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 report No. 9 of 2023: Department of DefenceDefence fuel transformation programTranche 2 facilities project.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—On behalf of the Parliamentary Standing Committee on Public Works I present the committee's ninth report for 2023. This report considers a proposal referred in September from the Department of Defence for its fuel transformation program tranche 2, which will take place at multiple Defence sites across Australia. The total cost of the proposed project is $286.9 million.

Following on from the first tranche of Defence's fuel transformation program, the proposed works will enhance the operation and performance of the defence fuel supply chain. This extensive supply chain distributes over $430 million of fuel each year through more than 100 sites across the nation. Works will take place at nine of these sites, which are located in South Australia, Victoria, Western Australia and Queensland. The works will consist of the following items: the construction of new fuel facilities and infrastructure, the decommissioning and demolition of existing fuel facilities and infrastructure, environmental remediation, and the construction of communications infrastructure to support the operation of Defence's fuel network.

Many of Defence's fuel storage assets are at least 30 years old and are no longer fit for purpose. Some single-wall steel tanks are beyond their service life, are no longer meeting current standards and are at risk of causing environmental harm through leakage. The works are expected to increase the service life of fuel storage assets by 50 years or more. Further, the works will support Defence's long-term net zero strategy and future transition to biofuel, as the new fuel storage can be used for biofuel and, obviously, for fossil fuel.

The committee understands that, if the project is tendered under budget, Defence will then use the savings to carry out project works in lower priority sites which are currently earmarked for the third and final tranche of the fuel transformation program. The committee notes that the completion of these items in conjunction with the proposed works where possible would maximise efficiency in both time and cost. I'm reliably informed by my wonderful secretariat that this is not an unusual process.

The committee would like to thank personnel from the Department of Defence for facilitating a site inspection at one of the sites where works are proposed, the Garden Island precinct in New South Wales. The visit gave members of the committee an opportunity to understand the importance of the fuel transformation program for defence operation, as well as the necessity of each project element proposed in tranche 2. The committee recommends that it is expedient that the proposed work be carried out, and I commend the report to the House.