Page 7 - Week 01 - Tuesday, 15 February 2011
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So we have got a single building influencing the entire strategy instead of having a strategy that influences what the government does, in particular, with this building. The government is putting the cart before the horse in this case. The potential to get it wrong, as it has done on many occasions, I think, is highlighted simply by its answer to the recommendation from the Auditor-General. Paragraph 3.21 states:
The Committee has a concern about whether the Government has fully considered the impact a new government office building may have on the Canberra property market. The Committee also has concerns about whether the process advancing the construction of a purpose built office building as the ACT Government’s preferred office accommodation option has adequately considered alternative options.
The dilemma for us as a committee, and indeed for the community, is that we are yet to see any analysis. The government have said they will provide the analysis when they are finished, but our fear as a committee is that they will make the decision and release the analysis at the same time. The committee has considered what might happen—whether or not it is the re-use of existing office accommodation versus new, or whether the government just should rent a new building which is coming online. There are a number of options there. In paragraph 3.27 the report says:
The Committee is concerned about the opportunity cost of funds that may be tied up in the project, if it were to proceed, against the lost opportunity of investing these funds in alternative infrastructure ventures or capital projects that may also yield positive benefits.
The problem here is that we were told in hearings that the cost of the building might be something like $300 million and the fit-out might be another $100 million. Although the government does not have a preferred option at this time, if the government were to invest $400 million in that one project, what is it that $400 million might be spent on? I am sure the people of Gungahlin will say Majura Parkway is probably a pretty valid consideration. I know there are fears as to whether or not the government can build a dual carriageway on time and on budget. We have seen the debacle that is the GDE. The people of Gungahlin would have an expectation that that $400 million may well assist in building the road access that they deserve.
I know the business community has a concern that $400 million could easily be allocated to something like a new convention centre, something that this government has been promising for about nine years. We are yet to get a site, let alone a commitment to building a new convention centre. The committee canvasses options like light rail. If there is $400 million in the offing, that might be something that goes to light rail. But if the work has not been done and we have not determined what the opportunity costs are then, of course, we will never know.
The committee goes on to say: “We understand the government has undertaken a detailed economic analysis. We have requested a copy of that analysis. It should be made available some time. The government has said that it will make it available.” But we have a suspicion that it may come after the government has made its decision. At paragraph 3.29 the report says:
The Committee is of the view that the Government has more work to do to make the public case for a whole-of-government office accommodation building.
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