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Wednesday, 1 March 2017 Senate Page 39<br />

Mr Gillis: Yes, I had read the newspapers about the power issues and outages in South Australia.<br />

Senator FARRELL: You then investigated the issue at Osborne, did you?<br />

Mr Gillis: No, we had already previously commissioned OMT—Odense Maritime Technology—to look at<br />

the shipyard infrastructure design, a part of which was the power requirements.<br />

Senator FARRELL: When was that commissioned?<br />

Mr Richardson: They did some work late last year and they were commissioned in early December to do<br />

this.<br />

Mr Gillis: But they had previously been working with us for up to six months doing a range of other different<br />

options. The specific tender or contract was in December to do this work. They are due to report back their<br />

preliminary findings on 13 March.<br />

Senator FARRELL: Is that 13 March this year?<br />

Mr Gillis: Yes.<br />

Senator FARRELL: So you commissioned this. What were they looking at? What was the nature of their<br />

commission?<br />

Mr Gillis: The task was to actually look at the existing infrastructure, which they had been doing in the<br />

previous six months at Osborne, then they were to look at what were the infrastructure requirements to achieve a<br />

continuous build of frigates in ASC South, as it is known, and what are the requirements for the facilities, what<br />

are the land requirements and how do we optimise shipbuilding in that location to enable continuous building at<br />

the lowest possible cost.<br />

Senator FARRELL: So this was quite a general investigation into Osborne's capacity?<br />

Mr Gillis: There was a specific requirement to actually redesign a shipyard and to work with local South<br />

Australian companies and naval architecture firms to actually build a new infrastructure for South Australia.<br />

Senator FARRELL: Was one of the issues that they were looking at supplementary power generation at<br />

Osborne?<br />

Mr Gillis: A part of their design was to look at all of the infrastructure, a part of which is the power<br />

requirements.<br />

Senator FARRELL: Was that specifically mentioned in the tender?<br />

Mr Gillis: I would have to take that on notice.<br />

Mr Richardson: Power requirements certainly were. I recall that.<br />

Senator FARRELL: In particular a supplementary power source?<br />

Mr Richardson: I do not know the answer to that.<br />

Mr Gillis: ASC already has an existing supplementary power requirement. They already have power at that<br />

site. This would be looking at what would be the future requirements.<br />

Senator FARRELL: That is correct, isn't it. They have a critical systems backup, don't they?<br />

Mr Gillis: Yes, and a part of that function would be to assess if that is going to be suitable for the size of<br />

infrastructure and the size of the work that we would be actually undertaking under the continuous build of<br />

frigates.<br />

Senator FARRELL: Just going back to what you said—that it already has a supplementary power source—<br />

has there been any suggestion that there have been problems with that supplementary power source?<br />

Mr Gillis: Not that I am aware of.<br />

Senator FARRELL: In a blackout period, has that swung in to do the job that it is meant to do?<br />

Mr Gillis: You would have to ask ASC. I am not aware of that level of detail.<br />

Senator FARRELL: But ASC have not mentioned to you that they have had any problem with their power<br />

source?<br />

Mr Gillis: That would be one of my ship's commodores who would have that direct relationship with them.<br />

Senator FARRELL: But nobody has mentioned to you that there has been a problem with power source at<br />

Osborne?<br />

Mr Gillis: Not directly to me, but that may have happened. I am not aware of it.<br />

Senator FARRELL: Could you make an inquiry?<br />

FOREIGN AFFAIRS, DEFENCE AND TRADE LEGISLATION COMMITTEE

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