French authorities will investigate the leak of thousands of pages of sensitive submarine documents by the French shipbuilder selected to help design and build Australia's next fleet of 12 boats.
The Australian reported on Wednesday that the more than 22,000 leaked pages of documents detail combat capability of six Indian Scorpene-class submarines designed by French shipbuilder DCNS.
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Government plays down submarine leaks
DCNS is the same French company making Australia's next fleet of submarines, but a massive leak of its documents relate to an entirely different class of vessel, says Malcolm Turnbull.
The data was reportedly written in France for the Indian project in 2011 and is suspected of being removed by a former French Navy officer who was a DCNS subcontractor. It was reportedly taken to a south-east Asian company and then to an Australian firm.
"As a serious matter pertaining to the Indian Scorpene program, French national authorities for Defence security will formally investigate and determine the exact nature of the leaked documents," a spokesperson for DCNS said in a statement.
"The matters in connection to India have no bearing on the Australian submarine program, which operates under the Australian Government's arrangements for the protection of sensitive data."
The website Defence News further quoted company officials in Paris stating: "This investigation will determine the exact nature of the leaked documents, the potential damages to DCNS customers as well as the responsibilities for this leakage."
Indian Defence Minister Manohar Parrikar told reporters he understand it was "a case of hacking", according to Reuters.
Prime Minister Malcolm Turnbull said while any classified leak was concerning, Australia's new submarines were a different model and not included in the outdated information.
But South Australian independent senator Nick Xenophon will push for a Senate inquiry into the leak.
He said the leak was a serious development which warranted investigation "at the highest levels".
French to build Australia's new submarines
Australia's new 12-strong submarines fleet will be built in South Australia, with France's DCNS winning the $50 billion contract. Courtesy ABC News 24.
He called for explanations about implications of the leak from the Turnbull government, the Defence Department and DCNS.
"This is really quite disastrous to have thousands of pages of your combat system leaked in this way. I am very concerned about this," Senator Xenophon said.
In April, DCNS beat bids from Germany and Japan to design 12 new submarines for Australia.
Defence Industry Minister Christopher Pyne said he had received advice from Defence that the Indian leak "has no bearing" on the Australian government's project.
"The Future Submarine program operates under stringent security requirements that govern the manner in which all information and technical data is managed now and into the future," he said in a statement.
"The same requirements apply to the protection of all sensitive information and technical data for the Collins class submarines, and have operated successfully for decades."
Labor defence spokesman Richard Marles called on the government to give an assurance that "in using DCNS there is absolute confidence . . . Australia's national security . . . is in safe hands".
Mr Marles added that news of the leak would be "deeply concerning to our allies" - a reference to the fact that the United States will provide the ultra-secret combat system for the new boats.
And that is that in using DCNS that there is absolute confidence. The information, Australia's national security. There isn't any more privileged information than that around submarines. That that is in safe hands.
The motivation for any leak to damage DCNS is cloudy. While DCNS is yet to sign a contract for the submarine deal, the firm's former rivals, Germany's TKMS and Japan's Mitsubishi Heavy Industries and Kawasaki Heavy Industries, are out of the race.
Defence Department Secretary Dennis Richardson, when asked during a parliamentary hearing recently whether the Germans and Japanese were still "sitting on the backburner in case the negotiations [with the French] do not work out", Mr Richardson replied: "They are out of it."
But DCNS is bidding for other projects around the world.
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