Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

I am pleased to speak on this report of the House of Representatives inquiry into the use of intelligent communications technology in the delivery of infrastructure. One of the great things about living in the 21st century is that technology is always marching forward. When it comes to infrastructure, we must never lose sight of what technology offers. Not so long ago, if you wanted to drive across the Sydney Harbour Bridge you had to stop and pay the toll. New technology has removed this need. It is all done by computers. Of course, there is also a differential toll, which is one way of having an impact on urban congestion—if you go outside of peak hours, you pay less.

In the same way, recent years have seen the development of smart infrastructure that allows for more efficient use of our road system and our train lines. Use of cameras and smart signalling devices allows us to monitor traffic flows and, for example, change the direction of travel in individual lanes according to the time of day and the flow of traffic. We can change the speed limit. This is critical in terms of managing traffic flows and easing traffic congestion. That is why the former Labor government created the Managed Motorways Program in 2011. Some of the projects under Managed Motorways had a cost-benefit analysis of greater than 10:1. It is a pity that the current government cut it in 2014 in places like the Monash Freeway and then 18 months later announced its reinstitution as a new idea and a new initiative—quite extraordinary!

Labor is supportive of the report's general recommendations, which encourage the department to support greater use of smart infrastructure. It is important, because smart infrastructure not only allows us to build new infrastructure that is in line with world's best practice but also provides us with the option of not building new infrastructure if we can use smart infrastructure technology to improve the efficiency of an existing road or train line. That is absolutely critical in a nation like Australia, with its vast distances across our wonderful continent, that continues to suffer from an infrastructure deficit. Because public funding is scarce, we need to wring the full value out of every dollar. That is the best way we can lift productivity. We did that in government, and we are promoting this from opposition.

The report highlights what we have been observing for many years. As the committee chair notes:

The more evidence that was received about the role of smart ICT in infrastructure, the more the committee recognised the possibilities inherent in new technologies and systems.

And the tabling of this report could not be more timely, because just last Thursday evening I addressed the Sydney Institute, and there I announced that as part of adding to Labor's comprehensive plan for cities we would ask Infrastructure Australia to, when it considered proposals for funding, not just look at value for money but look at whether smart infrastructure had been included in the proposal, as well as the sustainability features of any proposal being put forward. I want to give a couple of examples of why this is necessary. I have mentioned the Managed Motorways program before. It was created in 2011. As an example, investment of just the funding on the Monash Freeway in Melbourne would return $10.50 in public benefit for every dollar invested. The Managed Motorways program upgrade of Melbourne's Westgate Freeway, which commenced in 2012, delivered $14 of benefit for every dollar invested. And of course the former, Labor, government also invested in the creation of the University of Wollongong's $62 million SMART Infrastructure Facility that I opened late in 2011. It is unfortunate that the government marginalised Infrastructure Australia and cut the Managed Motorways program, because it was one of the very strong elements of the Infrastructure Australia priority list.

But it is not just roads. The Australian Rail Track Corporation is working on its Advanced Train Management System to provide significantly upgraded capabilities to the rail industry through smarter signalling. That replaces trackside signalling with in-locomotive displays to drivers. It provides precise location of trains, both front and rear. It provides new digital network control centres, each capable of controlling all traffic on the ARTC national network. It provides a backup capability in the event of failure at one control centre so that the whole system does not break down. It provides enforcement of authorities on each locomotive if a train is at risk of exceeding its authority. And it provides switch settings and automatic route clearances. ATMS will improve rail network capacity, operational flexibility, train service availability, transit times, rail safety and system reliability. Labor invested in this program to make sure it delivered.

But it is also in the area of water, as I spoke about at the Sydney Institute, where I gave examples such as Yarra Valley Water, which services 1.7 million people and 50,000 businesses throughout Melbourne. It has partnered with IBM to use data analytics, maximising their asset performance while improving customer service. Yarra Valley Water has also implemented new smart technology called TaKaDu Software. This software identifies bursts, leaks and meter failures and also provides geolocations for these events. It monitors and analyses the state of and changes in the water and sewerage system in real time, using a combination of tuned algorithms, historical analysis and live system data, to identify deviations from predicted system behaviour. By using this software, Yarra Valley Water saved $930,000 and 1.05 billion litres of water in the last financial year. Queensland Urban Utilities also uses this technology. The software not only reduces costs but also minimises the disruption experienced by the community. When it comes to energy, the application of smart meters, which can make an enormous difference to energy usage by making sure that appliances are turned on and operate at times of lower demand, therefore lowering the energy that is required during peak times, can take real pressure off the system and can make a big difference.

