Brendan O'Connor (Gorton, Australian Labor Party) Share this | Link to this | Hansard source

On behalf of the Parliamentary Standing Committee on Public Works I present the sixth and seventh reports of the committee for 2006 relating to fit-out of new leased premises for the Department of Agriculture, Fisheries and Forestry in Civic, ACT, and fit-out of new leased premises for the Australian Taxation Office at the site known as section 84, precincts B and C, Canberra City. I am making this statement on behalf of the chair of the committee, who is absent today, and all other members of the committee.

Ordered that the reports be made parliamentary papers.

by leave—The sixth report of 2006 addresses the fit-out of new leased premises for the Department of Agriculture, Fisheries and Forestry in Civic, ACT, at an estimated cost of $36 million. The department anticipates that the fit-out will provide a modern, efficient work environment which will meet the department’s needs for the next 15 years. The new building will meet Commonwealth building, environmental and security standards and will take account of the occupational health and safety needs of the staff.

The committee investigated all aspects of the work, paying particular attention to lease arrangements, workflow considerations and building facilities.

To accommodate the department at its new premises, overflow office space in the adjacent building has been included in the lease arrangements. The department assured the committee that tenancy of both buildings would be cost effective and beneficial for staff amenity. Furthermore, the lease will provide flexibility should not all the space in the adjacent building be required.

The committee was particularly interested in the department’s project cost control committee, which was established to oversee all aspects of the relocation project, including strategic direction, goals and priority setting. The committee commends the department on the cost control committee’s management of the project and hopes that other agencies will undertake similar initiatives.

The department submitted that the on-site provision of a cafe, gymnasium and child-care facilities was being considered against the availability of those facilities in the vicinity of the new premises. The committee recommends that the department advise it when a decision has been reached regarding the provision of on-site child care.

Following consultation with the Department of Finance and Administration, the committee was satisfied that the lease incentive obtained by the department represents standard commercial practice and recommends that the project proceed at the estimated cost of $36 million, noting that this figure may be reduced by the lease incentive.

The committee’s seventh report of 2006 presents findings in relation to the proposed fit-out of new leased premises for the Australian Taxation Office at the site known as section 84, precincts B and C, Canberra City, ACT.

The purpose of the proposed work is to consolidate ATO national headquarters at one location. The ATO currently occupies seven buildings in central Canberra, which has led to administrative and operational inefficiencies. Consolidation of the national headquarters into a single complex will allow for the implementation of more collaborative work practices, uniformity of workspace and increased efficiency.

During the hearing into the proposed work, the ATO amended the project cost estimate to $76.879 million, including GST. The committee inquired into the reason for the increase and was satisfied by the information provided by the ATO. The committee was also satisfied with the information provided on the proposed lease incentive arrangements for the project.

Given that the ATO proposes to relocate from seven different buildings, the committee was interested to know what contingency arrangements would be exercised should the fit-out of the new premises be delayed. The ATO assured the committee that it had already extended two of its leases and added that its seven existing leases each have different expiry dates, which provides some flexibility in the event of construction delays.

Having given detailed consideration to the proposal, the committee recommends that the proposed fit-out of new leased premises for the Australian Taxation Office proceed at the estimated cost of $76.879 million, noting that any money saved through the lease incentive will be returned to consolidated revenue.

I wish to thank my committee colleagues and all those in the secretariat—Margaret, Vivienne, Raymond and Penny—who assisted with the public hearings. I commend the reports to the House.