In November 2014, Johnston came under fire for comments regarding the government owned defence building company, the Australian Submarine Corporation. In comments to the senate he stated that ASC was delivering no submarines for one billion dollars and that they were over $350.00000 over budget on air three airware destroyer builds and that it was probably more than six hundred million but the bad data could not grant him an answer and then he said "You wonder why I'm worried about ASC and what they're delivering to the Australian taxpayer, you wonder why I wouldn't trust them to build a canoe?". The South Australian Liberal Party demanded an apology for the senator's remarks and the federal Labor opposition called for the senator's resignation from the Defence portfolio. Johnston indicated he regretted his comments the next day, calling it a "rhetorical flourish". Opposition Senate Leader Penny Wong moved a motion to censure Johnston for his remarks on the ASC, as well as his handling of the ADF staff pay cut. The motion passed 37 to 31 votes. Much of the anti-Liberal swing at the 2014 Fisher state by-election in South Australia, where Labor won the traditionally Liberal seat by just five votes from a 7.27 percent two-party swing to go from minority to majority government, was attributed to Johnston's "I wouldn't trust them to build a canoe" remark toward South Australia's Australian Submarine Corporation, occurring just several days out from the by-election. The unpopularity of then Prime Minister Tony Abbott was cited as the other main factor.
Leaked dinner receipts
In December 2014, less than a month after his comments on the ASC were made, News Corp leaked images of receipts totalling thousands of dollars allegedly used by Senator Johnston's government issued credit card to pay for the dinners of a number of companies vying for a contract to build the Collins-class submarine replacement project. Items on the receipts came to a total of $6,384 and sometimes cost up to $300 a head as well as including $200 bottles of wine. After the leak was released two staffers from the senators office resigned but neither were accused of being responsible for the leak. A spokesperson for Senator Johnston responded by saying "All hospitality hosted by the Defence Minister and extended to foreign dignitaries or industry heads, including at the time of the Albany Commemoration, has been within guidelines and is consistent with previous defence ministers' practice" and that the senator's office was investigating the leaks and would not comment any further.
