Back in September, I commended the Abbott Government for considering importing Australia’s next generation of submarines, rather than building them locally, and in the process potentially saving Australian taxpayers many billions of dollars in the process.
At the time, Prime Minister Abbott rightfully explained:
“The most important thing is to get the best and most capable submarines at a reasonable price for the Australian taxpayer’…
“We should make decisions here based on defence requirements, not on the basis of industry policy . . .’’.
My support on this issue has turned to mistrust today in light of Treasurer Hockey revealing this morning that the submarines contract would not be put out to a competitive tender. From The Guardian:
Hockey was also asked about Labor’s tactical ambush in the Senate last night about submarines… Would the government allow a competitive tender for the looming submarines acquisition?
No, said Hockey. “We don’t have time”.
Let’s be clear. The submarines contract is likely to be worth at least $20 billion. The submarines are also unlikely to be delivered for another decade. So how can Hockey credibly claim that “we don’t have time” to put the contract out to a competitive tender?
A competitive tender is the only way to ensure that Australia gets the best submarines at the best price. In refusing to undergo due process, the Coalition has thrown any Budget credibility that it had left out the window.
