Gary Gray (Brand, Australian Labor Party, Minister for the Public Service and Integrity) Share this | Hansard source

I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, the following proposed work be referred to the Parliamentary Standing Committee on Public Works for consideration and report: Construction of Projects Two and Three of the Christmas Island New Housing Program.

The Christmas Island New Housing Program was approved by the government in May 2010 to address a critical housing shortage on Christmas Island. It has a budget of $26.6 million. The housing program was approved as part of a $97.3 million package of measures to address pressures being placed on the critical infrastructure on Christmas Island due to increased migration activities on the island. The package was approved in two parts: $50 million in December 2009 and a further $43.7 million in May 2010.

The cost of rental accommodation on Christmas Island has increased considerably. The rental cost increase is estimated over recent times at being more than 50 per cent. These rental increases are directly impacting on ordinary workers on minimum wages, with rental costs becoming beyond the reach of locals on low to medium incomes. The Christmas Island New Housing Program aims to reduce the number of houses leased on the private rental market to accommodate Commonwealth employees. The impact of this program on the private rental market is expected to be an increase in supply of rental housing and lower rental costs, making accommodation more affordable to the local community.

Project One of this program was notified to the Public Works Committee and the construction of 16 dwellings and associated infrastructure commenced in September this year with a contract value of $11.4 million. Project Two, estimated at $10.9 million, is to design and construct 14 dwellings at Drumsite Village on the remaining portion of the site adjacent to the Project One site. Project Three, at an estimated $2.6 million, comprises the design and construction of a number of larger family homes containing four to five bedrooms in an established part of the Silver City residential area. Subject to parliamentary approval, construction will commence in May 2012 and is programmed for completion by June 2013. I commend the motion to the House.

Question agreed to.

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