Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) 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: Department of Defence—Guided Weapons and Explosive Ordnance Storage Program Tranche 2.

The Department of Defence is proposing works to provide increased guided weapons and explosive ordnance storage facilities at the Defence Establishment Orchard Hills, New South Wales, at an estimated cost of $244.9 million excluding GST. The proposed works include earth covered buildings for explosive ordnance storage, non-explosive ordnance storage facilities, upgraded electrical supply infrastructure and engineering services required for the new facilities.

The project was referred to the Public Works Committee on 1 July 2024. On 5 November 2024 the committee tabled a report on the project in the House of Representatives recommending that the House resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the project.

The committee also recommended that the project funding be increased to allow additional earth covered buildings, which are currently below-the-line items, to be completed as part of this project. The government thanks the committee for this recommendation. However, there is no additional funding available within the Defence Integrated Investment Program to increase the project budget to allow additional earth covered buildings to be delivered by the project. This is because all other funding within the Defence Integrated Investment Program has been allocated to other priorities outlined in the National Defence Strategy. Additional earth covered buildings can only be delivered by the project if there are cost savings against other project scope elements during delivery. On that basis the government does not agree to the committee's recommendation.

Subject to parliamentary approval, the proposed works are expected to commence in late 2024 and be completed by late 2026. On behalf of the government, I thank the committee, ably chaired by the member for Moreton, for undertaking a timely inquiry. I commend the motion to the House.

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: Department of Defence—Explosive Ordnance Facilities Northern NSW Redevelopment project.

The Department of Defence is proposing works to refurbish, upgrade and replace facilities at the Defence Establishment Orchard Hills, New South Wales, at an estimated cost of $359.3 million excluding GST. The proposed works include new and upgraded working facilities required for the procurement, storage, distribution and maintenance of explosive ordnance and support activities; new and upgraded training facilities and student living-in accommodation; upgraded base entry and perimeter security; and upgraded utilities and infrastructure to address current and future capability requirements.

The project was referred to the Public Works Committee on 1 July 2024. On 5 November 2024 the committee tabled a report in the House of Representatives recommending the House resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the proposed works.

The committee also recommended that the project budget be increased to allow a second block of 60 additional living-in accommodation rooms to be completed as part of the project.

The government thanks the committee for this recommendation; however, there is no additional funding available within the Defence Integrated Investment Program to increase the project budget to allow a second block of living-in-accommodation rooms to be delivered by the project. This is because all other funding within the Defence Integrated Investment Program has been allocated to other priorities outlined in the National Defence Strategy. The second block of 60 additional living-in-accommodation rooms can therefore only be delivered if there are cost savings against other project scope elements during delivery. On that basis, the government does not agree to this recommendation.

Subject to parliamentary approval, construction of the proposed works is expected to commence in mid-2025 and be completed by mid-2028. On behalf of the government, I thank the committee, ably chaired by the member for Moreton, for undertaking a timely inquiry. I commend the motion to the House.

Question agreed to.