Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to 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: Fit-out of new leased premises for the Department of Social Services, Australian Capital Territory.

The Department of Social Services currently leases space in multiple buildings across Woden and Tuggeranong in the Australian Capital Territory. The term of lease at the DSS main building in Tuggeranong will expire on 5 December 2016, with no option available under that lease to extend the term. The department's current accommodation in Tuggeranong also has a range of deficiencies in terms of the occupational density and staff connectivity due to people being spread out over a series of 10 buildings.

The department is committed to maintaining a presence in the area as a high proportion of staff reside in the Tuggeranong Valley. The presence of a large department such as DSS in the area is also important to local small businesses. The department's proposed fit-out of the new leased premises will provide capacity for the co-location of approximately 70 per cent of its ACT based staff and opportunities for significant benefits in relation to functionality, operating efficiencies and reduced administrative overheads.

DSS has estimated that the total cost of the proposed fit-out will be $55.860 million plus GST, including builders' costs, consultant and client costs, furniture, fittings and equipment and workstations. The 2014-15 budget provided $26.797 million over the forward estimates towards the project, with the remainder of the fit-out costs to be met through a lease incentive.

This proposal will enable a reduction of more than $7 million in annual outlays already factored into the forward estimates on leased office space in the ACT from 2017 onwards. Subject to parliamentary approval, the proposed integrated fit-out works are scheduled to commence in January 2016 with practical completion scheduled for 1 October 2016.

I am sure the committee will undertake a rigorous inquiry into the project and I look forward to reading its report in due course. I commend the motion to the House.

Question agreed to.