Page 2706 - Week 07 - Tuesday, 28 June 2011
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I want to reflect on one of those Auditor-General’s reports, a recent one, report No 3 of 2011, The north Weston pond project. We could almost have just picked out a report from 2005, 2006 or 2007 and we would have seen similar findings and similar conclusions. I think the great tragedy of this government is that they have not learned from their mistakes. They continue to spectacularly waste taxpayers’ money by not managing their projects properly.
If there is one thing that characterises this government more than anything, it is incompetence on major projects—absolute rank incompetence. The north Weston ponds project is a clear example of that. You do not need to believe me on that; let us believe the Auditor-General, who looked into this. Let us look at some of the conclusions:
ACT Government agencies did not effectively manage the North Weston Pond project to ensure the project was completed for the budgeted cost within the planned timeframe. The project has required significant redesign to address escalating costs due to risks that were known at the earliest stages of the project. The smaller capacity ponds approved by the Minister for Transport in January 2011 are estimated to cost $43.4 million. This is $22.6 million (or 109 percent) more than the originally budgeted amount of $20.8 million. The original planned completion date of May 2011 has not been met.
The location of the North Weston Pond presented significant risks to the project. These risks stemmed from the former uses of the site and existence of the critical Molonglo Valley Interceptor Sewer at the site. ACT Government agencies were aware of these risks from the beginning of the project. However, the growing knowledge and understanding of these risks, including their impact on the project, was not adequately recognised by ACT Government agencies and reflected in project design and cost estimates
Individual processes associated with the planning, design and construction of the pond were generally appropriate and in accordance with industry practice. However, ACT Government agencies did not effectively combine the information and knowledge generated from each process, to ensure the project was completed for the budgeted cost within the planned timeframe.
Specific shortcomings in the management of the project included a failure by
ACT Government agencies to:
apply a robust risk management framework;
implement appropriate project governance or oversight arrangements to benefit from the combined knowledge and expertise of the different agencies and consultants involved in the project;
critically assess the feasibility or otherwise of the pond at key points throughout the project, including cost implications of information that was available; and
critically review the work and advice provided by consultants engaged in the project.
This is not new. This failure of governance is not new to this government. They have been doing it for years, and the taxpayers have continued to have to foot the bill. We could go back to the prison, we could go to the dam, we could go to Emergency
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