1981

MELBOURNE UNDERGROUND RAIL LOOP AUTHORITY

REPORT FOR THE YEAR ENDED JUNE 30, 1981

PRESENTED TO BOTH HOUSES OF PARLIAMENT PURSUANT TO ACT No. 8023 SECTION 12 (4}

5th floor Postal Address 50 Queen Street P.O. Box 258 Melbourne Coli ins Street Victoria Melbourne Underground 3000 Victona Rail Loop Authority Australia 3000

The Honourable Robert Maclellan, M. LA 26th October, 1981 Minister of Transport. 35 Spring Street, Melbourne 3002.

Dear Minister, Pursuant to the provisions of the Melbourne Underground Rail Loop Act, 1970, the Authority submits the following report on its operations for the year ended 30th June, 1981 and also statements of its financial transactions for that year and of its financial position as at 30th June, 1981 which to the best of the knowledge and belief of the Members are certified correct.

Yours sincerely,

Sir Robert Roscoe, Chairman

I. F. Beaurepaire, Deputy Chairman

K. A. Alien, Member

G. F. W. Brown. Member

W. H. B. Daddo, Member

W. C. S. Ell is, Member

J. A. Hancock, Member*

·Absent overseas.

3 Members

SIR ROBERT ROSCOE, K.B.E., Chairman

I. F. BEAUREPAIRE, C.M.G., Deputy Chairman

K.AALLEN G. F. W. BROWN, C.M.G. W. H. B. DADDO

W. C. S. ELLIS, O.B.E. J. A HANCOCK, O.B.E. I. A A VASSIE (Appointed 1 July 1981) F. G. WATSON (Appointed 1 July 1981)

General Manager and Director of Engineering F. G. Watson, B. A., F.I.E.Aust., FAI.M., M.I.E.T., M-S.A.E.-A Secretary and Assistant General Manager W. L. R. Daniels, F.C.I.S., F.A.S.A. Consultants-Engineering John Conneii-Mott, Hay & Anderson, Hatch, Jacobs (Principal Consultants) Railway Construction and Property Board Victorian Railways Board

Sub-Consultants to the Principal Consultants Mclntyre Partnership Perrott, Lyon, Mathieson Pty Ltd Stephenson and Turner Riley, Barden and Kirkhope Rider Hunt and Partners W T Partnership Golder Associates Pty Ltd Cameron & Middleton Pty Ltd

Consultants-Property George J. Connor & Associates Pty Ltd Office 50 Queen Street, Melbourne 3000 Registries-Inscribed Stock Public Issues-Commonwealth Trading Bank of Australia 367 Collins Street, Melbourne 3000 Private Issues-50 Queen Street, Melbourne 3000

4 Report of Melbourne Underground Rail Loop Authority for the year ended 30th June, 1981

The Authority is responsible in accordance with the Melbourne Underground Rail Loop Act 1970, as amended, for supervising and co-ordinating the planning, financing and construction of the underground rail loop and for the development of the Museum Station and Flagstaff Station sites and adjacent areas.

Year 1980/81 was a time of significant accomplishment in the on-going program of the Authority. On 14 November 1980 the first stage of the underground loop project, incorporating Museum Station and the loops serving the Caulfield-Sandringham and the Burnley Groups of lines, was transferred to the Victorian Railways Board for operation. The transfer was announced by His Excellency the Governor of Victoria, Sir , to a widely representative parliamentary and citizen group at a handing-over ceremony on Museum Station. The running of test trains around the Loop commenced on 4 December 1980, followed by a period of train crew familiarisation. The official inauguration of train operation took place on 24 January 1981 and regular passenger services commenced on 26 January-Australia Day. Within a short period up to 300 passenger trains daily were traversing the Loop with approximately 30,000 passengers passing through the ticket barriers of Museum Station. The Authority continued with the rema1ning sect1ons of the construction program including Parliament and Flagstaff underground stations, the Clifton Hill loop/City Circle and the North Melbourne loop.

Completion Schedule The first stage of the computerised train describer system being installed in the Metropolitan Train Control Centre (METROU, in co-operation with VicRail, is expected to be operational during the first quarter of 1982, followed by the transfer to VicRail of the third loop-for the lines which pass through Clition Hill and Jolimont. and the connecting tunnel and ramp which complete the City Circle. The west booking hall of Museum Station is planned to be operational in the second quarter of 1982, followed by the south booking hall of Parliament Station in the third quarter. Flagstaff Station and the north booking hall of Parliament Station are planned to be transferred to VicRail during the first quarter of 1983, and the remaining loop for the lines through North Melbourne is planned to be transferred by mid 1983. The Authority is not involved with train operation or passenger handling which are the exclusive provinces of VicRa1l.

Queen's Birthday Honour for Authority Chairman

The Queen's Birthday Honours List published 13 June 1981 carried notification that Robert Bell Roscoe had been appointed Knight Commander of The Most Excellent Order of The Bntish Empire, "for distinguished publrc service". The investiture ceremony was performed by the Governor General of Australia, His Excellency The Right Honourable Sir Zelman Cowan, AK, G.C.M.G., G.C.V.O., K. St.J., Q.C., on 28 August 1981. Sir Robert Roscoe, K.B.E., was appointed inaugural Chairman of the Melbourne Underground Rail Loop Authority at the beginning of 1971 and was in office at the end of the 1980181 year.

