Est Cte C 1 Oct 1998

1 Oct 1998 Estimates C—Public Works; Housing 141 ESTIMATES COMMITTEE C hearing for two 30-minute breaks, one in the morning session and one in the afternoon session, as well as for a one-hour lunchbreak between 1.30 p.m. and Mr G. B. Fenlon (Chair) Mr V. G. Johnson 2.30 p.m., subject to any changes that the Committee Mrs J. M. Attwood Mr B. E. Laming may deem appropriate as these proceedings unfold Mrs E. A. Cunningham Mr P. G. Reeves today. I remind members of the Committee and the Minister that the time limit for questions is one minute P UBLIC WORKS; HOUSING and three minutes for answers. A bell will ring once IN A TTENDANCE 15 seconds before the end of these time limits and twice when the time limit is up. A two-minute Hon. R. E. Schwarten, Minister for Public Works extension of time may be given with the consent of and Minister for Housing the questioner. The Sessional Orders require that at Department of Public Works— least half of the time is allocated to non-Government Mr M. Grierson, Acting Director-General members. Government members and non- Government members of the Committee will take Mr T. Woodward, Director, Finance and turns in asking questions in blocks lasting Information Technology approximately 20 minutes. Mr W. Pashen, Assistant Director, Finance and Copies of the Committee's questions on notice Information Technology and the Minister's responses are available from our Ms C. Tonkin, Director, Queensland Purchasing staff here today. In accordance with the Sessional Mr L. Clarence, Group General Manager, Orders, each of the Ministers may make an opening Services and General Manager, Q-FLEET statement lasting up to five minutes. I ask the Minister to use that statement to advise the Mr B. Hunt, General Manager, SDS Committee of any changes to the Budget papers for Mr M. Smith, Group General Manager, Works his portfolio. I understand that in this case the Queensland and General Manager, Project Minister wishes to make two short statements Services relating to each section of his portfolio. Mr R. Rankin, Acting General Manager, Q-Build In relation to the media coverage of today's Department of Housing— hearings, the Committee has resolved that video coverage is allowed only during the Chairman's Ms L. A. Apelt, Acting Director-General opening address and the Minister's opening Mr I. Fulton, General Manager, Home Purchase comments. Audio coverage will be allowed at all Assistance and Financial Services times. For the benefit of Hansard, I ask advisers to Mr A. Ackfun, General Manager, ATSI Housing Ministers to identify themselves before they answer a question. Mr D. Short, Acting Assistant Director, Budget and Financial Reporting The proceedings today are similar to Parliament to the extent that the public cannot participate in the Ms J. O'Farrell, Acting Manager, Program proceedings. I remind members of the public that in Management accordance with Standing Order 195 strangers, that Mr G. Smith, General Manager, Housing is, the public, may be admitted or excluded from the Services hearing at the pleasure of the Committee. If anyone Mr J. Nelson, Acting General Manager, attending today has a mobile phone, please switch it Community Housing off while in the Chamber so as not to disrupt the proceedings. Mr D. Manzie, Acting General Manager, Property Assets Group The first item for consideration is the Estimates of expenditure for the portfolio of Public Works and Housing. The time allotted is four and a half hours. The examination will begin with the Department of Public Works, followed by the Department of The Committee commenced at 8.30 a.m. Housing. I declare the proposed expenditure for the The CHAIRMAN: I declare open this meeting Minister for Public Works and Housing to be open of Estimates Committee C. I would like to introduce for examination. The question before the Committee the members of the Committee: Julie Attwood, the is— Member for Mount Ommaney; Phil Reeves, the member for Mansfield; Liz Cunningham, the member "That the proposed expenditure be agreed for Gladstone; Vaughan Johnson, the member for to." Gregory; and Bruce Laming, the member for Minister, would you like to make a brief introductory Mooloolah. I am Gary Fenlon, the Chairman of this statement? Committee and the member for Greenslopes. Mr SCHWARTEN: Yes, I would. I am pleased The Committee will examine the proposed to be here today as the Minister for Public Works expenditure contained in the Appropriation Bill 1998 and Minister for Housing. In regard to the for the portfolios of Public Works and Housing, and Department of Public Works, the MPS reflects a Transport and Main Roads in that order. The budget of $2 billion for 1998-99, a large amount of Committee