Senate Foreign Affairs, Defence and Trade Legislation Committee [Part 2], , 1:00:11 to 1:05:22
The committee examines the $8 billion budget allocation for priority works and housing at HMAS Stirling.
Topics: Infrastructure, Government spending
Speakers: Senator Fatima Payman, Senator David Shoebridge, Melena Davis, Unknown Speaker, Alexandra Kelton, Interjection
there there was an $8 billion budget associated with the upgrades that HMAS Stirling announced in 2023. Um is that still the budget?
>> Correct, that is still the budget.
>> All right, and that was as I understood it, intended to be expended um up to the up to 2027 in order to have SRF um operational. Um is that still the intent or did I mis-
>> No. No, so there was a series of what's called priority works >> Mhm. >> that needed to be conducted in order to satisfy the criteria that the US and UK had given us in order to be what we call Surf West ready. The $8 expands upon the priority works and gets us to what we we've already spoken about being sovereign ready. So, that is additional facilities that will allow us to be in a position to take ownership of US Virginia class submarines, but I have my uh chief operating officer and chief financial officer here that can tell you the exact amount of money that's been spent.
>> Yes, um I'd appreciate that.
>> Uh good evening, Senator. Melena Davis, chief operating officer. So, the priority works has a budget of approved budget of 2.5 billion dollars. And of that, uh accumulated estimated spending charge to 30th of June was about uh 805 million dollars.
>> To to June, but
>> accumulated till the end of June.
>> Last financial year,
>> and the preceding years that started
>> I understand that. The cumulative spend up to the end of last financial year was 805. Do you have an estimate of what the budget is up to now?
>> Uh 708 for uh 26-27. That's the annual budget. So, the overall budget
>> It might >> get it. So, but at the end of by the end of this financial year, it'll be about 1.5 billion. Yes. Um and then um given that it was 2.5 billion dollars to get it ready for SRF West to commence, how do we explain the gap between the 1.5 billion that will be expended by the middle of financial next next year and the 2.5 billion dollars in the priority budget?
>> So, the capabilities that are required to support uh submarine rotational force West will be in place by uh quarter 4 2027. The remaining facilities that come online will will come over a period that precedes that date and handovers.
>> So, is it anticipated by quarter 4 2027 the 2.5 billion dollars of priority works will be expended?
>> No, it'll extend beyond that.
>> All right. So, um and when when will you consider submarine rotational force West to be in operation?
>> So, we uh aiming for uh quarter 4 2027 to be at or we're calling initial at the initial operating state.
>> And what does that involve, Admiral Mead, the initial operating state?
>> So, that involves that uh we uh are in a position to safely and securely uh support US rotating uh Virginia class submarines operating from HMAS Stirling. It will mean that we will have a trained workforce that will be able to conduct um short maintenance periods on board on board those submarines, just like what we are doing at the moment. Uh it will allow the defense regulator to be in place. It will allow an Australian supply chain to be able to provide the support um for the submarine. Uh obviously logistics support. Um housing for US personnel, and a range of other activities, uh which is going on at Stirling at the moment.
>> Is the $2.5 billion does it include the housing budget? Or is that separately through defense housing?
>> No, that that is correct. It includes the housing for the initial tranche of people.
>> How much of the $2.5 billion is for housing?
>> Uh sorry. Uh the housing is separate to the 2.5. That's only work on HMAS Stirling. DHA is uh provided the capital for
>> All right. So, that's as I understood.
>> yes.
>> How defense housing, yep. Okay. Um can I ask then about um HMAS Henderson? Um how much has been spent out of the ASA budget on HMAS Henderson, if any?
>> Nothing.
>> No, that's that's
>> defense budget.
>> That's entirely out of defense? >> That's my understanding.
>> And just clarification, it's not a HMAS, it's not a commissioned military establishment.
>> The Henderson sustainment >> facility, or of it's called. Yeah, yeah.