Anthony Albanese’s government has retained Scott Morrison’s special adviser on naval shipbuilding at a cost of about $9,000 for each day he works.
Despite a budget edict to reduce reliance on external consultants, a letter obtained by Guardian Australia shows the new government has decided to keep paying former US navy secretary Donald Winter for advice.
Guardian Australia has learned that Winter has so far worked about a third of the 150 days specified in his three-year contract, which adds up to about $450,000 at current exchange rates.
The disclosures comes amid growing questions about Australia’s reliance on former US navy leaders as part of its naval shipbuilding program.
The head of the Department of the Prime Minister and Cabinet (PMC), Prof Glyn Davis, has written to Winter to say the government “wishes to continue drawing upon your independent and expert advice” until the contract expires at the end of 2023.
Winter was appointed by the George W Bush administration to be US navy secretary from 2006 and he left that role in 2009, two months into the Barack Obama administration.
He has long been involved in oversight of Australia’s submarine program, including scrutinising the original bidding process that led to the now-dumped French deal.
PMC will continue to seek Winter’s advice “on specific issues to draw to the prime minister’s attention”, Davis said in a letter obtained under freedom of information laws.
That would include “several key matters that government will consider in the next few months”, said the letter sent in September 2022.
Those details were blacked out in the version of the document that was released, on the basis they would reveal “deliberative processes”. A spokesperson for PMC did not confirm whether the key matters would include the government’s defence strategic review.
“Professor Winter continues to provide advice on shipbuilding enterprise matters consistent with the contract entered into by the previous government as has previously been publicly reported,” the spokesperson said.
“To date, Mr Winter has worked approximately one-third of the days specified in his contract.”
The agreement, which began in January 2021, stated Winter would be engaged for “up to 150 days over the term of the contract” and the daily fee was set out in US dollars.
Winter has previously disclosed in filings to the US Department of Justice that he is paid daily compensation of US$6,000 (A$9,060 at current exchange rates), plus expenses.
The contract did not appear to prevent early scrapping of the arrangement if the government wished.
The commonwealth had the right “at any time and without cause or reason” to terminate the agreement, according to a document tabled in Senate estimates last year.
In such cases, the federal government would be required to pay costs incurred to that point and also “any reasonable costs” that were directly caused by the termination.
The new government wants the naval shipbuilding expert advisory panel – a separate grouping chaired by retired US navy V-Adm William Hilarides – to be the main external source of naval shipbuilding enterprise advice.
But in the newly obtained letter, Davis told Winter: “From time to time, there may be specific activities or tasks that are better suited to your expertise than that of the naval shipbuilding expert advisory panel.
“We look forward to the opportunity to work closely with you.”
The latest round of Senate estimates hearings examined the role of former US navy leaders in advising the government, after the Washington Post published an investigative report in October.
In addition to Hilarides, the other members of the naval shipbuilding expert advisory panel include retired US navy R Adm Thomas Eccles and fellow Americans Howard Fireman and Gloria Valdez.
Murray Easton from the UK is a member while the deputy chair is Australian Ronald Finlay.
A defence spokesperson confirmed that there had been no change to the membership or terms of reference of this panel since the May election.
Its role included providing advice to cabinet on “the acquisition of nuclear powered submarines and other issues relevant to naval acquisition and sustainment”.
The spokesperson said another group – the submarine advisory committee – was focused on advice about Australia’s existing Collins class diesel-electric submarines.
A retired US navy admiral, Kirkland Donald, resigned from the submarine advisory committee in April 2022, seven months after the Aukus partnership with the US and the UK was announced.
The Washington Post reported that Donald had also served, since 2020, as chairman of the board of Huntington Ingalls Industries, which makes the Virginia-class submarines that the Australian government is now considering as one of the options under Aukus.
Donald told the paper he resigned from the committee to avoid any conflicts after “it became evident” his committee “would need to become involved in providing independent critical assessment” on acquiring nuclear-powered submarines.
Tony Dalton, a deputy secretary at the Australian Department of Defence, told Senate estimates the terms of reference had not changed after the Aukus announcement but Donald had resigned “to avoid even the perception of a conflict of interest”.
Dalton praised Donald for managing the matter “in an exemplary fashion”.