5 Construction 1980/81 Details of the works undertaken during 1980181 are as follows-

UNDERGROUND PORTION Eastern Section-Fiinders Street-Wellington Parade to Swanston Street via Spring and LaTrobe Streets. Parliament Station construction. by John Holland (Constructions) Pty Ltd • completion of the south booking hall structure under Spring Street • completion of floor slabs and ducts for all platforms. and south concourses and escalator declines. • completion of underground service structures in the south end of the station and excavation for the light well. by Dillingham Australia Ltd and nominated sub-contractors Fire Fighting Sprinkler Co Ltd; Matthew Hall Mechanical Services Pty Ltd; McNiece Bros. Pty Ltd • completion of the installation of architectural finishes adjacent to the tracks in the Burnley and Caulfield-Sandringham platform tunnels, and commencement of finishes adjacent to the tracks in the Clifton Hill loop/City Circle and North Melbourne loop platform tunnels. • commencement of construction of the northern booking hall structure. • commencement of construction of the south entrance (91 Spring Street). • commencement of the architectural finishes in the south booking hall, the south escalator declines, and all platforms. • commencement of manufacture and installation of fire fighting, electrical and mechanical services in the south booking hall. escalator declines and concourses and platforms. by Otis Elevators Pty Ltd • commencement of installation of 13 escalators and manufacture of two lifts tor the station and booking hall. Central Section-Swanston Street to William Street via LaTrobe Street Museum Station construct1on. by John Holland (Constructions) Pty Ltd and nominated sub-contractors Altone Pty Ltd; Fire Fighting Sprinkler Co. Ltd; Kilpatrick Green Pty Ltd • completion of the east and north entrance booking halls and installation of architectural finishes and electrical and mechanical equipment in the booking halls and main station. by Otis Elevators Pty Ltd • commissioning 18 escalators and three lifts in the main station area and the east and north booking halls. • commencement of installation of three escalators for the west booking hall. by Watts Construction Division Pty Ltd • completion of excavation and concreting for the west draught relief structure and west booking hall. by John Holland (Constructions) Pty Ltd • commencement of architectural finishes installation for the west booking hall and the west draught relief shaft Western Section-West of William Street Flagstaff Station by Dilllngham Australia Ltd • completion of the installation of architectural finishes adjacent to the tracks in the Burnley and Caulfield-Sandringham platform tunnels.

6 by Dillingham Australia Ltd and nominated sub-contractors Matthew Hall Mechanical Services (Pty) Ltd; Barker and Taylor Pty Ltd • commencement of construction of the north and south entrance to the booking hall and installation of architectural finishes and electrical and mechanical services in the four platforms, escalator declines and concourses. by Otis Elevators Pty Ltd • commencement of installation of 9 esca1ators and one lift in the main station area.

OVERPASS STRUCTURE FOR ELEVATED TRACKS BETWEEN FLINDERS STREET AND SPENCER STREET STATIONS, NECESSITATED BY LOOP OPERATION by Victorian Railways Board • completion of track work and signalling re-arrangements to the existing viaduct, to suit loop operations.

APPROACHES FROM SURFACE TRACKS TO JNDERSTREET TUNNELS by Victorian Railways Board (a) between Flinders Street and Richmond Stations • completion of re-arrangement of track work and signalling providing the final surface connections to the Burnley and Caulfield-Sandringham loops. • completion of closure of roof deck sections previously left open for access purposes in the Caulfield-Sandringham loop. • completion of construction of the remaining box tunnel sections of the Sandringham approach ramp to the Caulfield-Sandringham tunnel between theY -Junction and Richmond Station. (b) Flinders Street East Yard • continued construction of the box section and ramp for the North Melbourne loop in the Flinders Street Yard. • continued replacement of Burnley stabl ng sidings. (c) between Spencer Street Station and Adderley Street • completion of the re-arrangement of surface trackwork, overhead power lines and signalling in the Spencer Street yard to provide for connections to the Burnley and Caulfield tunnels. · (d) Dudley Street and Railway Place • commencement of construction of box tunnel sections beneath Dudley Street from the boundary of railway property at Railway Place to the previously constructed tunnel under the railway yards for the North Melbourne loop tunnel. by Watts Construction Division Pty Ltd • completion of the final closure of the access opening in the box tunnel of the Caulfield­ Sandringham loop in Flinders Street East Yards. • completion of the closure of the access opening in the Caulfield-Sandringham loop box tunnel at Adderley Street by Newsteel Pty Ltd • completion of fabrication of steelwork for Jolimont Road Bridge for the Clifton Hill loop. by various Government instrumentalities • continued re locations of various services beneath Dudley Street.

SERVICES IN TUNNELS AND APPROACHES by Eglo Engineering Pty Ltd • continued installation of fire marns, compressed air pipework and support brackets for tunnel services in the Clifton Hill loop/City Circle and North Melbourne loop tunnels. • continued installation of permanent de-watering pumps in various locations.

7 by Victorian Railways Board • further installation of overhead traction system in the Clifton Hill loop/City Circle tunnel. • further signalling installation in the Clifton Hill loop/City Circle tunneL byHumesLtd • completion of manufacture of precast concrete double sleepers for track in the Clifton Hill loop/ City Circle and North Melbourne loop tunnels by Empire Rubber {Australia) Pty Ltd • completion of manufacture of rubber bearing pads and spacer blocks tor concrete sleepers for track in the Clilton Hill loop/City Circle and North Melbourne loop tunnels. by Pandrol Australia Pty Ltd • completion of manufacture of rail fixing plates and clips for the Clilton Hill loop/City Circle and North Melbourne loop tunnels. by Codelfa Construction Pty Ltd and Cogefar Construction Pty Ltd Joint Venture • completion of installation of concrete track bed and rails in Clifton Hill loop/City Circle tunnel and in the constructed section (70%) of the North Melbourne loop tunnel. by Matthew Hall Mechanical Services (Pty) Ltd • completion of installation of electrical services in the Burnley loop tunnel. • completion of installation of electrical services in the Caultield-Sandrmgham loop tunneL

• commencement of installation of electrical services 1n the Clifton Hillloop/Ctty Circle tunnel. • completion of the installation of acoustic treatment in the Burnley and Caultield-Sandringham loop tunnels. • commencement of the installation of acoustic treatment in the Clifton Hill loop/City Circle and North Melbourne loop tunnels. by G.E.C. Australia Ltd • completion of installation of signalling in the Burnley and Caultield-Sandringham loop tunnels. • commencement of the equipping of signalling relay rooms for Clifton Hill loop/City Circle and North Melbourne loop in the three underground stattons.

