Dean Smith (WA, Liberal Party) Share this | Hansard source

On behalf of the Joint Statutory Committee on Public Works, I present two reports of the committee as listed at item 14 on today's order of business. I seek leave to incorporate tabling statement in Hansard.

Leave granted.

The document read as follows--

Mr President

On behalf of the Parliamentary Standing Committee on Public Works, I present the Committee's first two reports for 2016.

Report 1 of 2016 addresses three projects referred to the Committee in September, October and November 2015.

The first project, LAND 121 Unit Sustainment Facilities, concerns infrastructure works at a number of Australian Defence Force units around Australia. The works are to provide new and upgraded facilities to support the introduction, operation and deployment of the ADF's new vehicle fleet.

LAND 121 is a multi-phased project providing the ADF with approximately 7500 high-capability field vehicles. Defence advised these vehicles represent a significant increase in capability. They replace multiple vehicle fleets that have been in service since the early 1980s. The estimated cost of the project is $276.5 million.

The Committee received a briefing from Defence and conducted public and in-camera hearings on 27 November 2015.

At the public hearing the Committee spoke with a representative from the Gallipoli Precinct Action Group - or GPAG - a local action group of residents living in the vicinity of Gallipoli Barracks at Enoggera. Concerns were raised regarding traffic management, Defence's community consultation and security of Defence personnel and others.

Following the public hearing Defence advised that as part of the process to finalise the Traffic Management Plan for Gallipoli Barracks, meetings with local action groups will be arranged. Wherever possible Defence will implement appropriate measures to minimise the impact of construction traffic on the local community. Further, Defence stated that a quarterly meeting with community groups will be established for the duration of the proposed works at Gallipoli Barracks, and that the project will maintain an 'email inbox' for community members to make contact with the project team.

The Committee considers that known community groups, such as GPAG, should be involved more in consultation during the planning and development phases of Defence projects. This consultation should continue throughout the delivery of the project and beyond.

The Committee requires that the Department of Defence report back in six months on the effectiveness of its consultation strategies with community groups around Gallipoli Barracks.

At the hearing Defence advised that contamination investigations had been conducted at all proposed sites for the project. Defence was confident that the environmental risks identified were minor and could be managed through site-specific Construction Environmental Management Plans.

The Committee requires that the Department of Defence keep the Committee advised on the development of the site-specific Construction Environment Management Plans for the project, including any increase to environmental risks found during the Initial Environmental Review.

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

Mr President, the next project in Report 1 concerns the fit-out of office accommodation at the Australian Taxation Office in Northbridge, Western Australia. The primary objective of the project is to refurbish a reduced leased area and to meet current legislative and efficiency standards. The estimated cost of the project is $27.5 million.

The Committee received a briefing from the ATO and conducted public and in-camera hearings in Canberra on 4 December 2015.

At the public hearing, representatives of the ATO discussed procurement methodology, construction costs and leasing arrangements to demonstrate the proposed project represents the best value for money for the Commonwealth.

The building, at Francis Street, Northbridge, was purpose-built for the ATO in 1992. The ATO has a long term operational requirement in Perth. However, through the continual evolution of work practices, a significant area of the accommodation was being underutilised.

The ATO has negotiated a new lease contract with the current landlord until 2024. The renewed lease area is reduced by approximately one third relative to the previous lease.

The revised tenancy area requires a refurbishment as the current fit out is 13 years old and has reached end of life. At a private briefing the ATO showed the Committee video of the existing fit-out. The video demonstrated the aged and poor condition of the existing fit-out.

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

Mr President, the final referral considered in Report 1 is from the Department of Foreign Affairs and Trade for the base building refurbishment and integrated fit-out of the area to be leased by the International Energy Agency within the Australian Chancery in Paris . The estimated project cost is $27.5 million.

At the request of DFAT the Committee's hearings for this project, which were scheduled for February, have been postponed. The Committee has suspended consideration of this project, pending further information from DFAT.

I commend this report to the Senate.

