12.08am EDT00:08
A defence department official says the government doesn’t know the precise cost of terminating the submarine contract with France’s Naval Group.
Australia had contracts with Naval Group and with another defence contractor Lockheed Martin as part of the now abandoned attack class submarine project (which is being replaced with nuclear-propelled submarines to be built in partnership with the US and the UK).
Greg Sammut, general manager of submarines at the defence department, tells a Senate committee there is “no break fee, but there will be costs associated with termination”.
The terms are being negotiated, he says, adding: “That’s different to what we will have to do under termination for convenience to settle costs for the decision to cancel the program.”
Sammut acknowledges he is making a “fine” distinction, but notes there has been a lot of reporting about “break fees”. He says:
Break payment fees were not payable until a later point of the program.
So how does he characterise the current negotiations? He says Australia is currently working to “transition out of the contracts” and “settle the costs” as per contracts.
The Labor senator Kimberley Kitching asks whether he can estimate the costs that are likely to be incurred. Sammut replies:
No I can’t give you an estimate at this stage.
Sammut says the cost of ending the contract with Lockheed Martin is likely to be known by early 2022, and the costs for France’s Naval Group cancellation are likely to be known by mid-2022.
He is asked about a 2019 ABC report that said a 250m euro (A$391m) payment would apply if the French delivered a detailed submarine design and Australia then chose to go no further. Sammut won’t confirm the figure outlined in the contract, but adds:
We have not reached a point in the contract where a break payment fee would apply.
Updated
at 12.16am EDT
11.48pm EDT23:48
The resumption of international travel will be for Australian residents, permanent citizens and their immediate family first, followed by skilled migrants, students and tourists.
Morrison:
We are not opening up to everyone coming back to Australia at the moment. I want to be clear about that. We will take this forward in a staged way as we have done in all these things.
We are only extending this to Australian residents, citizens and their immediate families. It is not extending broader than that, we will have a much greater volume, it is constrained to the volume of Australian citizens and residents returning.
Updated
at 12.06am EDT
11.40pm EDT23:40
PM to attend Glasgow summit
Morrison has confirmed he will be attending the 2021 United Nations Climate Change Conference in Glasgow.
It is an important event. The government will be finalising its position to take to the summit. We’re working through those issues with colleagues and I look forward to those discussions over the next couple of weeks.
The plan that I am taking forward together with my colleagues is about ensuring that our regions are strong, that our regions’ jobs are not only protected but have opportunities for the future. It is not just about hitting net zero. That is an important environmental goal but what is important is that Australia’s economy goes from strength to strength.
Updated
at 12.22am EDT