As I said at the start of my contribution, the role of technology in the 21st century provides such enormous opportunities to improve existing national infrastructure and ensure that new projects are state-of-the-art. We should make sure that smart infrastructure is included in any new proposal, because it is cheaper than going back and retrofitting that technology after the event. This applies in road and rail infrastructure but also in water, energy and other infrastructure needs. I congratulate the committee on having the initiative to undertake this inquiry—but it does require the government to act. It requires the government to support the Managed Motorways program, from which it cut funding in 2014. It requires smart infrastructure to be seen as an essential component of our economic productivity and for all infrastructure to be as efficient as it should be, which is in the interests of corporations, but, at the end of the day, this is about the consumers. This is about the national economic interest. I commend the report to the House.

Jane Prentice (Ryan, Liberal Party) Share this | Link to this | Hansard source

I rise to endorse the comments of the Chair of the Standing Committee on Infrastructure, Transport and Cities, the member for Bennelong. As the chair of the previous committee, which initiated this inquiry, I rise to speak in support of the report. Indeed, I note that, when the committee was restructured last year, some members, including me, were concerned about the future of this inquiry. I wish to thank the committee chairman for adopting and completing the inquiry and for allowing me to remain involved until my recent change of role.

The inquiry into the role of smart ICT in the design and planning of infrastructure was in fact precipitated by an earlier inquiry of the committee into planning, procurement and funding for Australia's future infrastructure. While the decision to adopt this inquiry was initially met with resistance by some, it was greatly assisted by the strong advocacy and support given by the member for Forrest and the member for Hinkler. I take this opportunity to record my appreciation for their determination. Although the inquiry had originally set out with the limited scope of examining new technologies in the development of infrastructure, the unprecedented interest that it received from within industry and government resulted in it accepting a wide range of submissions and examples of smart technology. At the time of drafting this report, the inquiry had received 49 submissions and the committee had conducted eight public hearings.

The inquiry into the role of smart ICT set out to inquire and report upon the role of smart ICT in the design and planning of infrastructure. In particular, the inquiry focused on the identification of innovative technologies for the mapping, modelling, design and operation of infrastructure; the productivity benefits of smart ICT; the harmonisation of data formats; nationally consistent arrangements for data access and storage; the identification of international best practice in the use of smart ICT; the use of smart ICT in disaster planning and recovery; and, finally, the consideration of ways in which governments can promote the use of smart ICT to boost economic growth and productivity.

It is that final point I wish to emphasise: economic growth and productivity. Every year, literally hundreds of papers are tabled in this chamber, with most ranging from the mundane to the inconsequential. This report is not one of those. In fact, I would venture to say that this report will be one of the most important to be tabled in the life of the 44th Parliament. This report is, after all, about the future of Australia, the future of Australia's infrastructure, the future of Australia's productivity and the future of Australia's economy. The report is a road map for the future of infrastructure delivery and utilisation in Australia and, through its 10 recommendations, sets out a detailed and evidence based approach to the transformation of infrastructure design and planning in Australia through the use of smart ICT.

The emergence of smart ICT in the delivery of infrastructure is one of the most tangible representations of Australia's burgeoning ideas boom, and the gains that it will bring to Australia's productivity will be, without exaggeration, immense. Consider for a moment some of the evidence submitted by witnesses to the inquiry with respect to the productivity gains brought about by the use of smart ICT in infrastructure. Urban Circus, which recently ran a workshop with Main Roads in Western Australia, spoke about the significant savings in cost and time made through the use of building information modelling, known as BIM, and geospatial information and how the optioneering phases for particular Main Roads projects were taking up to a year because each time an alternative route was considered there was an additional cost of $100,000 and a one-month delay while new surveys were conducted. Through the use of BIM and geospatial information, all alternative routes were able to be considered in one meeting, saving the department literally hundreds of thousands of dollars in survey costs and bringing projects forward by months.

