The Public Works Committee has undertaken an inquiry into the development of the Cairns Convention Centre. The Committee has reviewed all aspects of the development to date and considers that the Centre will provide substantial benefits to the Queensland economy through the resultant increases in tourist visits.

The Committee has been particularly pleased to see a number of key recommendations from its previous inquiry into the construction of the Brisbane Convention and Exhibition Centre applied to the development of the Cairns Centre. Specifically, the level and quality of consultation between the constructing authority and various user and community groups has been high throughout the design development. The Committee hopes that these high quality consultation procedures are maintained throughout the construction and fit out phases of this project and are applied to further public works in Queensland.

A number of recommendations have been made by the Committee in regard to furthering consultation and other matters. These include an analysis of costs associated with concurrent construction of exhibition facilities, matters in relation to the administration of design competitions and arrangements in regard to traffic movement at the Centre.

The Committee thanks those who have made submissions and appeared at its public hearing to provide evidence. In order to function effectively, the Committee depends heavily upon the quality of the information provided to it by both government and non- government organisations and interested members of the public.

Ms Judy Spence MLA Chairman

1 Introduction Cairns Convention Centre

INTRODUCTION

THE COMMITTEE

1 This Committee was established by the Public Works Committee Act 1989, and is a Standing Committee consisting of seven Members of the Legislative Assembly. Four Members are nominated by the Leader of the House and three are nominated by the Leader of the Opposition. The resultant all-party Committee adopts a non-partisan approach in the conduct of its inquiries.

2 The Committee is empowered to review any public works valued at over $2.3 million. This can be done at any stage - from planning through to completion - and can include such matters as the purchase of land, the calling of tenders, new construction, reconstruction and extensions.

3 In conducting its inquiries, the Committee may have regard to such issues as the suitability and necessity of works, the value for money achieved, the impact on the economy, community and environment and the general performance of the constructing authority. While the Committee does not inquire into all works, it aims to ensure a level of scrutiny across all departments involved in the capital works program.

TERMS OF REFERENCE

4 Pursuant to Section 18 of the Public Works Committee Act 1989, the Committee resolved to inquire into and report on the construction of the Cairns Convention Centre.

5 The establishment of a world-class Convention Centre in Cairns is intended to increase international and domestic tourism to Cairns and to provide an economic stimulus to Cairns' regional economy. The Centre will also provide a large public venue for concerts and shows.

6 This project is unique in the recent history of procurement of Queensland Government buildings in that it is the first to be designed through a design competition since the development of the Cultural Centre at South Bank Brisbane in 1978.

APPROACH TO THE INQUIRY

7 The Committee believes that in the development of public works, construction authorities should seek to maximise input from those people and organisations affected by projects. The Committee sees one of its roles as facilitating this process through providing a public forum in which community opinion can be heard.

2 Introduction Cairns Convention Centre

8 The Committee was pleased to note that the community consultation undertaken by the Administrative Services Department in regard to this project has been of a high standard. Further, many of the recommendations contained in the Committee's previous Report into the Brisbane Convention and Exhibition Centre have been applied by the Department to the Cairns Convention Centre development. The Committee hopes that public and special interest group input into the development of the Centre continues to be maximised at all stages of the construction process.

9 The Committee's inquiry also provides opportunity for public exposure of the full range of practices and procedures used by the constructing authority in the carrying out of the work. This allows the Committee to receive information to confirm that areas such as public accountability, the economic and efficient use of resources, procurement methods, and the impacts of the works have been properly addressed.

RESPONSIBILITY OF MINISTERS

10 This Report contains recommendations for action to be taken by the Government. Pursuant to Section 46 of the Public Works Committee Act 1989, a response is required in Parliament by the responsible Minister. The requirement is:

Public Works Committee Act 1989

S. 46 Where Minister to report. Where a report of the Committee recommends that a particular action be taken by the Government with respect to a matter, the appropriate responsible Minister of the Crown shall within the period of not more than three months after the report has been tabled or is deemed to have been tabled in the Legislative Assembly, or if at the expiration of that period the Legislative Assembly is not sitting, at the earliest opportunity after that period table a report in writing in the Legislative Assembly as to the action (if any) taken or proposed to be taken by the Government with respect to the recommendation of the Committee.