has agreed that it will suspend the which includes capital works programs on behalf of 142 Estimates C—Public Works; Housing 1 Oct 1998 client agencies. Whilst a considerable amount has which commenced in 1995-96, ensures that the been achieved in past years, I am aware that there Government continues to meet its obligations in are major challenges ahead for the department in the complying with international protocols and legislative ensuing years. The Premier has clearly stated the arrangements. The program was ended on 30 June Government's priorities for capital works and job 1998. The total program expenditure up to 30 June creation throughout the State, both of which are was $10.05m. Due to delays associated with the areas of responsibility under this department. I look cogeneration proposal for the production of forward to making a major contribution to achieving electricity and heat using energy that would the Government's targets in increased apprenticeship otherwise be wasted at 80 George Street—unrelated training and more efficiency and effective delivery of to this program but having an impact on this the Government's Capital Works Program. The building—the program has a small carryover of Department of Public Works also has key roles to $0.724m. play in service delivery to other Government With regard to asbestos management, this departments in respect of the construction and program started in 1994 as a long-term program maintenance of the State's built assets. I intend to established for the removal and management of in strengthen these roles in partnership with the situ asbestos in Government owned and occupied building industry. I would now be pleased to answer buildings. I remember that pretty well, because I any questions the Committee may have in relation to worked for Tom Burns when we started that the budget for 1998-99 for the Department of Public program. The audit carried out throughout the State Works. would make your hair stand on end, given the The CHAIRMAN: The first round of questions potentially dangerous situation that we had at that will go to non-Government members. stage. Mr LAMING: I refer to page 1-9 of the MPS Up until 30 June, we spent $10.755m on and the key performance indicators. Why is the auditing and a further $3.947m on urgent asbestos Government unable to present 100% asset data removal. The completion date of the asbestos reporting on whole-of-Government assets? management program is 30 June 1999. All buildings Mr GRIERSON: That information refers to the will have been audited for the full extent of asbestos Queensland Building Information System—QBIS. As and the estimated costs to remove asbestos or you are aware, the capital works funding was manage it should be known. The ongoing removal of devolved some years ago to client agencies. The asbestos containing materials as they deteriorate client agencies have the responsibility to submit would be addressed through maintenance or other information into that system. We are in their hands. At programs. So it is an issue and we will continue to do this stage all agencies have not responded and input it. data into that system. We are only able to report on As you know, the problem with asbestos only the information that we have, which is the capital really comes to the fore when it is interfered works that we control and that information that is with—when it is drilled, broken or whatever. There is forthcoming from other departments—Education, a lot of panic out there amongst people, especially in Health and so on. my Housing portfolio, who live in fibro houses. They Mr LAMING: In the future, is it intended that a think that that is a problem, but it is not a problem per higher percentage of performance indicators will be se until people start to hose off their super six fibro available to you? roofs or whatever else. Mr SCHWARTEN: My intention is to try to get Mr LAMING: I now refer you to footnote 6 on on top of a lot of these issues with other page 1-11 of the MPS, Program Outlays. I ask: what departments. My view is that we need to get more generated the need for the Office of State Revenue and more reporting through our central agency. That and DNR to acquire additional leased is certainly what industry is telling me. It is probably accommodation after the conclusion of its telling you the same thing. Until we get to that stage, restructuring in which it was downsized? I think we will have those sorts of problems. It is a Mr SCHWARTEN: We sold the Anzac Square priority for me in the next six or so months. building. Mr LAMING: I refer to page 1-8 and the Mr LAMING: I beg your pardon? planned performance for 1998-99.

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