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

On behalf of the Parliamentary Standing Committee on Public Works, I present report No. 4 of 2015, Referrals made December 2014 and March 2015. I move:

That the Senate take note of the report.

On behalf of the Parliamentary Standing Committee on Public Works, I present the committee's fourth report of 2015, addressing referrals made in December 2014 and March 2015. Report 4 of 2015 considers three referrals received by the committee: one from the Department of Finance in December 2014 and one each from the Department of Defence and the Department of Foreign Affairs and Trade in March 2015.

In the first referral, Finance sought approval from the committee to remediate sections of the Cox Peninsula in the Northern Territory. Commonwealth use of this land for maritime, communications and Defence purposes has resulted in extensive contamination at ground level and below. Without substantial remediation, there is risk that in-ground contamination will impact local bore water. This would present a potential health risk to site users and the local community. Finance advised the committee that the preferred method of remediation was to secure contaminated material in a sealed 'containment cell' and recycle non-contaminated material where suitable. The estimated cost for the work is $31.8 million, over four years.

The Cox Peninsula is subject to an Indigenous land claim by the Kenbi Aboriginal people. The claim was lodged in March 1979. In late 2000, the Aboriginal Land Commissioner recommended that a substantial area of the land claimed be granted as Aboriginal land. In January 2009, the Australian government undertook to settle the claim. The committee visited the Cox Peninsula and saw the need for remediation firsthand. The committee also held hearings in Darwin on the same day. Finance advised the committee that the greater part of the land will be transferred to the traditional owners on settlement of the claim. A small portion of the site will not be transferred until the remediation is complete. At the public hearing, the committee heard that Indigenous groups are keen to access employment and training opportunities associated with the remediation. The committee encourages Finance to make a range of positions available to local Indigenous residents where possible.

While the committee is satisfied that the project has merit in terms of need, scope and cost and recommends that the project proceed, it has asked Finance to report on progress annually. In addition, the committee seeks information on Indigenous employment levels and on any issues raised by the community in relation to the project.

The second referral concerns the construction of a multi-user barge ramp facility at East Arm in Darwin. The proposed facility is a collaboration between Defence and the Land Development Corporation in the Northern Territory, with an estimated cost of $18 million. The cost to Defence is $16.1 million, excluding GST. The barge ramp facility will provide Defence watercraft capability to load and unload helicopter docks, amphibious craft and explosive ordnance in Darwin, irrespective of tidal conditions. The works will also allow Defence to provide humanitarian assistance, disaster relief and civil evacuation duties in the region.

The committee received a briefing from Defence and conducted a site inspection. This was followed by public and in camera hearings. Defence advised the committee that the new barge ramp facility will be managed by the Land Development Corporation through a deed of licence. The deed of licence will be valid for a period of 20 years, with the option of two five-year extensions. Defence will have access to the barge ramp facility for 60 days per calendar year, which Defence has advised is sufficient to meet its needs. For the remaining days, the facility will be leased to commercial users. Revenue will fund ongoing maintenance. Defence will be granted first opportunity to take up any unused commercial days over and above the 60 days, at no extra cost.

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

The final referral concerns reconfiguring and refurbishing residential accommodation and staff amenities at the Australian Embassy in Kabul, Afghanistan. In February 2015, the committee received two medium works notifications for the embassy site in Kabul. The committee agreed to examine them as one project and sought referral of the project through a motion of the House. The project relates to five leased residential housing lots constructed in the 1960s and 1970s. The Department of Foreign Affairs and Trade advised the committee that the buildings are in need of extensive repair and refurbishment. There is also a need for increased security features.

The committee received a briefing and conducted hearings in Canberra. The committee was told that the works will consolidate the current property footprint in a way that substantially improves security and safety. This is especially pertinent, given embassy staff in Kabul are working in a high-risk environment. Drawing on their own experience in delivering overseas projects and similar works undertaken for the British and Canadian embassies in Kabul, the Department of Foreign Affairs and Trade is confident that the tender process will achieve value for money. The department also identified a number of ways that consolidation will result in cost savings, with fewer movements between locations and reduced maintenance cost. The estimated cost of the project is $23.25 million. The committee is satisfied that this project also has merit in terms of need, scope and cost and recommends that the project proceed. In concluding, I commend the report to the Senate.

Question agreed to.