3 Background Cairns Convention Centre

BACKGROUND

NEED FOR INQUIRY

11 As detailed in the Introduction to this Report, the Committee takes a variety of matters into consideration in the conduct of its inquiries. Many of these also help form the basis of its decisions to inquire into particular areas or projects. In the case of the Cairns Convention Centre, the inquiry was initiated for the following reasons:

(a) To examine the method of project delivery adopted, its appropriateness to the project and the manner in which it has thus far been conducted; (b) To assess the level and sufficiency of consultation which has occurred; (c) To examine the adequacy of the design to meet the needs of the community, and (d) To provide an integrated overview of the project, its value to the State and value to the community in both social and monetary terms.

INSPECTIONS

12 In the conduct of its previous inquiry into the construction of the Brisbane Convention and Exhibition Centre the Committee inspected convention and exhibition facilities in Melbourne, Canberra and Sydney, as outlined in the Committee's Report into the construction of the Brisbane Convention and Exhibition Centre.

SUBMISSIONS AND HEARING

13 The Committee sought public submissions in relation to the development of the complex. Advertisements were placed in both state and local newspapers and resulted in eight submissions being received. A copy of the advertisement is appended to this Report (Appendix A). The submissions came from private individuals, the architectural profession, the Queensland and Commonwealth public sector, users of convention facilities and others (Appendix B).

14 After considering the submissions received, the Committee conducted a site inspection and held a public hearing on 31 March 1994. In the course of this hearing the Committee resolved to hear a number of commercially sensitive matters in-camera. A list of those who attended to provide evidence is appended to this Report (Appendix C).

15 The Committee expresses its gratitude to those who assisted it in its inquiry through making submissions and by appearing before it.

4 History of the Project Cairns Convention Centre

HISTORY OF THE PROJECT

INTRODUCTION

16 The development of a major Convention Centre in Cairns has been under consideration for a number of years. In the context of Queensland's on-going development of tourism-related infrastructure, the Cairns Convention Centre is seen as a significant element.

PREVIOUS STUDIES

17 In March 1991 a feasibility study was jointly commissioned by the Cairns City Council and Queensland Treasury. This study concluded that there was insufficient demand to justify the development of full exhibition facilities, but that a facility to cater for conventions of up to 800 should be established. The study recommended that the Centre should be aimed at the corporate and incentives segment of the convention market.

18 Subsequently, a consultant was appointed to review the feasibility study to assess the accuracy of the usage assessments on a worst case scenario basis.

19 The project proposal was then costed by the Administrative Services Department. Queensland Treasury subsequently undertook a cashflow analysis based upon the initial planning study and the revised estimates provided by the consultant and the Administrative Services Department. The assessment revealed that for a 600 delegate facility integrated into a Casino Complex the economic impact in 1990 dollars was likely to range between $59.5 million and $81.3 million per annum. Thus, the scope of the work was changed from an 800 person capacity facility to a 600 delegate facility integrated with a Casino Complex.

20 Subsequently the Cairns Casino brief was issued on 10 January 1992 and closed on 26 October 1992. The brief included an option for the construction and operation of the Convention Centre by a Casino Consortium or the provision of a cash payment in lieu. In July 1993 Cabinet accepted the Reef Consortium's Casino proposal and also endorsed the proposed procurement system for the Convention Centre as a separate Government project funded from part of the Casino Licence premium, this being an amount of $36.4 million. Subsequently, the budget for the project has been increased by $3.6 million dollars to bring the total budget to $40 million.

NEED

21 The Committee was informed, through a submission from the Queensland Tourist and Travel Corporation, that Cairns' ability to attract conventions had been limited due to

5 History of the Project Cairns Convention Centre

the lack of venues able to cater to delegate numbers exceeding 600 and that Cairns currently has only four properties that are able to cater for conventions exceeding 380 in number. The Queensland Tourist and Travel Corporation considers that the Cairns area will benefit tremendously by exploiting the opportunity to sell to new markets, both domestically and internationally, targeting conventions and meetings up to 1,000 delegates, as well as exhibitions and private functions.

