Page 4229 - Week 11 - Thursday, 17 Sept 2009
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buildings or smoke in planes.” But I think that if Mr Corbell went and asked the airport he would find out they have a mock plane out there. They actually practise with real flame and real smoke out there because that is one of the things that airport firemen do, Mr Corbell. That is the problem: this is a minister who makes it patently clear that he will be interested in some things and he ignores others, and we can see this.
Let us go to some of the things that the auditor said. Paragraph 5.21 is worth reading because it does catalogue who is to blame for the shemozzle that is the delivery of the new emergency services headquarters. Paragraph 5.21 starts by saying:
After receiving ministerial approval—
Let me read that again; let us be clear about this:
After receiving ministerial approval, the ESA Commissioner exercised what was seen to be his delegation and confirmed a Heads of Agreement for a 10 year lease of Building 183 at Fairbairn. This allowed the ESA commitment to some $11.6 million of base rental, with a 4.5 per cent annual increase, without adequate supporting business cases and details. The capital cost of the necessary fit-out was in addition to this rent.
That is Mr Hargreaves. Let us go on to paragraph 5.22:
Audit found that the agreement to lease was signed on 15 September …
Indeed it was then modified in October. Paragraph 5.23 says:
The six buildings had varying lease periods, and the new commitment increased from $11.6 million plus fit-out, to $33.9 million …
Get that time frame: the first lease was signed on 15 September 2005 for $11.6 million. ACT Property Group got involved to provide some assistance and it went from $11.6 million to $33.9 million plus fit-out. That is a good deal for the taxpayer! This is a project that has just morphed and morphed and morphed. It has gone from $11.6 million to a $75 million project for which we do not know the final cost.
The problem is that, when you go to paragraph 5.49—and it is worth reading the paragraph:
Audit expects the final costs of this project will be much higher, when including the costs of transferring some HQ functions to other sites in Hume and Fyshwick.
And the last sentence in the preceding paragraph says:
This increased Fairbairn commitment—
so we are increasing the commitment—
is accompanied by a smaller—
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