ANCILLARY WORKS by Watts Construction Division Pty Ltd • completion of the fan superstructure for the Caulfield-Sandringham loop at Jolimont. by A. J. Galvin Pty Ltd as nominated sub-contractor to C.M.T.-Construction of Metropolitan Tunnels • completion of construction of the Queen Street ventilation shaft surface structure and completion of installation of architectural finishes. by Nicholls Engineers and Constructors Pty Ltd • completion of the diversion of a stormwater drain in Dudley Street to enable the construction of a section of the North Melbourne loop box tunnel. by De Havilland Constructions Pty Ltd • commencement of the underpinning of the foundations of Dudley Street Bridge to enable the construction of a section of the North Melbourne loop tunnel adjacent. by Leeds and Northrup Australia Pty Ltd • completion of manufacture, installation and commissioning of a computerised system for remote control and monitoring of loop electrical and mechanical services associated with Museum Station, Burnley and Caulfield-Sandringham tunnels and Metropolitan Train Control Centre (METROL). • continuation of manufacture of system hardware tor control and monttoring of electrical and mechanical services associated with remaining tunnels and underground stations.

8 by L. M. Ericsson Pty Ltd • continuation of the design and manufacture of a Dual Computer Controlled Train Describer System to be operated from METROL and completion of installation of computer hardware. by Mitsui and Co. (Australia) L td • completion of installation and commissioning of stand by generators for Museum Station and METROL • continuation of the design and manufacture of stand by generators for Parliament and Flagstaff Stations. by G. E. C. Australia Ltd • continuation of manufacture of a system to display train information on visual display units for Parliament, Flagstaff and North Melbourne Stations, and completion of installation of these units at Museum Station (except west booking hall), and at Spencer Street and Flinders Street Stations. by Philips Electronic Systems (Vision and Sound) • completion of manufacture and installation of a closed circuit television and public address system in Museum Station (except west booking hall) and METROL • continuation of manufacture of a closed circuit television and public address system for Parliament and Flagstaff Stations. by Delairco Bartrol Pty Ltd • completion of manufacture and installation of ticket vending machines 1n Museum Station (except west booking hall). by Melco Australia Pty Ltd • completion of manufacture and installation of uninterruptible power supply systems at Museum Station, METROL, and for electrical sub-stations at Wellington Parade and Adderley Street • continuation of the design and manufacture of uninterruptible power supply systems for Parliament and Flagstaff Stations by Eagle and Globe Steel Ltd • completion of manufacture and installation of large diameter fans for tunnels ventilation at Jolimont for the Caulfield-Sandringham tunnel and at Treasury Gardens, Commonwealth Centre and at Queen Street for all tunnels and at Adderley Street for the Burnley, Caulfield-Sandringham and Clifton Hill loop/City Circle tunnels. • completion of manufacture of the fan to be installed in the North Melbourne loop tunnel services complex at Adderley Street. by Locus System Engineering • completion of installation of clocks and next-train displays at Museum Station (except west booking hall) and next-train displays at Spencer Street and Richmond Stations. • continuation of manufacture and supply of next-train displays and clocks for Parliament and Flagstaff Stat1ons and next-train displays at Flinders Street Station. by Spiroduct (VIe) Pty Ltd • completion of manufacture and supply of acoustic pods for the Caulfield-Sandringham loop and Clifton Hill loop/City C1rcle tunnels and continuation of manufacture and supply of acoustic pods for the North Melbourne loop tunnel

9 Construction Status at 30th June 1981 The status of the work as at 30th June 1981 was as follows­ STRUCTURAL WORKS Clifton Hill loop/City Circle; Burnley loop; Caulfield-Sandringham loop • all structural work for ramps, box section tunnels and circular tunnels-completed. North Melbourne loop • ground support. excavation and concreting tor ramp and box section tunnel connection from Flinders Street Station to circular tunnel at the railway boundary at Wellington Parade south- 30% completed. • circular tunnel from the railway boundary at Wellington Parade south to Dudley Street­ completed. • ground support and excavation for box section tunnel across Dudley Street- 25% completed. • box section tunnels and ramps for the eastern and western branch connections with existing tracks at North Melbourne-completed. Parliament Station • all loop platform tunnels and platforms-completed.

• lower and upper relay rooms, lower and upper platform cross~passages-structures completed • escalator declines, machine rooms and concourses at platform levels-structures completed. • secondary structural work in the north and south escalator tunnels and platform concourses- completed. • north and south draught relief shafts-excavated and 96% concrete lined. • excavation and concreting for the south booking hall under Spring Street-completed. • architectural finishes and station services for south booking hall, south escalator declines, concourses and all platforms- 40% completed. • underground service structures adjacent to south booking hall-completed; and light well-70% completed. • excavation and concreting for the north booking hall structure-50% completed. • manufacture and installation of escalators and lifts-40% completed. Museum Station • main station structure including east and north booking halls and east draught relief structure- completed. • west draught relief shaft. excavation and concreting-completed. • west booking hall structure, excavation and concreting-completed. • escalators and lifts in main station area, east and north booking halls-completed. • main·station architectural finishes and services-completed • west booking hall architectural finishes and services-1 0% completed. • west booking hall escalators-60% completed. Flagstaff Station • main station structure including platform tunnels and concourses. escalator tunnels and draught relief shafts below ground -completed. • diversion of all major underground services around the perimeter of the booking hall­ completed. • excavation of the north and south booking halls-90% completed. • architectural finishes and station services for platforms. escalator declines and concourses- 15% completed. • escalators and lifts in main station area-50% completed.