Mr President, Report 2 of 2016 addresses the AIR 5431 Phases 2 and 3 project which was referred to the Committee in September 2015. The Department of Defence is seeking approval to undertake infrastructure works at 18 air traffic management centres across Australia.

Defence and Airservices Australia have partnered to develop a single civil-military air traffic management system. The unified air traffic management system will allow Defence to conduct various operations, while enabling the civil aviation industry activities to continue in a safe and flexible manner.

The objective of the AIR 5431 Phase 2 and 3 project is to upgrade air traffic control towers and airfield systems facilities that were constructed in the 1960s and which are no longer fit for purpose. The project will supply training, support and maintenance facilities, in order to allow air traffic control services to continue uninterrupted throughout the system rollout and operation. The estimated cost of the project is $409.9 million.

Construction on the project is expected to commence in mid-2016 at RAAF Base Amberley. Works at other sites will commence progressively from late 2016, with all works will be completed by the end of 2021.

During the inquiry the Committee received evidence regarding contamination at RAAF Base Williamtown. The contaminants, known as PFOS1 and PFOA2, were commonly found fire retardant foams used in aviation rescue fire-fighting operations up until the mid-2000s.

The Committee learned that Defence first detected PFOS and PFOA on base at Williamtown in 2012, and that it was aware of the risk that the contaminants could migrate beyond the boundary of the base in storm water runoff and through the water table. In 2015 Defence confirmed there was contaminated water outside of the base.

The detection of PFOS and PFOA in areas around RAAF Base Williamtown has been a cause of anxiety for local residents. It has also had significant financial impacts for local farmers and for fisheries in the vicinity.

The Committee notes that Defence's original submission included only one line referring to potential contamination at the project sites. It was submissions from Hunter Water and the New South Wales Environmental Protection Agency, plus media articles and a local member on the Committee that brought this issue to the forefront of the Committee's considerations.

Although Defence advised in its submission that no significant issues were raised in its community consultations that would impact on the proposed works, the Committee is aware that at the time Defence and the community were engaged in robust and extensive public meetings regarding contamination issues at RAAF Base Williamtown.

The Committee believes Defence should have been more forthcoming regarding contamination issues at Williamtown, not only for this project but also for two previous project referred in 2014 and 2015 which included significant works at Williamtown.

In a supplementary submission Defence assured the Committee that it intend to comply with a range of contamination management strategies proposed by Hunter Water and the NSW EPA, and that it had adopted measures to ensure that any current and future works at Williamtown would not exacerbate the contamination issues.

Mr President, PFOS and PFOA are referred to as legacy contaminants. They were used extensively at Defence and civil airfields around Australia for a 30 year period from the 1970s. This issue has the potential to be broader than Williamtown, involving Defence bases and other airfields across Australia.

The Committee notes that the Senate Foreign Affairs, Defence and Trade References Committee is conducting a broad inquiry into PFOS and PFOA contamination. Its first report, tabled on 4 February 2016, was directed to contamination at RAAF Base Williamtown. The Senate Committee is continuing its inquiry into PFOS and PFOA contamination at Williamtown and on other sites in Australia. I look forward to seeing the recommendations when the Senate Committee tables its final report.

However, having regard to the role and responsibilities of the Public Works Committee as set out in its establishing legislation, the Committee is satisfied that the AIR 5431 Phases 2 and 3 project has merit in terms of need, scope and cost. The Committee recommends that the project proceed. But, the works must be managed appropriately so as to not cause or exacerbate contamination issues.

To this end, the Committee requires that Defence provide it with an update detailing the status of contamination at RAAF Base Williamtown by June 2016. Also, the Committee requires Defence adhere to all the recommendations made by Hunter Water Corporation and the NSW EPA in association with works at RAAF Base Williamtown.

Further, the Committee requires Defence to work closely with Hunter Water and NSW EPA on the works at RAAF Base Williamtown, including:

Mr President, I commend this report to the Senate.

1 Perfluorooctane Sulphate

2 Perfluorooctanoic Acid

I move:

  That the Senate take note of the reports.