David Johnston backtracks on 'canoe' remarks towards Australian Submarine Corporation

Updated

Defence Minister David Johnston has backtracked on his criticism of the Government's ship-building company, telling the Senate he did not intend to cause any offence.

During a heated debate in Question Time yesterday, Senator Johnston lashed out at the Adelaide-based Australian Submarine Corporation (ASC), saying he would not trust it to "build a canoe".

The comment prompted South Australia's Opposition to demand an apology from Senator Johnston.

Prime Minister Tony Abbott's office later issued a statement saying "the Australian Submarine Corporation plays a vital role supporting the Royal Australian Navy and our key naval capabilities".

Amid a growing backlash over his remarks – including from within his own party – Senator Johnston made a statement to the chamber this morning.

"Regrettably, in a rhetorical flourish, I did express my frustrations in the past performance of ASC," he said.

"In these comments I never intended to cause offence and I regret that offence may have been taken.

"And I, of course, was directing my remarks at a legacy of issues and not the workers in ASC, whom I consider to be world class."

Senator Johnston said he was frustrated with the company's handling of the troubled multi-billion dollar Air Warfare Destroyer (AWD) program but he said ultimately, the former Labor government was to blame.

"The frustrations of successive governments with the performance of both the Collins Class sustainment and the AWD program are well documented," he said.

"I am committed to leading the effort to fix our problems."

Minister's comments 'wrong', Coalition MP says

Several Coalition MPs have also criticised the minister's statement, with Assistant Infrastructure Minister Jamie Briggs describing them as "wrong".

South Australian Liberal senators, including Sean Edwards, also expressed their concerns.

"I said in light of what's become known as his 'rhetorical flourish' that we may need to re-group on the position to ensure that South Australia is represented properly in this debate and that nothing goes off the rails," he said.

Liberal senator Simon Birmingham said there was no excuse for the minister's remarks.

"We should be honest about the problems submarines and shipbuilding have faced at Osborne, but that's no excuse for denigration of the workforce or extensive capabilities South Australia has, which I am confident will enjoy more jobs from increased investment in the future," Senator Birmingham said.

Federal Education Minister and South Australian Liberal MP Christopher Pyne also tried to play down the issue on ABC Local Radio this morning.

"He has indicated that he regrets that statement he made and withdraws it and I think it's good that he has been man enough to admit when he's made a mistake," he said.

"And the Prime Minister made it perfectly clear last night, in fact, that the Government didn't share the view that he expressed in the heat of debate."

When asked whether he still had confidence in the Defence Minister though, Mr Pyne repeatedly side-stepped the question.

"He's a very competent minister, he's an important member of the Coalition team," he said.

"It's not for me to indicate my preferences for who should be in the Cabinet. That is a decision of the Prime Minister. It's certainly also not my role to criticise my fellow Cabinet members and I won't be doing that."

The Federal Opposition seized on the apparent internal divisions and called on Mr Abbott to sack the Defence Minister.

We should be honest about the problems submarines and shipbuilding have faced at Osborne, but that's no excuse for denigration of the workforce or extensive capabilities South Australia has, which I am confident will enjoy more jobs from increased investment in the future. South Australian Senator Simon Birmingham

"Well now, this is a test of leadership for the Prime Minister of Australia," Opposition frontbencher Tony Burke told Parliament.

"He either backs his Defence Minister or he backs his federal Liberal MPs.

"If he has no confidence in his Defence Minister, he should have the courage to get rid of his Defence Minster."

At least one Cabinet colleague is standing by Senator Johnston, with Foreign Minister Julie Bishop declaring he should "absolutely not" be sacked.

"David Johnston has given a statement to the Senate and it speaks for itself," she said.

Before the election the Government promised to build 12 new submarines in South Australia, but there is growing speculation it will instead opt for a Japanese design.

Senator Johnston told the Senate that no decision has been made.

"Decisions will be made as I have said time and again on the advice of our Service Chiefs," he said.

"Our goal is to deliver to our Navy a new class of submarine that is superior to Collins, before the planned withdrawal date of the Collins class.

"Given the sheer scale of submarine programs, it is only by working together as a team that we will reach this goal."

Labor's Senate leader Penny Wong has labelled the minister a disgrace.

"Does anyone believe after his performance that this minister will make a fair and unbiased decision when it comes to the future submarines project?" she asked.

"No-one in Australia believes that, no-one in this Senate believes that.

"Not even your South Australian colleagues behind you believe that, or in fact your Cabinet colleagues believe that."

SA Liberal Party leader Steven Marshall said the comments were unacceptable and that the workforce at ASC was highly capable and credentialed.

"Minister Johnston's comments regarding the ASC were nothing short of deplorable," he said.

Apology does not cut it: SA Minister

However, SA Defence Industries Minister Martin Hamilton-Smith said the Opposition leader had to go further than asking for an apology.

Mr Hamilton-Smith has spent the past few months arguing the case for the next fleet of Australian submarines to be built at the ASC's Osborne facilities near Port Adelaide.

"The State Liberal Party and Steven Marshall must make it perfectly clear that they will accept nothing less than the honouring of the promise made by their federal Liberal colleagues prior to the last election, that those 12 submarines will be built in Australia, based in Adelaide," he said.

He needs to stand up today and apologise to the people, the workers at the ASC and to the people of South Australia. SA Opposition leader Steven Marshall

Senator Johnston based his comments on problems the ASC had been experiencing with its contract to build three AWD, which were over budget by at least $350 million and two years behind schedule.

He had been increasingly indicating he favoured building the fleet in Japan for between $20 billion and $30 billion, claiming it would cost up to $80 billion if they were built in SA.

Independent senator for SA Nick Xenophon said Senator Johnston's comments were "bizarre, ridiculous, unfounded and stupid".

He said it was an indication the Government had already made a "handshake" agreement with Japan to build the submarines offshore.

Earlier this month, ASC general manager Stuart Wiley said it would cost between $18 billion and $24 billion to build 12 submarines in Adelaide – a figure backed up by German and Swedish shipbuilders who said they could build the submarines at Osborne for about $20 billion.

Topics: navy, defence-and-national-security, defence-industry, federal-government, defence-and-aerospace-industries, adelaide-5000, australia, sa

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