10 Overpass Structure • overpass structure for elevated tracks-completed.

SERVICES IN TUNNELS AND APPROACHES • lire mains, compressed air mains and support brackets for tunnels services-completed in Burnley loop, Caulfield-Sandringham loop and Clifton Hill loop/City Circle tunnels and approaches, and 90% completed in the North Melbourne loop tunnel. • installation of permanent de-watering pumps at Jolimont. Treasury Gardens, Commonwealth Centre, Elizabeth Street, Spencer Street Yards and Wellington Parade-completed. • track system in Burnley, Caulfield-Sandringham loops-completed; in Clifton Hill loop/City Circle- completed except for surface connections; in North Melbourne loop-70% completed. • manufacture of sleepers, rubber bearing pads and other components for rail installation in the remainder of the North Melbourne loop tunnel-completed. • electrical cabling in the Caulfield-Sandringham loop tunnel-completed. • mstallation of signalling and equipping of associated relay rooms for the Caulfield-Sandringham loop completed. • commissioning of signalling equipment in the Burnley and Caulfield-Sandringham loop tunnels -completed. • manufacture and delivery of acoustic pods for all tunnels-98% completed. • testing of signalling equipment in the Burnley and Caulfield-Sandringham loop tunnels­ completed.

Ancillary Works • ventilation shaft and cross passages and above-ground structure at Treasury Gardens- completed. • ventilation shaft and above-ground structure at Queen Street-completed. • ventilation shaft and above-ground structure at Commonwealth Centre-completed. • construction of fan superstructure on Burnley, Caulfield-Sandringham and Clifton Hill loop/City Circle box tunnels at Adderley Street-completed. • construction of fan superstructure on Caulfield-Sandringham box tunnel at Jolimont­ completed. • new overhead structures to suit altered and additional trackwork tor loop operations at Spencer Street-completed. • underpinning of railway bridge over Dudley Street-90% completed. • installation of tunnel ventilation fans at Jolimont tor Caulfield-Sandringham box tunnel; at Treasury Gardens, Commonwealth Centre and Queen Street for all tunnels and at Adderley Street for the Clifton Hill loop/City Circle and the Burnley and Caulfield-Sandringham loops­ completed. • manufacture of fan for North Melbourne loop in the Adderley Street services complex­ completed. • manufacture and installation of the control and monitoring system for tunnel and station equipment-SS% completed. • installation of stand by generators at Museum Station and at METROL -completed. • manufacture of stand by generators for Parliament and Flagstaff Stations-50% completed. • installation of uninterruptible power supply system for Museum Station, METROL and electrical sub-stations at Wellington Parade and Adderley Street-completed. • manufacture and installation of closed circuit television and public address systems at Museum Station and METROL-completed. • manufacture of closed circuit television and public address equipment for Parliament and Flagstaff Stations-commenced.

11 • installation of passenger information display monitors and control equipment for Museum Station (except for west booking hall), Flinders Street Station, Spencer Street Station and Richmond Station-completed. • train describer system at METROL -computer installation continued. • manufacture and installation of clocks and next-train displays at all underground stations-50% completed: next-train display systems at Flinders Street/Princes Bridge and Spencer Street stations -completed. • fabrication for steelwork for bridge over Jolimont Road for Clifton Hill loop-completed. • new overhead structures to suit altered and additional trackwork for future loop operations in Flinders Street East Yard-600,\l completed

Construction Program 1981 /82 The work proposed during 1981/82 is as follows-

UNDERGROUND PORTION

Eastern Section Parliament Station • complete installation of architectural finishes on platforms, concourses, escalator tunnels and south booking hall. • complete the north booking hall structure and commence installation of architectual finishes • continue installation of electrical and mechanical services throughout the station. • continue construction of entrances to the south booking hall.

• continue installation of escalators and lifts. • commence restoration works, planting and landscaping around the south booking hall entrances and windows.

Central Section Museum Station • complete installation of architectural finishes and services in west booking hall. • complete installation and commission 3 escalators in the west booking hall.

Western Section Flagstaff Station • continue construction of north and south entrances and booking halls. • continue installation of architectural finishes, electrical and mechanical services throughout the station. • continue installation of escalators and lifts. • complete ground level works for the west draught relief shaft. Tunnel Structures • complete underpinning the Dudley Street railway bridge. • continue relocation of services below Dudley Street • continue construction of box tunnel below and adjacent to Dudley Street to complete the North Melbourne loop tunnel.

12 APPROACHES FROM SURFACE TRACKS TO UNDERSTREET TUNNELS • continue construction of the box section and ramp for the North Melbourne loop in Flinders Street East Yard. • continue the replacement of Burnley stabling sidings in Flinders Street East Yard. • install steelwork for the bridge at Jolimont Road for Clifton Hill loop. • continue final surface track work and overhead traction systems into ramps at Spencer Street, Flinders Street East Yard and Jolimont for the Clition Hill loop/City Circle. • continue re-arrangement of trackwork, overhead wiring and signalling for the North Melbourne loop in the Flinders Street East Yard. • continue installation of signalling at METROL relay room, Flinders Street East Yard.

SERVICES IN TUNNELS AND APPROACHES • continue installation of track bed and rail in the North Melbourne loop tunnels and ramps. • complete installation of overhead traction system in Clifton Hill loop/City Circle tunnel and continue installation in the North Melbourne loop tunnel. • complete installation of cabling for electrical services, signalling and communications in the Clifton Hill loop/City Circle tunnel and continue Installation of cabling in the North Melbourne loop tunnel. • complete installation of acoustic pods and panels in the Clition Hill loop/City Circle tunnel and continue installation of acoustic pods and panels in the North Melbourne loop tunnel. • continue installation of signals in the Clifton Hill loop/City Circle tunnel and equipping of associated relay rooms.

Ancillary Works • complete manufacture of standby generator for Parliament Station and continue manufacture of standby generator for Flagstaff Station. • complete manufacture of uninterruptible power supply system for Parliament Station and continue manufacture of uninterruptible power supply system for Flagstaff Station. • continue installation of control and monitoring system at various locations. • commission and bring into operation the electrical, mechanical and control systems tor the Clifton Hill loop/City Circle tunnel. • continue manufacture and Installation of closed circuit television and public address systems at underground stations. • continue design of software tor the train describer system, and commission first two (out of five) stages of the system. • commence construction of ventilation fan superstructure and the emergency exit at Adderley Street shaft in North Melbourne loop tunnel.

13 Safety As the project approaches completion the magnitude of the combined forces used to perform the task becomes more apparent. This is evident at the quarterly meetings of the Joint Safety Council. Chaired by Sir Robert Roscoe, K.B.E., Authority Chairman, it comprises top management officers from VicRail. Railway Construction and Property Board, the Authority itself, contractors including the John Holland group, Codelfa-Cogefar, Dillingham Australia, Otis Elevators and others, and the Principal Consultants. The Joint Safety Council is unique. it has pioneered the work of bringing together in a JOint safety program a broad and diverse group of participating bodies each of high standing in the community. The workings of the Safety Working Committee at site top managerial level has been a source of benefit to the participating groups themselves as well as the project as a whole. The Committee conducts monthly meetings and is responsible to the Joint Safety Council.

Control Program The accident control program initiated in 1975. directed towards prevention of accidents, continued to produce pleasing results, and in the 1980/81 year there was no injury of a permanent disabling nature. There have been no fatal accidents on the project during the past five years. The frequency rate of injuries per million man hours worked has shown a steady decline over recent years-232, 188, 17 4, 125, 121, and 107 in the year under review. The results can be attributed largely to the joint co-operation of all contractors and sub-contractors and their personnel engaged in various phases of the finishing works. Two main committee structures are maintained. The Loop Operating Safety Committee is responsible for the overview of the safe design for operation of the underground rail loop system. The Joint Safety Council is responsible for the review of performance in accident prevention and the development of an effective safety program. The program is co-ordinated through regular meetings of Safety Officers engaged on the project. There is a Safety Officer for each contract. lt IS at these meetings that fundamental problems of co-ordination and co-operation are developed. With the transition of the type of work being undertaken on the project from mining and tunnelling to structures and structural finishes the number and complexity of contracts increased. There were 32 separate prime contractors engaged in work during the year and of these 17 had no lost time through injury. A contribution to this achievement was the participation of Trades Union representatives in liaison with the supervisory staff of the work force in regui'ar inspections and consultations The time lost due to work injuries for the year represented 1.3% of the ava1lable work time.

Industrial Relations Industrial disputes resulted in the loss of 3.17% of total work time available compared with 2.44% in 1979/80, 3.2% in 1978179 and 3.3% in 1977/78. This time loss does not indicate total disruption caused by black bans which in themselves do not involve direct loss of time but cause delays in work progress.

14 Property Development Museum Station Area In its 1979180 Report the Authority advised having requested property consultants to undertake a review of earlier proposals for redevelopment of the Museum Station Area and that an up-to-date market study had been completed since the end of that year. Earlier proposals for an integrated development had included a large department store of approximately 36,000 square metres, a junior department store, a multi-level shopping mall, entertainment and recreation facilities, parking for 1,500 shoppers' cars and a 50 storey office tower. These proposals were found to be no longer viable for 1980 market conditions.

Following receipt of the property consultants' report the Authority commissioned architects Bates Smart & McCutcheon Ply Ltd, and Messrs Peddle Thorp and Walker in December 1980 to prepare conceptual plans and models for a development based on the new assessment of the potential of the site. The architectural brief was prepared by the Authority's specialist consultants to ensure its relevance to current market needs and the architects were requested to draw on the resources of these consultants during the planning process In May 1981 the architects presented their concepts to the Authority for appraisal and selection. Both concepts revealed great imagination and regard for the need to devise an economically viable development which would act as a catalyst for the future development of a section of the Central Business District long since neglected and somewhat depressed.

Feasibility studies and cash flow projections were well in hand by the close of the year and discussions had been initiated with selected organizations and institutions considered most likely to be interested in participation should the conceptual plans become the basis for early redevelopment. Acquisition of the properties within the Area owned by the Melbourne City Council had been provided for in the May 1980 amendment to the Authority's Act and negotiations begun in June of that year were still being pursued with the Council at the close of the current year. Notice to Treat in respect of the acquisition of St. Franc is Street was served on owners of adjoining properties during the year although possession of the street is not expected to be taken until redevelopment of the area commences.

Flagstaff Station Area During the year the Authority advertised widely for registration of interests by parties with the financial capacity and expertise to develop this area in exchange for a long term lease. A good response was received and preliminary interviews were held with registrants before preparation of a brief for those selected to submit firm proposals. Since the end of the year the second step in this project has been taken with the issue of the Developer's Brief and related legal documents to the parties selected for submission of further proposals on a competitive basis.

