Page 2877 - Week 11 - Thursday, 22 October 1992

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Given the large impact of these Commonwealth works, the Government believes that a further expansion of the program at this stage would not be appropriate. However, the forward design program ensures that any future expansion of the program remains a feasible option. As a demonstration of this foresight, the Government has placed the Lanyon High School project on the forward design program. The Government will keep the total size of the program in future years under review, having regard to the matters raised by the committee. Madam Speaker, the committee identified the urban landscape environment, refurbishment of community centres, and schools maintenance and playground upgrading as areas of priority should additional funding be available. I would like to impress on members of the Assembly that the Government has an ongoing commitment to such projects and will have regard to the committee's findings in the development of future capital works programs.

Madam Speaker, I should note that capital works spending is not the only means of creating employment. The Government has also introduced a range of other budget initiatives designed to encourage job growth. These include the establishment of a further 100 Jobskills places, a new Tourism Development Unit to help stimulate activity in that industry, increased employment and training grants, and the Youth Conservation Corps. The Government supports the committee's recommendation regarding the need for full and complete information to be provided to the committee. Public consultation undertaken in respect of projects will be reflected in the briefing material provided to the committee. As I have previously stated, the inquiry forms an important stage of the consultation process in that the public can provide comments on particular proposals and priorities.

The committee also expressed concern at the short amount of time it had to consider the capital works program this year. It recommended that there be a minimum period of 10 weeks between the date of referral of the program to the committee and the date upon which it is required to report to the Assembly. The Government agrees that a longer time for deliberation by the committee is desirable to permit a thorough examination and assessment of projects in the capital works program. This would also facilitate the committee's consideration of more general issues associated with the program. The Government also agrees with the committee that there is a need for a better cost-benefit assessment of projects in the capital works program. We propose that, beginning with the 1993-94 program, major projects over $1m should have an assessment of costs and benefits wherever practicable. The $1m threshold will avoid excessive administrative expenses for smaller projects.

The Government also supports the recommendation of the committee that further consideration be given to the issue of project delivery and the capital works process. The recommendation focused on four issues, including the size of construction contracts; performance rating of contractors; routine use of contractors with high managerial, financial and technical performance ratings; and the use of alternative delivery methods. A review of present arrangements will be undertaken by the Department of Urban Services and Treasury, in consultation with client agencies, to ensure that the committee's concerns are properly addressed. Madam Speaker, I thank the committee for their examination of the 1992-93 program and commend the Government response to the Assembly.

Question resolved in the affirmative.


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