The global head of French defence giant Naval Group says he is having "productive" talks with the Morrison government after being confronted about the company's commitments to Australian industry in the $90 billion future submarine program.
Key points:
Pierre Eric Pommellet has flown across the world, spending two weeks in mandatory quarantine in Adelaide, to conduct face-to-face negotiations with ministers and officials in Canberra.
Government frustration with Naval Group is growing over the company's refusal to formalise a pledge last year to spend 60 per cent of the massive contract value on local suppliers.
After emerging from separate meetings with Defence Industry Minister Melissa Price and Assistant Defence Minister Andrew Hastie, the visiting CEO was remaining optimistic about progress on a deal.
"I'm very happy to be in Australia, I've had very productive meetings with all the Australian ministers," Mr Pommellet told the ABC.
The visiting French executive declined to say whether he thought Naval Group was close to finalising an agreement with the Commonwealth.
"As I said, we had very productive engagement," Mr Pommellet responded before departing Parliament House.
Defence Minister Linda Reynolds had to cancel her first face-to-face meeting with the Naval Group Global CEO after being admitted to hospital on Wednesday morning.
Instead, Minister for Defence Industry Melissa Price instead issued a terse statement following talks with the French visitor.
"I reinforced to Mr Pommellet that a clear commitment to Australian capability within the Strategic Partnering Agreement with Naval Group is an absolute necessity for Australia.
"We must achieve at least a 60 per cent spend of the total contract value with Australian businesses."
Minister Price also warned that the Morrison government would hold Naval Group to account on the commitment, "as the Australian public would expect".
"Drawing on my extensive legal experience as a construction lawyer, I reminded Mr Pommellet that the finer details of a contract matter," she said.
Australia's Chief of Navy Vice Admiral Mike Noonan also spoke to the visiting French businessman on Wednesday night about the massive project to build up to 12 conventionally powered submarines.
Finance Minister Simon Birmingham is scheduled to hold talks with Mr Pommellet on Thursday.