Page 3982 - Week 13 - Tuesday, 23 November 1993
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
projects in order to contribute to improved outcomes. To assist early planning and coordination of projects, a working group of officials will examine the capital and recurrent consequences of projects in excess of $1m. This working group will be of an advisory nature only and will have a role in viewing the quality of project information and planning. Sponsoring Ministers and their agencies will retain primary carriage of projects.
To demonstrate the savings achievable from the adoption of value management, a limited number of projects selected across agencies will be assessed on a value management basis. Subject to a positive outcome of this trial, consideration will be given to wider application of value management to the capital works program. The Government supports the committee's recommendation that a clearly defined user brief should be developed by the agency concerned, together with whole-of-life costings and, where necessary, a cost-benefit or cost-effectiveness analysis prior to inclusion in the capital works program.
The committee has sought disclosure of indicative capital works projects in future years. The Government maintains a rolling four-year forward capital works program to support long-term planning for facilities provision. However, the Government has resolved not to provide this information, due to the potential adverse effects which may result from this disclosure. Public discussion of proposals that may have little prospect of Government endorsement and which increase cost to the taxpayer from additional resources required may be one outcome of the longer horizon planning information sought by the committee. The Government is concerned to avoid undue expectations being raised on the part of the community and the building industry for the timing and provision of specific facilities and services. Additionally, the Government considers it essential to maintain a flexibility in future years' capital works programs to responsibly and adequately respond to changing circumstances, including a likely reduction in Commonwealth funding, altered priorities, demographic and technological changes, and fluctuating economic activity.
Lastly, the Government wishes to draw attention to the timetable for referring the capital works program to the committee. It has been the practice in previous years to refer the program to the committee in advance of the normal budget cycle. This has also meant that it has not been possible for decisions on the size of the program and funding arrangements for projects within the program to be made in the context of all other major budget decisions. The additional information on capital works requested by the committee also has implications for the timing of the referral of the draft capital works program to the committee. This includes information on the status of projects in the previous year's program and greater final information on proposed projects.
The Government is carefully giving consideration to the timing of the 1994-95 budget. However, this will be heavily influenced by the timing of the 1994 Premiers Conference and Loan Council and the timing of the Commonwealth budget. These matters have not yet been resolved by the Commonwealth. Without prejudging this matter, the Government believes that it would be more appropriate to move to progressively bring the timing of the ACT budget forward. Consistent with this and to ensure improved information, it would be appropriate to refer the capital works program to the committee at the same time as the budget is presented. This would enable scrutiny of capital works proposals in the context of the Government's overall budget strategy.
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .