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Issues Raised at the 1996 National Conference of Australian Parliamentary Public Works Committees

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Issues Raised at the 1996 National Conference of Australian Parliamentary Public Works Committees LEGISLATIVE ASSEMBLY FOR THE AUSTRALIAN CAPITAL TERRITORY ISSUES RAISED AT THE 1996 NATIONAL CONFERENCE OF AUSTRALIAN PARLIAMENTARY PUBLIC WORKS COMMITTEES REPORT NO.18 OF THE STANDING COMMITTEE ON PLANNING AND ENVIRONMENT NOVEMBER 1996 ii Resolution of appointment [by the Legislative Assembly] of the Standing Committee on Planning and Environment: [that] a Standing Committee on Planning and Environment [be established] to examine matters related to planning, land management, transport, commercial development, industrial and residential development, infrastructure and capital works, science and technology, the environment, conservation, heritage, energy and resources... [And that the committee] inquire into and report on matters referred to [it] by the Assembly or matters that are considered by the committee to be of concern to the community. Minutes of Proceedings (Third Assembly) No.1 - 9 March 1995, amended 22 June 1995 Committee Membership Mr Michael Moore MLA (Chair) Mr Trevor Kaine MLA (Deputy Chair) Ms Lucy Horodny MLA Ms Roberta McRae OAM, MLA Secretary: Mr Rod Power Assistance: Mrs Anne Munns iii TABLE OF CONTENTS 1. BACKGROUND 1 Layout of the report 1 Associated reports 2 Next Conference 2 Acknowledgment 2 2. REPORTS OF PARLIAMENTARY COMMITTEES 3 Commonwealth Public Works Committee 3 History of the Committee 3 Bipartisan manner of working 3 Referral point 3 The Committee process 3 Activity of the Committee in 1996 4 Activity of the Committee in 1995 4 Overseas travel and scrutiny of overseas projects 4 Environmental considerations 5 New South Wales Standing Committee on Public Works 5 Strands to the Committee’s activity 5 The Committee’s first inquiry and report 6 Current Committee activity 6 Power to initiate inquiries 7 Referral point 7 Queensland’s Public Works Committee 8 Future inquiries 8 The Committee process 10 South Australian Public Works Committee 10 Members and staff 10 Referral point 10 Committee activity 10 Private enterprise input into public works 12 Future inquiries 13 Tasmanian Public Works Committee 13 History of the Committee 13 Referral point 13 Membership 13 Current activity 14 Preservation of historic infrastructure 14 A.C.T. Standing Committee on Planning and Environment 15 Membership 15 Powers of the committee 15 Current inquiries 16 Committee scrutiny of public works 16 Staff 17 iv New Zealand House of Representatives: the Planning and Development Committee 17 Principal activity of a New Zealand parliamentary committee 17 Absence of a specific Public Works Committee 17 Members and staff 19 The committee system after the October elections 19 3. SUSTAINABLE RESOURCES AND THEIR INFRASTRUCTURE 20 The ACTEW model 20 Sustainable development in businesses 20 The water cycle and the investment process 21 International competition 22 Accounting systems 22 Effect on local businesses 22 4. PUBLIC WORKS IN THE A.C.T. - OVERVIEW 24 Key factors 24 Key Government agencies 24 The Capital Works Group 25 Works and Commercial Services 25 Construction and Maintenance Services [CAMMS] 26 Evaluative criteria used by the Capital Works Group 26 5. STRATEGIC ASSET MANAGEMENT IN RELATION TO CAPITAL INVESTMENT 28 Value of the A.C.T.’s built assets 28 Basis for Federal decisions on assets (prior to self-government) 28 The major problem in managing the A.C.T.’s built assets 28 Strategic capital investment planning 28 Questions to ask in justifying a project 29 Changes to bureaucratic culture 30 6. TECHNIQUES OF PROJECT DELIVERY 31 Lump sum contracts 31 Project management 32 Comparison of project management and lump sum 32 7. PRE-QUALIFICATION AND SECURITY OF PAYMENTS 34 The construction industry 34 Pre-qualification 34 Security of payments 37 8. THE LEGISLATIVE ASSEMBLY BUILDING 39 APPENDIX 1 - CONFERENCE PROGRAM 41 APPENDIX 2 - DELEGATES 43 v vi Standing Committee on Planning and Environment 1. BACKGROUND On 5-6 August 1996 the Standing Committee on Planning and Environment, on behalf of the A.C.T. Legislative Assembly, hosted the 1996 National Conference of Parliamentary Public Works Committees. The Conference was held in the Chamber of the Assembly. The following parliamentary committees were represented: • Commonwealth Public Works Committee • New South Wales Standing Committee on Public Works • Queensland Public Works Committee • South Australian Public Works Committee • South Australian Environment, Resources and Development Committee • Tasmanian Standing Committee on Public Works • Australian Capital Territory’s Standing Committee on Planning and Environment • New Zealand Planning and Development Committee. This report highlights the main points raised by speakers at the