22 In regard to the need for the development of a Convention Centre, the Australian Tourist Commission's 1990 research into the convention market shows that international convention delegates generate $260 million within Australia. These visitors make up only 2.2 percent of Australia's total overseas visitors but spend five times more than the average tourist. The Australian Tourist Commission study found that the average expenditure of an Australian conference delegate is $1,594 per person.

23 The full value of the convention and incentive travel market to Queensland is:

As At June 1992 $ Million International Conventions 123.5 Domestic 228.5 International/Domestic Incentive Travel 90.0 Total 442.0

24 The Committee supports the evidence presented to it that strongly highlights the importance of the convention tourism market to the Australian economy. It is apparent that the Centre's construction will also provide a number of "spin off" effects for local business and support services, as well as an increase in domestic and international transportation earnings and an increase in the level of construction activity in the region.

25 In 1991/92 tourism income generated 36.4 percent ($780 million) of Far North Queensland's estimated production value. The Queensland Tourist and Travel Corporation has stated that growth in the tourism industry has been steady but will only be maintained by continuing to diversify the tourism product and tourist infrastructure to cater to a wider spectrum of visitors, including the development of appropriate convention facilities.

26 The National Centre for Studies in Travel and Tourism in 1993 projected an average annual growth rate for visitor nights of 8.5 percent to the year 2000 and other evidence presented to the Committee shows that Cairns currently enjoys the highest percentage of international visitors in hotel rooms anywhere in Australia. The convention facility as planned is expected to provide the impetus for renewed interest by investors and

6 History of the Project Cairns Convention Centre

developers in the Cairns region. As a result, additional accommodation developments and other infrastructure will be commenced to support the new facility.

27 The Queensland Tourist and Travel Corporation has also said that "excellent" convention facilities already exist in the south-east corner of the State and will be complemented by the Brisbane Convention and Exhibition Centre. It therefore believes it is essential that a world-standard facility is located in the north of the State to ensure and maintain an even distribution of visitation and conference attendees.

THE PROCUREMENT PROCESS

28 The carriage of the project is being undertaken by a Steering Committee authorised to oversee the determination of a site, the calling of tenders and the construction of the Convention Centre. This Committee is chaired by the Director-General of the Administrative Services Department and has representatives from the Queensland Treasury, the Department of the Premier, Economic and Trade Development, the Queensland Tourist and Travel Corporation, Cairns City Council, Mulgrave Shire Council and the Cairns Tourist Industry.

29 Site selection of the "Tank Farm" was determined by the Steering Committee and approval given for four architectural firms to participate in a limited design competition. The Functional Planning Brief was approved by the Steering Committee and subsequently issued to the competitors at a joint briefing on 3 November 1993. On 12 November 1993 a further briefing was given to design competitors by representatives of the Australian Conservation Foundation, the Australian Council for the Rehabilitation of the Disabled and the Meetings Industry Association. A submission from Philip Cox Richardson Raynor and Partners was accepted on 28 January 1994.

DESIGN COMPETITION

30 It was decided in the light of experience from the Brisbane Convention and Exhibition Centre that the project design would be based upon a limited design competition. Initially publicly invited Expressions of Interest for the competition were sought. Thirty-six submissions were received and reviewed by a Review Panel which consisted of two Government representatives and two independent architects. This Panel recommended that six firms be invited to prepare designs. Subsequently four firms were selected as "being clearly superior in the context of all of the criteria".

31 Each of the four competitors was paid $25,000 upon submission of a schematic design. In addition to this, the Cairns Port Authority paid $5,000 to each of the competitors to include master planning of the adjacent Cairns Port Authority site. In part this was to enable the inclusion of planning for the development of a Convention Hotel.

7 History of the Project Cairns Convention Centre

32 At this time it was also decided that the successful architectural firm would be novated to the successful construction firm until the completion of the project.

DESIGN AND CONSTRUCT

33 The Committee has been advised that the construction will be developed through a design and construct process and that it is expected that tenders will be called in July 1994. This will be undertaken by the use of a select list tender administered by the Administrative Services Department.