15 Information Services Information activities during the year continued a service based on the experience of preceding years. They included, inter alia, production of publications for public and student information. and for distribution at the Royal Melbourne Show and other locations. An illustrated review of current activities was primarily directed to the Authority's Inscribed Stockholders and provided a mid-year update of the construction program Progress was made in the production of a third documentary film; photographic displays were mounted in selected locations; special tours were arranged for professional and technical groups, local and from abroad; lectures and talks were provided in response to continuing requests; personal, mail and telephone enquiries were continuously handled from students and the general public; and research material, statistical data, information articles and editorial compilations were prepared to assist-in their own respective presentations-the news media and trade, technical, financial and general interest publications. The 1980/81 information coverage extended the activity of a decade during which a significant number of special publications were produced; two documentary films which were made received extensive screening on the commercial theatre circuit, television. and at special interest, general interest and educational levels in Australia and overseas; "open days" were arranged, as the opportunity arose, to enable members of the public to view construction work below ground level; visual presentations were installed at various venues including a number at Parliament House; speakers were made available; and effective liaison was maintained with the Media, in line with the policy followed from the outset by the Authority that factual information should be readily available in the public domain. A special characteristic of the 1980/81 year was the accelerated public interest on the Authority's activities. inspired by the visit of Her Majesty the Queen and H.RH Prince Phi lip in May 1980, the hand­ over ceremony by His Excellency the Governor in November 1980, and the running of passenger trains by VicRail in January 1981. A marked and lively spirit of enquiry was engendered in the community, with special concentration of interest on the progress of the two further underground stations and loops under construction.

16 Finance The hardening monetary conditions featured in the Authority's Reports of 1978/79 and 1979/80 persisted prominently throughout the 1980/81 year, with mounting pressures on Interest rates as the year progressed, to levels unprecedented in Australia. With the level of yields on Commonwealth Government securities in the secondary market running consistently ahead of official quotations under the tap system, increasing recourse was made by the Commonwealth to short dated Treasury Note offerings put out to tender on a weekly basis, offering yields higher than those quoted daily by the Reserve Bank for medium term securities. Taken in conjunction with the partial deregulation of trading bank interest rates, and development of cash trusts, investment preferences moved strongly to the ultra-short end of the market in increasing volume. Concurrently, in the corporate field, a growing market developed in short-dated promissory notes which, as a corollary, attracted a growing number of semi-government bodies prepared to pay market rates for temporary funds. This contrasted with the fixed rates attaching to formal offerings subject to Loan Council conditions. Bank bills continued to substitute for bank overdraft and term loans, at prices reported in some instances to exceed 20% on a yield basis. Multiple monetary factors of varying political economic and social import combined to give recognition to widening inflationary expectations which are now openly reflected in investor preferences for short term securities. Th1s investor preference for short term securities goes to the root of the basic principles of capital financ1ng. The Federal Government's continuing reliance on Treasury Notes and the recourse of corporate borrowers to short dated bills and promissory notes are precedents which statutory bodies might find difficult to 1gnore but which cannot be emulated without protection and appraisal of the problems involved. What is needed now is greater financial cohesion between State instrumentalities in the deployment of working funds and an adequately maintained secondary market for sellers and buyers of semi­ government issues to accommodate the requirement of investors seeking liquidity protection in case of need. Since the year's end some progress towards the establishment of a secondary market has been made with the act1on taken by the State Bank to facilitate the sale by investors of limited amounts of semi-government securities.

Institutional Investment it is a matter of concern that abolition or erosion of the 30/20 taxation rule affecting superannuation funds, and/or any further reduction in the percentage of Government Securities to total depositors' funds required to be held by savings banks, would make it more difficult for semi-government authorities to raise funds without adding to the pressure on interest rates.

Loans The Authority, supported by major underwriters and aided by a higher level of semi government interest rates than had previously prevailed, was able to fill its loan allocation partly by public loan issue and partly by private placements. Borrowings by the Authority in 1980/81 included $75,307,563 by way of lnscnbed Stock of which $36,197,500 was raised in public issues and the remainder by private subscnption. Of the loan allocation $18,307,563 was to replace stock which matured during the year. The Inscribed Stock applied for and that paid up during the year, and the amounts of Inscribed Stock outstanding as at 30th June 1981 at the various interest rates applicable thereto, are shown in the following table.

Applied for Paid up during during Outstanding Rate%P.A. 1980/81 1980/81 at30/6/81 s s s 13.9 14,114,263 14,114,263 14,114,263 13.7 11,397,000 11,397,000 11,397,000 13.4 515,000 515,000 515,000 13.2 4,760,800 4,760,800 4,736,184 13.0 75,000 75,000 75,000 126 5,468,500 5,468,500 5,534,972 12.5 2,293,100 2,293,100 2,293,100

17 Applied for Paid up during during Outstanding Rate%P.A. 1980/81 1980/81 at30/6/81 s s s 12.4 483,900 483,900 483,900 12.3 453,100 913,170 2,303,700 12.2 157,030 22,399,400 12.1 35,744,400 35,744,400 35,744,400 11.2 500,000 11.1 89,500 11.0 13,341,624 10.9 7,990,200 10.8 18,578,800 10.7 32,477,439 10.6 14,561,000 10.5 33,660,829 10.4 25,641,000 10.35 612,000 10.3 13,792,700 9.9 573,064 9.85 5,500,500 9.7 1,300,000 9.6 3,500,000 9.5 2,279,000 9.4 5,522,000 9.3 39,473,070 8.9 1,020,000 8.7 4,990,000 7.4 10,648,883 7.3 1,629,350 7.1 3,010,000 7.0 41,900 6.9 570,000 6.6 50,000 6.4 6,816,372 6.3 980,000 6.2 3,070,000

$75,305,063 S7 5,922,163 $351,816,150

Other borrowings of the Authority at the 30th June, 1981 included an advance from the State Government's Works and Services Account of $1,946,97 4, short term advances under Section 20 of the Melbourne Underground Rail Loop Act, $6,900,000.

