Stephen Parry (Tasmania, Liberal Party) Share this | Link to this | Hansard source

On behalf of the Parliamentary Joint Standing Committee on Public Works, I present the committee’s 70th annual report. I move:

That the Senate take note of the report.

I seek leave to incorporate my tabling statement in Hansard.

Leave granted.

The statement read as follows—

In accordance with Section 16 of the Public Works Committee Act 1969, I present the Committee’s Seventieth Annual Report.  This Report gives an overview of the work undertaken by the Committee during the 2006 calendar year.

In addition to its Sixty-ninth Annual Report, the Committee tabled 19 reports on public works, with a total estimated value exceeding $969 million.  Throughout the year, the Committee conducted 36 meetings, 17 of which were public hearings.

Issues of note arising from the Committee’s deliberations in 2006 included:

• changes to the Public Works Committee Act;
• introduction of a revised Manual of Procedures for Departments and Agencies;
• the Committee’s high workload;
• the timeliness with which public works are referred to the Committee; and
• the quality of evidence supplied by referring departments and agencies.

One of the most significant issues for the Committee this year was the changes to the Public Works Committee Act.  The Committee welcomed an increase to the threshold value for works which must be referred from $6 million to $15 million.  The new threshold is more realistic reflecting increasing costs associated with major projects that have occurred since the figure of $6 million was determined in 1985.

Public Private Partnerships (PPPs) remain and area of concern for the Committee with the absence of a legislative framework for the referral and scrutiny of works delivered through PPP arrangements.  The change in the Act expanding the definition of a ‘public work’ to include works funded through PPP or similar arrangements will hopefully go some way to addressing the issue.  The Committee considered its second PPP work with Project Single Living Environment and Accommodation Precinct (LEAP) Phase One and can foresee an increase in the referral of PPP projects in the future.  Subsequent to the changes to the Act, the Committee revised its Manual of Procedures for Departments and Agencies.

2006 was another busy year for the Committee tabling 19 Reports, or roughly one Report every parliamentary sitting week.  The changes to the Act occurred late in 2006 and did not have a great affect on the Committee’s workload.  Whilst the Committee welcomes the changes to the threshold, it does not anticipate a significant drop in number of future referrals.  For example, of the 19 works considered by the Committee in 2006, only three would fall under the $15 million threshold.

At times throughout 2006, the Committee was the recipient of criticism of for delaying the consideration of projects.  The Committee wishes to remind agencies that the Section 17 of the Act specifically states that, “the Committee shall as expeditiously as practicable consider each public work that is referred to it…and make a report to both Houses of the Parliament”.

The Committee cannot commit to a public hearing date until a work has been referred.  It is, therefore, the responsibility of referring agencies to ensure that they have allowed sufficient time in their project schedules for the full and proper execution of the Committee inquiry process.

In last year’s Annual report the Committee commented that there was a “high degree of variance in the quality of evidence submitted to the Committee”.  During 2006 the Committee noted some improvement in the overall quality of evidence presented, however in several inquiries the absence of transparency in both oral and written evidence was a concern.  The Committee reminds agencies that clear and concise evidence eliminate any unnecessary clarification and questioning subsequent to hearings.

I wish to express my gratitude to all of the members of the Committee for their continued hard work and support throughout 2006.  I would also like to thank the secretariat, Hansard and Broadcasting staff, and those officers in the Department of Finance and Administration who play an integral role in facilitating references and expediency motions.

I commend the Report to the Senate.

Question agreed to.