8 The Centre Cairns Convention Centre

THE CENTRE

NEED AND JUSTIFICATION

34 As the Public Works Committee established in its previous inquiry into the Brisbane Convention and Exhibition Centre, surveys and other research have indicated that there has been a loss of market share by Queensland in the business tourism and convention market. From 1984 to 1990 the share has fallen from 20.8 percent to 12 percent of the total national market.

35 The development of the Cairns Convention Centre in North Queensland will assist in redressing the loss of Queensland's market share of the business tourism and convention market. The Committee was concerned, however, that there could well be a counter effect on the viability of the Brisbane Centre. However, evidence was received that the markets for the two Centres were distinct, with the Brisbane Centre focusing upon larger national conventions and the Cairns Centre establishing a niche market of smaller, upmarket "boutique" conventions.

36 The Cairns area's current population is 105,000, which is projected to grow to 160,000 by the year 2001 and to 250,000 by the year 2015. It is expected that as the local population figures increase, so will local use of the Centre. It is apparent that a number of natural advantages are present in Cairns which are able, with an adequate promotional strategy, to be utilised by the Convention Centre to ensure its success. Cairns' emphasis as a tourism venue will facilitate pre and post convention packages, thereby extending the potential economic benefits generated by the Centre.

37 A number of factors have been cited to the Committee as being significant in the establishment of the Cairns Convention Centre. These include:

Increased international and national tourism; Economic stimulus to Cairns' regional economy through the construction program, and The improvement of the level of local hotel occupancy.

38 Another factor which also impacted upon the decision to construct this facility was that Cairns has lacked a large public venue for concerts, shows and sporting activities. The Convention Centre may, in part, alleviate this lack.

39 The Committee was informed by the Mayor of Cairns that community reaction to the project was strongly supportive. It was further informed that tourism-related bodies, including the Far North Queensland Promotions Bureau, the Queensland Tourist and Travel Corporation and other national tourism organisations, had been strong advocates for the development of a dedicated convention centre in Cairns.

9 The Centre Cairns Convention Centre

40 In the course of its public hearing the Committee was presented with an argument that the project should be developed first without necessarily fully defining the target market segment which it will establish. The Committee believes that, while there is a wide public perception that the Centre is needed, full and proper market research must be an essential element.

41 In this regard the Committee is aware that planning studies for the project have been on-going since 1991 and have included a joint local and State Government feasibility study, a review by independent consultants and economic reviews by Queensland Treasury and Administrative Services Department.

42 The Committee was informed that a considerable percentage of the new Centre's business will be drawn from the international convention market and that these conventions will be relatively small in size. The Committee notes, however, the comments of the Director-General of the Administrative Services Department who stated that the Centre is most likely to attract as its primary users residents from within the State, then interstate users and finally international conventions. The Committee is surprised that a better profile of the Centre's anticipated market is not available.

43 The identification of target markets needs to be firmly established in the early stages of planning for major tourism-related facilities.

RELATIONSHIP TO OTHER FACILITIES

44 The project encompasses an area around the Cairns City Port Redevelopment and the Committee recognises the importance of the planned Convention Centre to this overall "City Port" concept. Similarly, the Committee is aware that there are also links to other major developments occurring in Cairns such as the Casino development and redevelopment of the railway site, as well as the construction of a number of new hotel facilities.

45 Cairns is embarking on development which will focus upon establishing a service city into Asia and the Pacific. It is envisaged that the area adjacent to the proposed Convention Centre will be used as both a tourism precinct and as a wharf which will service cruise ships. It is expected that by the turn of the century fifty cruise ships will visit Cairns each year.

46 During its hearings, the Committee sought information on the Centre's possible impact upon existing business and, in particular, existing convention facilities offered by hotels. In this respect the Committee was informed that while there will be some negative impact in some sectors of business, this will be far outweighed by the positive impacts associated with the expected growth in tourism numbers.

10 The Centre Cairns Convention Centre

47 The Committee also sought to establish the level of associated hotel facilities and notes that the Cairns Port Authority is planning to construct an associated Convention Centre Hotel. As mentioned, this feature was included as an extension to the original design competition by the Cairns Port Authority. Additionally, the Committee understands that a number of major international hotel chains are planning to develop new facilities in Cairns in the near future.