Conference. Quotations are taken from the Transcript of Proceedings of the Conference, which was authorised for publication by delegates. A copy of the Conference Program is appended to this report, as is a list of delegates. Layout of the report The second Chapter of the report summarises the activity of the parliametnary committees represented at the Conference. A great range and number of inquiries are shown to be taking place around Australia at the moment. The third Chapter of the report sets out the highlights of a key address to the Conference, made by a senior officer of A.C.T. Electricity and Water Corporation. The address stressed the need for public works to take account of environmental factors, especially the need for organsiations responsible for the design and operation of public works to adjust the very basis of their thinking to ensure natural resources are handled in a sustainable manner. The remaining Chapters contain information about the manner and nature of public works in the A.C.T. It is the view of members of the Planning and Environment 1 1996 National Conference of Australian Parliamentary Public Works Committees Committee that delegates from inter-State, and from the Commonwealth, might find useful lessons in the A.C.T.’s experience. Associated reports Information about the organisation of the Conference is contained in Report No.16 of the Planning and Environment Committee entitled Organisation of the 1996 National Conferences of Australian Parliamentary Public Works Committees and Environment Committees (September 1996). Information about the issues raised at the National Conference of Parliamentary Environment Committees - which took place in the Assembly Chamber on 6-7 August 1996 - is contained in this Committee’s Report No.17 entitled Issues Raised at the 1996 National Conference of Australian Parliamentary Environment Committees (September 1996). Next Conference The Queensland Public Works Committee offered to host the 1997 Conference of Parliamentary Public Works Committees. It was agreed to accept this invitation. Further, the New South Wales Public Works Committee expressed interest in hosting the 1998 Conference. It was noted that delegates to this Conference would have the opportunity to view capital works associated with the Olympic Games. Delegates appreciated the New South Wales offer for 1998. Acknowledgment Delegates thanked the Legislative Assembly for the A.C.T., especially the members and staff of the Standing Committee on Planning and Environment, for hosting the 1996 Conference. 2 Standing Committee on Planning and Environment 2. REPORTS OF PARLIAMENTARY COMMITTEES Commonwealth Public Works Committee Mr Andrew MP (Chairman) addressed the Conference. History of the Committee The Commonwealth Public Works Committee has a very proud history, running back to 1913, when it was first formed. It was modelled at that stage on the New South Wales Public Works Committee. It is... one of the oldest investigative committees in the Commonwealth Parliament. Bipartisan manner of working It acts in a very bipartisan manner.. because it is principally dealing with tangible issues... Being bipartisan has been something that has successfully characterised the committee over its entire history... [There is provision for] a dissenting report [and one was produced in 1995]. Referral point For the Commonwealth Public Works Committee the referral point - the point at which works become the focus of the committee - is the sum of $6m. There is a range of definitions under the Act of those Commonwealth public works that must be referred to the committee when the expenditure exceeds $6m. They can be referred to the Public Works Committee by either chamber or by the Executive Council. The Committee process After referral, sponsoring departments seeking to have the work done provide a written submission outlining the need for the work, the proposal that they are advocating, the cost and the potential of that work to generate money for the Commonwealth. Following the referral by either chamber, the committee then advertises the inquiry; calls for public submissions; and arranges inspections and a public hearing. That procedure normally takes about five or six weeks following the referral. At the public hearing, the sponsoring department and the design team appear and give evidence and are open to questions. Any other witnesses who have sought the opportunity to give evidence to the committee are able to do so. All of the evidence is recorded in Hansard. Following that process, the secretariat... prepares a draft report [which] is considered, adopted by the committee and then tabled in the Parliament. In the tabling process, which is undertaken normally by the Minister for Administrative Services or his nominee, the House agrees that it is expedient to undertake the particular work. 3 1996 National Conference of Australian
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