Aurecon also spoke about how BIM reduces lead times for major capital infrastructure projects. BCE Surveying spoke about the integration of BIM with mobile laser scanning, or MLS, and how, through the use of MLS, the time taken to survey a one-square-kilometre site is reduced from 16 hours to just two. In addition to the financial savings, the use of MLS surveying reduces disruption to road users, and environmentally sensitive areas are left undisturbed. Geoscience Australia noted UK savings of 840 million pounds in the 2013-14 year just from the use of BIM technology in the delivery of infrastructure. The Queensland University of Technology, AECOM, the Spatial Industries Business Association and Geoscience Australia all estimated typical cost savings of between 15 to 20 per cent of total project costs through the use of BIM. Imagine what it would mean for Australia, for our cities and for our regions if the government were able to extend the performance of its infrastructure spending by 20 per cent. The economic impact would be enormous and the possibilities are endless.

These are just some of the examples of the transformative effect that smart ICT will have on the delivery of infrastructure in Australia and, indeed, on the Australian economy as a whole. But the smart ICT integration will only happen through leadership, and without leadership in this space the productivity gains being experienced in other economies around the world will not be achieved here in Australia. What this inquiry and, indeed, the report set out to do was map the use of smart ICT in the delivery of infrastructure at the present time and set out a blueprint for the further expansion of smart ICT through political leadership.

The report makes 10 recommendations to the government, and I will touch briefly on some important points. First and foremost, the committee has recommended that the Australian government lead the formation of a smart infrastructure task force led by Infrastructure Australia and modelled on the very successful UK BIM Task Group. The task force would be charged with responsibility for coordinating and implementing smart ICT in the design, planning and development of infrastructure and the maintenance and optimisation of existing infrastructure. The task force would also be responsible for developing a national strategy to accelerate the adoption of smart ICT and engage Australia with international experience and best practice.

The task force would be responsible for the development of national protocols for the collection, management and release of infrastructure related data, including the sale of data. The committee has nominated the National Archives of Australia as the most appropriate body to oversee the development of a whole-of-government strategy for the collection, management, storage and security of data. The National Archives already leads the world in digitisation of records so already has the infrastructure in place to handle the storage of this material as well as existing security protocols for appropriate access and use.

The committee has also recommended that the Department of Infrastructure and Regional Development, the Department of Communications and the Arts, and Geoscience Australia continue to build smart ICT capacity in partnership with industry and that the Australian government, through COAG, work with state and territory governments to develop a national approach to the application of smart ICT. In the area of infrastructure procurement and prioritisation, the committee has recommended that the Australian government mandate the use of BIM for all infrastructure projects in receipt of Commonwealth funding where the total project cost exceeds $50 million.

The committee has also recommended that the Department of Infrastructure and Regional Development adopt the practice of examining whether the use of smart ICT in optimising the operation and maintenance of existing infrastructure assets can provide a more cost-effective solution than their physical replacement or upgrade. The committee received evidence throughout the inquiry that, in many cases, particularly with respect to transport infrastructure, optimisation of the existing asset through the use of smart ICT can provide the same desired effect, such as easing traffic congestion, at a fraction of the cost of the replacement or upgrade of the asset. The committee has also recommended that the Australian government invite Infrastructure Australia to consider the use of smart ICT in infrastructure as a means of identifying savings.

These recommendations provide the Australian government with a blueprint for the full implementation of smart ICT in the delivery of infrastructure. The 10 recommendations—if they are accepted by the Australian government—will deliver unprecedented gains in productivity and change the way we think about infrastructure. The economic imperative of embracing smart ICT in the design and planning of infrastructure cannot be overstated. Failure to act now will cost our economy billions of dollars in lost productivity and it will cost the government—indeed, the Australian taxpayer—billions of dollars in wasted infrastructure spending.

I strongly encourage the government to accept in full the committee's recommendations. I commend this report to the House.

Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Parliamentary Secretary for Foreign Affairs) Share this | Link to this | Hansard source

I am very pleased to follow Ms Prentice, who did a wonderful job chairing this very important inquiry. I wholeheartedly support the comments that have been made by the former chair of the committee. This was a very interesting inquiry to be involved in. It highlighted for all members of the committee the importance of the government taking a proactive approach when it comes to encouraging the use of smart ICT, particularly building information management systems, in the procurement of work associated with the government but also the benefits for the private sector. There is no doubt that a greater uptake of smart ICT and BIM in planning and in building and construction, both in the private sector through the construction of private facilities and in the public sector, particularly through the construction of infrastructure, will deliver great productivity benefits to our nation and grow our economy.

