Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

On behalf of the Parliamentary Standing Committee on Public Works, I present the committee's reports 4, 5 and 6 for 2016.

Reports made parliamentary papers in accordance with standing order 39(e).

by leave—Report 4 addresses four projects referred to the committee in February and March 2016.

The first project is the fit-out of new leased premises for the Australian Taxation Office in Gosford, NSW. The estimated cost of the project is $20.8 million.

The ATO will lease the new building in Gosford consisting of approximately 7,350 square metres and occupying around 27 per cent of the site of the former Gosford School of Arts and the Gosford primary school. The new building will be constructed by Doma, with the ATO responsible for the internal fit-out only.

At the public hearing the ATO reassured the committee that the tender process for the project had been rigorous. The ATO also outlined some of the benefits for the local community, including the creation of jobs during construction and fit-out works and employment opportunities for around 600 staff delivering ATO services when the offices are operational.

The committee notes that the ATO has a reputation of leadership and excellence in property portfolio management. It has a sound track record in delivering projects on time and within budget, as illustrated by fit-out works in Dandenong, Box Hill, Melbourne Docklands, Albury and Wollongong to name just a few.

The committee is satisfied that the project has merit in terms of need, scope and cost and recommends that it proceed.

Two of the proposed projects considered by the committee in report 4 are to be delivered by the Department of Defence.

The first Defence project is the upgrade to the Puckapunyal Military Area high voltage power supply.

The committee heard that the existing electrical distribution network at Puckapunyal has been developed in a piecemeal fashion over many years. In the event of a partial system failure, the network does not provide an alternate power supply route, and some parts of the network have now reached end of life. Also, looking forward to 2028, Defence has predicted that the demand for electrical power will exceed the available power. The estimated cost of the project is $32.7 million.

The second Defence project is the AIR5428 Phase 1 – Pilot Training System Facilities. The main objective of the project is to deliver fit-for-purpose facilities to support a new pilot training system. The works will be conducted at RAAF bases in East Sale, Pearce, Gin Gin, Edinburgh and Williamtown. The estimated cost of the project is $329.8 million.

The committee is satisfied that both these Defence projects have merit in terms of need, scope and cost and has recommended that both projects proceed.

The committee made two additional recommendations for the AIR5428 Phase 1 – Pilot Training System Facilities project, requiring the Department of Defence to:

The final project in report 4 addresses the Australian Nuclear Science and Technology Organisation waste management facilities' extension and upgrade.

Increasing domestic and international demand for the nuclear medicines produced at ANSTO, as well as the need to decommission end-of-life nuclear facilities, mean that ANSTO's available waste storage will be at capacity in early 2017. This is well before the new National Radioactive Waste Management Facility is expected to be completed in the year 2020.

The proposed works will provide additional temporary storage of both low- and intermediate-level solid waste at ANSTO's Lucas Heights campus. The estimated cost of the project is $22.3 million.

Submissions from the Australian Conservation Foundation and from the Medical Association for Prevention of War and the Public Health Association of Australia supported the allocation of funds for extended interim storage capacity at Lucas Heights pending site selection for the new national facility.

The committee is satisfied that the project has merit in terms of need, scope and cost and recommends that it proceed.

In addition, the committee requires that ANSTO provides it with an update on any regulatory requirements, as sought by the Australian Radiation Protection and Nuclear Safety Agency and the Australian Safeguards and Non-Proliferation Office, which may affect the scope or cost of the project.

I commend report 4 of 2016 to the House.

Report 5 of 2016 addresses the proposed fit-out of new leased premises for the Australian Federal Police at 45 Commercial Road, Newstead, Queensland. This project was referred to the committee in March 2016.

The lease for the AFP's Queensland state headquarters at 203 Wharf Street expires on 31 March 2017 and will not be renewed. The AFP intends to fit out newly leased premises at Commercial Road, Newstead at an estimated cost of $25 million. At the public hearing the committee queried the stages of the procurement process that led to the final selection of the Commercial Road premises. The committee was told that the process has started in May 2013. By May 2014 the AFP had shortlisted six of the 14 proposals received. This shortlist was further reduced to two options, and in September 2014 the Commercial Road site building was selected as the preferred site. In 2015 the project was halted to reassess risks associated with a heightened security environment. Additional mitigations to the works were required, including the construction of bollards, and treatments to the building perimeter and facade. These mitigations escalated the estimated costs of security treatments from $1.2 million up to $9.11 million, representing a 650% cost increase. The committee was told that building security considerations had not been given significant attention until the later stages of the procurement process. The committee considers that earlier consideration of security needs could have led to a different outcome in terms of selection of the preferred building, and may have reduced the security measures cost escalation.

As lease approval has been finalised, the committee understands continuing with the Commercial Road premises, albeit with enhanced security, is the most appropriate way forward. The committee is satisfied that the project has merit in terms of need, scope and cost, and recommends that the project proceed. The public hearing had a lot of focus on the security concerns of the committee; nevertheless, that is our recommendation. The committee requires that the AFP review and amend as necessary its procurement processes to ensure the early identification and assessment of security requirements. The review should include consideration of site selection processes to ensure that it is not unnecessarily constrained.

I commend Report 5 of 2016 to the House.

Mr Speaker, Report 6 of 2016 addresses the C17 Maintenance Facility, Aircraft Apron and Associated Infrastructure Project at RAAF Base Amberley, Queensland which was referred to the committee in March 2016. 36 Squadron is located at Amberley and is responsible for operating eight C17A aircraft. These heavy airlift aircraft assist with strategic air transport, military operations and humanitarian efforts—as we saw in Fiji—conducted both domestically and throughout our region.

The Department of Defence is seeking approval to supply new facilities at RAAF Base Amberley in order to support the C17A aircraft. The estimated cost of the project is $219.4 million. Defence advised that Amberley's existing heavy aircraft maintenance facilities, which are currently shared supporting both the C17A and KC30A refuelling aircraft, are insufficient. Acquisition of additional aircraft will place further pressure on existing facilities. New facilities, including a new maintenance hangar, aircraft apron, explosive ordnance and countermeasure facilities will improve efficiency. The committee is satisfied that the project has merit in terms of need, scope and cost and recommends that it proceed.

I commend Report 6 of 2016 to the House.

In closing, I thank first the secretariat for the great work that they do supporting public works committee. I also acknowledge the work of the chair, Senator Dean Smith, and the deputy chair, his WA colleague the member for Moore, Ian Goodenough, who does great work in this committee; I should particularly mention him, and also my Labor colleagues, Senator Alex Gallacher, Joanne Ryan, the member for Lalor, and Sharon Claydon, the member for Newcastle. They always turn up, and they always do their job, quietly looking over the work of government—and I am sure we will rest in peace if that is what is written on our political tombstones.

Tony Smith (Speaker) Share this | Link to this | Hansard source

I thank the member for Moreton. I can say to the House that I know the member for Moreton takes his committee role seriously. It was a pleasure recently to have the member for Moreton accompany me on a delegation to the New Zealand parliament.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

You did not throw me out once, Mr Speaker!

Tony Smith (Speaker) Share this | Link to this | Hansard source

I did not throw you off the delegation once, that is true.