The Inscribed Stock outstanding at the 30th June, 1981, matures as follows: Year Ending S Year Ending s June 1982 9,723,489 Brought forward 341 '7 43,290 3 26,970,7 41 June 1995 2,753,143 4 78,457,100 6 804,517 5 52,981,134 7 224,128 6 38,178,303 8 109,072 7 14,689,318 2005 250,000 8 38,741,260 7 250,000 9 18,094,734 8 150,000 1990 7,106,508 11 100,000 1 23,991,987 12 1,550,000 2 16,032,525 13 2,300,000 3 9,295, 725 14 582,000 4 7,480,466 16 500,000 18 500,000

Carried forward $341 '7 43,290 S351 ,816,150

18 Temporary Financial Accommodation The Authority continued to enjoy substantial stand by facilities with banks. No recourse to the standby arrangements was necessary during the year.

Investment of Unused Funds The has authorised the Authority to invest in a wide range of securities, any moneys held by it, which are not part of any sinking fund provided by the Authority for the purpose of redeeming loans, and are not for the time being required for the purpose of its Act. However, within the range of authorised investments, the Authority has continued to invest temporarily funds which are not immediately required, mainly with Inscribed Stockholders of the Authority or their affiliated "official market" companies.

Treasurer's Determination ("Loan Redemption Payments") The Treasurer determined that the amount required to be paid to the Authority to meet loan redemption payments and interest was $35,193,151. In terms of the Act the amounts required to be contributed by the City of Melbourne, the Melbourne & Metropolitan Board of Works, the Victorian Railways Board and the Consolidated Fund were as follows- City of Melbourne $3,483,000 Melbourne & Metropolitan Board of Works 5,224,500 Victorian Railways Board 1,949,673 Consolidated Fund 24,535,978 The City of Melbourne paid $3,334,000 leaving $149,000 which is still to be paid. Interest earned by the Authority is deducted from interest payable by it in the calculation of the "Loan Redemption Payments". No amount was required to be paid in the year to the Authority for the purpose of defraying administrative expenses. The amounts payable by the City of Melbourne and the Melbourne and Metropolitan Board of Works as their contribution to the Authority's "Loan Redemption Payments" represented 10% and 15% respectively of that part of the Treasurer's Determination which related to the construction of the Loop, namely $34,830,000. The City of Melbourne and the Melbourne and Metropolitan Board of Works are not required to contribute to "Loan Redemption Payments" which relate to loans raised for redevelopment of land no longer required for the construction of the Loop or to finance the purchase of land to the south of the Museum Station site fronting Elizabeth Street, Little Lonsdale Street and St. Franc is Street North acquired for redevelopment. This part of the "Loan Redemption Payments" ($363,151 for the year) is payable solely from the Consolidated Fund.

Proposed Borrowings for 1981 /82 For 1981/82 the Authority has been authorised to borrow $63,553,350 by way of issues of Inscribed Stock or Debentures, and as of 30th of September 1981 it has raised (or has applications for) $27,573,800 of that amount. Of the year's allocation $8,553,350 is required to replace maturing loans and $55,000,000 is for new works.

Expenditure The Authority's expenditure for the year on Loop works, other fixed assets and administrative and public loan expenses amounted to $54,247,843. Total Expenditure to date for the same items is $370,514,357. Interest payable, less interest receivable, amounted to $34,533,287 for the year and totals $118,196,254to the 30th June, 1981.

Proposed Expenditure 1981 /82 The expenditure proposed by the Authority in 1981182 on loop works and administrative expenses amounts to $52.7 million. Interest and redemption payments for which loan allocation is not provided are expected to total an additional $43.81 million.

19 Revised Construction Cost The revised construction cost estimate of the basic plan for the construction of the Loop adopted by the Authority in 1972 (then estimated as $117.23 million at last quarter 1971 prices) is $2794 million updated to June 1981 prices. This estimate and the earlier estimate exclude land acquisition, signalling and communications, and administrative and service costs including consultancy fees. Within the provisions of the Melbourne Underground Rail Loop Act, as amended, various changes have been made progressively (as previously reported) to the scope of the project which was adopted in 1972. The cost of these changes and the exclusions stated above (but not including the cost of land acquired specifically for redevelopment) is currently estimated at $166.68 million. On this basis the total estimate as updated to June 1981 prices is $446.08 million.

Acknowledgements The work of the Authority has been valuably assisted by people and organisations conscious of the importance of the project for the future of metropolitan transport and the development of the central business district of Melbourne. Warm appreciation is expressed to the Minister of Transport, Hon. Robert Maclellan, M.L.A., and the Director and Officers of the Ministry of Transport. There has always been effective liaison between the Authority and VicRail and particular gratitude is expressed to the Chairman and Members of the Board for the manner in which the transfer of Museum Station and two loop tunnels was effected in November 1980. Thanks are also extended to the Hon. R. J. Ha mer, E. D., and the Premier, Treasurer and the Members of Parliament, and to the many Departments and Authorities with whom close contact has been maintained in day to day operations. Particular mention is made of the Melbourne and Metropolitan Board of Works, the Railway Construction and Property Board, the Public Works Department and the Melbourne City Council. Financing the project is the responsibility of the Authority. Valuable assistance 1n meeting financial requirements came from banks, the money market and investing institutions. financiers, underwriters, and members of the community who supported the Authority's public issue. Throughout the year all sections of the Media gave continuing coverage to the progress of Loop work in a fair, balanced and informed manner. Appreciation is expressed to the Contractors in many phases of the construction operation and to their members of the work force. The contribution of the Principal Consultants, John Conneii-Mott, Hay & Anderson, Hatch, Jacobs; their sub-consultants; Property Consultants. George J. Connor & Associates Pty Ltd; and Officers of the Authority, the majority of whom have formed the administrative structure since the inaugural years, and other members of the staff is acknowledged with sincere appreciation.

