)
Prime Minister’s trip to the upcoming G7, including discussions around carbon tariffs (pp. 89-91)
European Union’s carbon border adjustment mechanism (p. 91)
DFAT’s feasibility study on strengthening trade and investment with Israel (p. 91)
TRIPS waiver in relation COVID-19 vaccines production (pp. 92-94)
Trademarking of a botanical name, particularly in relation to Manuka honey (pp. 95-96)
Export Finance Australia
1.24
Topics examined during the hearing included:
Fossil fuel/resource projects that have been financed and criteria used (pp. 75-76)
Activities of foreign export credit agencies (pp. 76-77)
Australian Trade and Investment Commission
1.25
Topics examined during the hearing included:
Measures to address skill and labour shortages in the visitor economy (pp. 97-99)
COVID-19 Consumer Travel Support Program (pp. 99-102)
Business Events Grants Program (pp. 102-103)
Tourism and Aviation Network Support (TANS) Program, including the methodology and datasets used for the selection of destinations (pp. 103-104)
Impact of COVID-19 lockdowns on tourism (p. 108)
Reforms to the Export Market Development Grant Program (p. 108)
Tourism Australia
1.26
Topics examined during the hearing included:
CHE Proximity contract to provide the retail campaign to support the TANS program (pp. 109-110)
BDA Marketing Planning contract published on AusTender on 6 April 2021 (p. 110)
'Keeping Australia Front of Mind' campaign (pp. 110-111)
Current domestic tourism campaigns (p. 111)
Percentage of Australia's total tourist numbers from domestic sources (p. 112)
Senator the Hon Eric Abetz
Chair