Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to this | Hansard source

I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Australian Embassy Project, Washington, District of Columbia, United States of America.

Tony Zappia (Makin, Australian Labor Party, Shadow Parliamentary Secretary for Manufacturing) Share this | Link to this | Hansard source

In respect of the motion there is one particular project that Labor does not support, and that is the border protection—

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

I ask the member for Makin to resume his seat. For the benefit of members of the House, the minister has a long list of public works that he is moving through. The question before the House now is on the Australian Embassy project, Washington DC.

Question agreed to.

Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to this | Hansard source

I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Main Building Refresh Project, Geoscience Australia Building, Symonston, ACT.

Question agreed to.

I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Proposed fit-out of leased premises for the Administrative Appeals Tribunal, 15 William Street, Melbourne, Victoria.

Question agreed to.

I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Proposed fit-out of new leased premises for the Department of Immigration and Border Protection Headquarters Project.

As I advised the House when referring this project to the Parliamentary Standing Committee on Public Works, the Department of Immigration and Border Protection proposes to undertake a fit-out and refurbishment of new and existing leased premises at 5 and 6 Chan Street and 45 Benjamin Way, Belconnen; and at 3 Molonglo Drive, Canberra Airport precinct, Australian Capital Territory. The project is driven by the expiration of current leases, targeted Commonwealth efficiencies and the need for appropriate accommodation designed to enhance the department's capability across all areas of business.

The new fit-out will give the department a new workplace that is innovative and fit for purpose. The department has a substantial presence in the ACT, and this will continue when the department is consolidated into four buildings, down from 12. The department will substantially reduce the amount of office space it holds in the ACT, by approximately 13,000 square metres. The proposed works include new workstations, offices and meeting areas, specialist operations areas, new security systems, advanced technology and conference rooms, training and videoconferencing facilities and new, multiuse non-denominational rooms and amenity areas.

The committee has conducted an inquiry and is of the view that the project signifies value for money for the Commonwealth and constitutes a project that is fit for purpose and expedient to carry out.

On behalf of the government, I would like to thank the committee for once again undertaking a rigorous and timely inquiry. Subject to parliamentary approval, the fit-out is expected to begin in August 2017, with completion scheduled for mid-2018. The remainder of the buildings are to be completed by 2021. I commend the motion to the House.

Tony Zappia (Makin, Australian Labor Party, Shadow Parliamentary Secretary for Manufacturing) Share this | Link to this | Hansard source

I note the comments of the minister just a moment ago, but, as I made clear when reporting back on behalf of the Labor members of the Parliamentary Standing Committee on Public Works, the Labor members did not support this project at the time. Labor wants officers of Border Force to have the resources and facilities that they need to keep Australia's borders strong. But during the inquiry the committee identified issues with the project's proposed costing. The committee disagreed with the Department of Immigration and Border Protection about the incentives and took the view that interest payable on loans should form part of the total cost of the project. We also experienced difficulties with the department throughout the inquiry and were left unimpressed by the way the department provided information to the committee on this project.

Labor is not convinced that this proposal represents value for Australian taxpayers. I can summarise the reasons why. I repeat: we understand and support the need to have strong border protection measures in place, and we also understand the changing nature of Border Force operations in Australia. However, the interest payments on the incentive payments do not appear to be properly accounted for in the figures provided to the committee. Secondly, the cost-benefit analysis savings that were reported to the committee are based on a 30-year projection of the project. The lease period of these premises is for 15 years plus two five-year extension rights. That means a total of 25 years. There is no doubt that unforeseen expenditure will occur between now and the next 30 years, and to try and extrapolate savings over such a long period can only be based on speculative figures at best. Thirdly, the fit-out costs of this project, in comparison to other fit-out costs, also appear to be somewhat high. Lastly, the square-metre lease cost of the airport precinct building also appears to be high, based on other market rates and the availability of other buildings. For those reasons we believe that the project does not represent good value for Australian taxpayers. For those reasons Labor members of the Public Works Committee opposed this expenditure.

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

The question is that the motion moved by the minister for a proposed fit-out of the new leased premises for the Department of Immigration and Border Protection Headquarters Project approval for work be agreed to.

Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to this | Hansard source

I am looking for some bipartisan support on this one, and I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Proposed Melbourne Immigration Transit Accommodation Project, Broadmeadows, Victoria.

Question agreed to.

I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Russell Offices buildings 5 and 6, infrastructure upgrade, Russell, ACT.

Question agreed to.

I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Seaward Village—Proposed upgrades to housing for Defence families at Seaward Village, Swanbourne, Western Australia.

Question agreed to.

I move:

That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Stage One of the Garden Island (East), Critical Infrastructure Recovery Program, Sydney, NSW.

Question agreed to.