20 Statement of Financial Position As at 30th June, 1980 As at 30th June, 1981 $ $ $ $ Fixed Assets-See Note 1 295,062,564 Loop Development Account- See Note 2 349,172,741 138,108 Plant 138,108 90,871 Office Furniture, Fittings and Equipment 97,011 6,969 Motor Vehicle 6,969 Land Acquisitions and Expenses 6,556,564 -Section 30A 6,677,500 14,411,438 -Other 14,422,028 21 ,099,528

316,266,51 4 370,514,357

Investments-Inscribed Stock. Fixed Deposits and Bonds 2,553,157 Sinking Fund-See Note 5 3,974,489 14,531 Staff Retirement Fund 12,391

2,567,688 3,986,880

Current Assets 5,172,500 Investments-Short Term 412,000 131,847 Accrued Interest Receivable 70,737 198,992 Prepayments 200,175 Arrears of Contributions-City of Melbourne 149,000

5,503,339 831,912

Other Assets Recoverable Charges-Net Interest 5,978,206 Payable- See Note 3 7,427,432

330,315,747 382,760,581

Less Current Liabilities Bank Overdraft less Cash 1,225,388 at Bank and on Hand 1,226,562 13,000,000 Short Term Advances 6,900,000 572,600 Inscribed Stock Applications 4,156,077 Sundry Creditors 2,061,223 6,026,098 Accrued Interest Payable 8,205,420 25,000 Contractors' Deposits 23,000

25,005,163 18,416,205 Reserve 14,531 Staff Retirement Fund 12,391

25,019,694 18,428,596

$305,296,053 $364,331,985

SOURCE OF FUNDS

Contributions 13,321,318 Victorian Railways Board 15,270,991 9,520,123 City of Melbourne 13,003,123 13,039,624 Melbourne and Metropolitan Board of Works 18,264,124 49,557,200 Consolidated Fund 74,093,178

85,438,265 120,631,416 Less Applied to Net Interest Paid­ 77,684,761 SeeNote 3 110,768,822

Contributions applied for Capital, Sinking Fund and Loan Reduction purposes­ 7,753,504 SeeNote4 9,862,594 404,413 Earnings on Sinking Fund Investments 706,447

Loans 295,181,620 Secured bY Inscribed Stock 351,816,150 1,956,516 Works and Services Account 1,946,794

297,138,136 353,762,944

$305,296,053 $364,331 ,985

21 Statement of Financial Transactions for the year ended 30th June, 1981

$ $ Funds available to the Authority­ Contrlbutions- Victorian Railways Board 1,949,673 City of Melbourne 3,483,000 Melbourne & Metropolitan Board of Works 5,224,500 Consolidated Fund 24,535,978

35,193,151

Borrowings-Inscribed Stock 75,922,163

Decrease in Current Assets 4,671,427 Earnings on Sinking Fund and Staff Retirement Investments 299,894 Reduction in Advances to Contracts 468,101

-~-~~- $116,554,736

---~---

These Funds were applied as follows­

Capital Expenditure Works 43,944,408 Consultancy 6,407,713 Insurance 2,570,122 Property Expenditure 164,639

53,086,882 Public Loan Expenses 875,267 Administrative Expenses 753,795 Loans Interest- net 34,533,287 Repayments-Inscribed Stock and Works and Services Account 19,297,355 53,830,642 Decrease in Current Liabilities 6,588,958

Increase in Investments and Interest (including contribution of $1,119,298 to Sinking Fund) 1,419,192 -·--··-

$116,554,736

22 Notes to and forming part of the Accounts for the year ended 30th June, 1981 The accounts are prepared on the basis of historical cost.

Year Ended Year Ended 30th June, 30th June, 1980 1981 $ $ Note 1 Fixed Assets are shown at cost. No provision is made for Depreciation. Note2 Loop Development Account includes the cost (as certified by the Authority's Principal Consultants) of that part of the Loop now vested in the Victorian Railways Board pursuant to Section 41 (1) viz $1 22,922,000, advances to contractors on account of future works of $2.51 million, administrative expenses of $5.84 million and public loan expenses of $2.49 million. The administrative expenses for the year were as follows­ 404,303 Salaries and Allowances 457,123 444.395 Other Administrative Expenses 296,672 $848,698 $753,795 No provision has been made for the value of work which may have been done by contractors but which had not been certified by the Authority's Consultants (as Engineer under the contracts) as at 30th June. 1981. Note3 Interest The net expenditure for the year was as follows­ 27,343,305 Payable 35,832,332 618,623 Less Receivable 1,299,045 26,724,682 34,533,287 25,314,904 Less Recovered through contributions 33,084,061 $1,409,778 $1,449,226

Note4 Contributions applied for capital and loan reduction purposes were- 821,600 For Contributions to Sinking Fund 1,119,298 965,676 For Loan Reductions 989,792 $1,787,276 $2,109,090

NoteS Sinking Fund 821,600 Contribution 1,119,298 166,018 Interest Received 302,034 $987,618 $1,421,332

W. L R. DANIELS, Secretary. Auditor-General's Report The books and accounts of the Melbourne Underground Rail Loop Authority for the year ended 30th June, 1981, have been audited. As stated in note 2 to the accounts. the loop development account includes an amount of $122 922 000 being the cost (as certified by the Authority's Principal Consultants) of that part of the loop which has been transferred to and is now vested in the Victorian Railways Board pursuant to Section 41 (1) of the Melbourne Underground Rail Loop Act 1970. As a result of the above-mentioned transfer, in my opinion, the fixed asset item, Loop Develop­ ment Account, in the statement of financial position, is overstated by an amount of $1 22 922 000. Except for the matter referred to above, in my opinion the statement of financial position, read in conjunction with the notes thereto, is properly drawn up so as to exhibit a true and lair view of the financial position of the Authority as at 30th June 1981 and the financial transactions of the Authority for the year ended on that date.

B. J. WALDRON, Auditor-General. 28/10/1981.

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