I was pleased to be involved as the deputy chair in this inquiry. The 10 recommendations contained in the report are precise and thorough and have bipartisan support to move forward. I support the comments of the former chair in saying that the government should give wholesome consideration to these recommendations and adopt them in full because they will make a difference to the way in which we plan and produce in particular infrastructure in this country that will deliver productivity benefits.

I note that, in recommendation No. 2, the committee stated that the Australian government proposed that the smart infrastructure task force take responsibility for the national coordination of the development of national protocols for the release of infrastructure related data in both the government and private sectors including creating mechanisms for the brokerage or sale of private data, and the development of standards for the collection and management of infrastructure related data including metadata standards and an objects library. The issue of information and what we do with it, who it is available to and how it is accessible came before the committee. The issues associated with security of that data information and how we deal with it is why the committee has recommended that a smart infrastructure task force be responsible for dealing with these issues and recommended to government how we proceed in the future. The committee has also recommended that the Australian government recognise the public safety communications systems as critical infrastructure and continue to support the development of these systems including funding research, promoting implementation and providing national coordination.

In terms of encouraging the uptake of smart ICT in our community the committee has recommended that the Australian government lead the formation of a suitably qualified and resourced smart ICT task force led by Infrastructure Australia—and that is an important link—on the model of the UK BIM Task Group, representing governments at all levels, academia and industry, to provide for the coordination and implementation of smart ICT in the design, planning and development of infrastructure and in the maintenance and optimisation of existing infrastructure. This task force would act as a coordinator or conduit for the development and implementation of policy nationally, including the development of industry and product standards and training and education. The task force would have responsibility for the development of a national strategy to accelerate the adoption of new technologies and innovations and engage Australia with international experience and global best practice.

Further, to encourage the uptake of smart ICT, the committee recommends that the government, as part of its infrastructure procurement processes, require BIM, building information management, systems on all major infrastructure projects exceeding $50 million in cost that receive Australian government funding, including partially funded federal government projects in partnership with state, territory and local governments. That is a proactive mechanisms to ensure that Australia is doing all it can to encourage greater uptake of smart ICT, particularly in the development of infrastructure. The evidence that came before the committee was that the process that has been put in place in the UK through their BIM Task Group has been successful in encouraging a greater uptake. Figures were presented on the productivity benefits that have flowed to the UK economy through the development of such mechanisms.

I might add that this is an issue that Labor have been conscious of for some years. I know that the former Minister for Transport and Infrastructure, the member for Grayndler, spoke in this debate prior to me and mentioned some of the reforms that Labor undertook whilst we were in government. I see these recommendations as building on that foundational work that was done by Labor. Labor have announced that any submission to Infrastructure Australia in respect of an infrastructure project should have a smart ICT element to it, particularly BIM and other reports that support the recommendations made in this committee through the uptake of smart ICT.

On the whole, this was a very interesting inquiry to be involved in and one that provides great opportunities for the Australian government to unleash productivity in our economy and to unleash a greater uptake of smart ICT to grow our economy. It has the wholehearted support of the Labor Party and I commend the report to the parliament.

Nola Marino (Forrest, Liberal Party) Share this | Link to this | Hansard source

I am very pleased to rise in support of this report into smart ICT. As other members have noted, it was a fascinating inquiry to be part of, and I am particularly proud of the recommendations that have been made. I want to acknowledge the work of the former chair of the committee who chaired this particular inquiry, the member for Ryan. She was a very effective chair. I acknowledge the work of the member for Hinkler as well and other members on that committee. It was a very bipartisan approach to the inquiry and I believe the body of work that has come out of that is a testament to not only the work that was done, the cooperation that we saw on that committee, but also the strength of those who gave evidence and provided submissions. The recommendations fit into the government's innovation agenda, and there is certainly a lot for the future of Australia contained in this report. We know that smart information and communications technology has the potential to transform the way we plan and manage infrastructure. This is part of the report.

