Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

As Deputy Chair of the committee I present the following report:

Public Works—Parliamentary Standing Committee—Referrals made September, October and November 2015 (1st report of 2016)—Report, February 2016.

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

by leave—This report 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 7,500 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 functionality and level of protection against current threat offered by the existing fleet is well past its useful life. The current ageing fleet also incurs a maintenance liability with the continued decrease in spare parts availability.

The primary objective of this project is to provide the infrastructure necessary to maintain the new fleet of vehicles. 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 representatives 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. Defence will consider any feedback. 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, which is already a very busy base. The project will maintain an 'email inbox' for community members to make contact at any time 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 all 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 time on the effectiveness of its consultation strategies with community groups around Gallipoli Barracks, including:

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 in 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.

The next project 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 that 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 fit-out works are to be undertaken in a staged approach commencing in March 2016, with an anticipated completion date of April 2017.

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

The final referral 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 House.