Page 2766 - Week 10 - Tuesday, 14 August 1990
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Mr Jensen: Are you going to table it?
MR CONNOLLY: I am quite happy to do so, Mr Jensen. The letter stated:
You make payment to all contractors covered by the statement within 7 days of receipt of monies due from ACT Public Works.
ACT Public Works will audit your accounts each month in the last week of the month to check that all payments due to contractors have been made within 30 days of presentation of their accounts.
Mr Acting Speaker, our understanding is that those audits were not carried out. I would be pleased to hear to the contrary if that is, in fact, true. That letter - and I am quite happy to table a copy of it - was, I understand, widely known in the business community in the building sector. It was - - -
MR ACTING SPEAKER: Do you seek leave to table that, Mr Connolly?
MR CONNOLLY: I seek leave to table the following paper:
Public Works - Copy of letter from Project Engineer, Department of Urban Services to R and G Shelley Group, dated 20 March 1990 relating to progress payments to contractors.
Leave granted.
MR CONNOLLY: I understand that it was widely known in the in the business community that that statement had been made. It was widely known that ACT Public Works had undertaken to audit accounts to ensure that subcontractors were being paid. This was at a time when the Government was aware of the cash flow problems - a situation leading the contractors to believe that they were secure.
Later, on 3 April 1990, Ms Follett asked Mr Duby whether the financial viabilities of contractors were investigated thoroughly prior to the awarding of contracts for ACT Public Works. The answer - and I am quoting from Hansard, 1 May 1990 at page 1481 - was that:
The size of a project will govern the extent of financial assessment. All successful tenderers over $200,000 are investigated. Lesser tenderers receive only cursory investigation unless:
a. doubt exists as to the tenderers financial capacity ...
Mr Acting Speaker, I would suggest that that is a clear statement that in the case of contracts over $200,000 the
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