BIM, Building Information Modelling, brings the construction industry and other industries into the digital age. There was a definition given by Autodesk. They said:

In BIM processes, these intelligent, 3D project models serve as the principal means for communication between project activities and collaboration between project teams, as well as the foundation for advanced analytics, simulation and visualization to optimize designs to achieve desired outcomes.

They went on to say:

This model can be shared between the design team (architects, surveyors, civil and structural engineers), then handed to the main contractor and subcontractors, and finally the owner/operator. Each team adds discipline-specific data to the project model.

So it reduces costs, it reduces information losses and it will provide more extensive lifestyle information for the owners of the particular piece of infrastructure.

I was very pleased with all of the recommendations and I encourage the government to adopt them. One of the things I found particularly useful in smart ICT is the development of disaster planning and emergency response systems. If this information were available to those who were managing, perhaps, the emergency of the floods in Brisbane they may have known the point at which every front door was going to flood. What an opportunity that would provide in managing such an emergency situation.

The committee recommended that the Australian government lead the formation of a smart infrastructure task force, led by Infrastructure Australia, on the model of the UK BIM Task Group. That would represent governments at all levels, academia and industry, providing coordination and implementation of smart ICT in the design, planning and development of infrastructure, as well as the maintenance and optimisation of existing infrastructure. The lifetime management of infrastructure is quite critical and a lot of cost is in that space. I see smart ICT as a critical component of managing those costs.

The committee also recommends that the Australian government require BIM to LOD500 on all major infrastructure projects, exceeding $50 million in cost, receiving government funding, including projects partly funded in partnership with state, territory or local governments. It focuses on tendering mechanisms that will basically facilitate this outcome on a project-by-project basis with a view to ultimately establishing BIM as a procurement standard. That is a very practical recommendation. We also recommended that the Australian government appoints and resources the National Archives to oversee the development of a whole-of-government strategy for the collection, management, storage and security—which is a critical issue—of data related to design, planning, operation and management of infrastructure. The recommendation to work with state and territory governments to develop a national approach to the application of smart ICT in the design and planning of infrastructure is another key recommendation.

I would like to reflect on the comments of one of the witnesses from my electorate, BCE Surveying, on their mobile laser scanning. I would recommend this one—it is a state-of-the-art, vehicle-mounted system combining high-resolution photography with highly-accurate laser and a very highly-accurate GPS system. This is innovative technology. It is a major advancement and has the potential to change significantly the way that people capture this type of information. From the beginning of the life cycle they can be used in anything, from smart cars to automated transport systems, automated vehicles and mine site automations. This is of some of the evidence we had from BCE.

Of course, this system is incredibly accurate. Through refinement and development, BCE has been able to achieve survey-grade accuracy with a mobile laser scanner—survey grade! That is an incredible piece of technology. Mr Purcell from BCE said that it is the solution waiting for some problems. You can just see it being used in the capture of as-built and as-constructed information, for inventory assessment, inspection audits, encroachment and dilapidation, and for analysis and asset management. There are many applications, and as a government we really need to facilitate the use of this type of technology.

We heard how BCE, using a mobile laser scanner, can survey a one-square kilometres site that previously would have taken 16 hours in just two hours. And there is the practical side of it on the roads: the data is captured with no impact or disruption to road users. Surveyors are no longer required to venture into traffic and there is no need for lane closures and other controls. And the data capture is rapid, which minimises effort and exposure in the field. This really is transformative technology that needs to be used by the government.

Our conclusion is that smart ICT not only has the potential to transform many aspects of our daily lives but it is actually in the process of doing that. The modelling with BIM can achieve savings and improve the efficiency of construction processes, and it reduces waste of time and materials and increases productivity. It can manage the facilities after construction, to be more efficient in maintenance and upkeep and in day-to-day use.

As I said, disaster planning is a very key part of this. Smarter ICT offers a range of opportunities for efficiencies and improvements in a broad range of sectors—not just for transport networks and infrastructure but also in urban and rural planning, agricultural productivity, water, energy, local government services and in construction. It has enormous potential.

In the time that is left to me, I really want to thank the witnesses and thank the other members of the committee, who brought open minds to this process. I thank the secretariat for their work and I commend all the recommendations that have been made by the committee to the government in full.

Debate adjourned.