MARKETING

48 In evidence to the Committee the Manager of the Far North Queensland Promotions Bureau stated that the marketing strategy employed over the past five years for Cairns was aimed at the creation of an image as part of the South Pacific Region, rather than as a part of Queensland. Consequently, the Far North Queensland Promotions Bureau expects to attract convention business which would be considering the South Pacific and South East Asia rather than the "Australian" convention destinations.

49 The Committee was also informed that over the previous two years a number of conventions were turned away from Cairns due to the lack of appropriate convention facilities.

11 Funding Cairns Convention Centre

FUNDING

50 The project was funded through the Casino Licence premium of $36.4 million from the successful Casino Consortium. An additional amount of $3.6 million has since been provided.

51 The budget for the Convention Centre, as at March 1994, is:

Convention Centre Pre-Opening Expenses

Acquisition, relocations and other expenses $3,210,000 External consultants, ASD expenses and interim marketing $190,000 Pre-opening budget for Operator/Manager $2,500,000 CBD roadworks, traffic system, etc $500,000 Total $6,400,000

Convention Centre Project Budget

Total budget costs and fees $33,600,000

TOTAL BUDGET $40,000,000

12 Project Delivery Cairns Convention Centre

PROJECT DELIVERY

SITE

52 The site is approximately 18,000m2 and is leased by the Mobil Oil and Shell Australia companies from the Cairns Port Authority. The Tank Farm site comprises land bounded by Hartley, Grafton, Wharf and Sheridon Streets. The development of the Centre will involve the closure of Grafton Street between Hartley and Wharf Streets and the addition of its 5,000m2 as part of the site.

53 Initially some eight sites were considered, these being:

Trinity Wharf Central State School Munro Martin Park Civic Centre Railway Site (Spence Street Area) Railway Site (Florence Street Area) Pier Esplanade Tank Farm

54 Detailed consideration was given by the Steering Committee to three of these: the Railway Site (Florence Street Area), the Pier/Esplanade and the Tank Farm Sites. In response to a publicly advertised call for comments on the site, 37 submissions were received with the following support indicated:

The Pier 3 Tank Farm 15 Railway Site 21

Two submissions were not in favour of any of the proposed sites and four submissions did not distinguish between the Railway Site and the Tank Farm Site. A number of selection criteria for the sites were developed and ratings given. Application of these weighted ratings provided scores which resulted in the Tank Farm site being the highest scoring in all categories.

55 The Committee notes that proximity of the site of a convention centre to major hotels is a key determinant of a centre's success and that the determination of the size of this Centre was determined primarily by the quantum of available funds rather than by the selection of an optimum size for the facility.

13 Project Delivery Cairns Convention Centre

SITE CLEARANCE

56 In the course of its site inspection the Committee saw the existing land usage adjacent to the site. In particular it noted that the surrounding area contained a number of large industrial storage tanks including some used for storing molasses.

57 The Committee was concerned that in order to achieve the best possible marketing advantage, these tanks should be removed as quickly as possible. To this effect the Committee understands that negotiations involving the Cairns Port Authority and the lessees of the tanks are currently being undertaken in order to have the tanks relocated.

DESIGN AND BUILDING PROCUREMENT

58 The procurement strategy adopted for this project was endorsed by Cabinet in association with the appointment of the Casino Operator on 23 July 1993 and addresses the following areas:

Funding/Project Budget Management/Steering Committee Tendering/Project Management Operator Owner/On-Going Maintenance

59 The Management Steering Committee was established to oversee the project through all stages from development of the initial brief to handover to the Operator of the facility. The initial requirement of the Steering Committee was to make a determination in regard to the site of the Convention Centre.

60 In order to provide an opportunity for a range of design concepts it was decided that a limited architectural design competition be conducted. In order to offset costs of preparing these designs a fee of $25,000 was to be paid to each competing firm. This approach is in accordance with principles suggested by this Committee in its report into the Brisbane Convention and Exhibition Centre. The Committee has been advised that this arrangement had been strongly supported by those in the architectural profession. The successful architectural firm was then to be invited to proceed with the development of the concept design and the Convention Centre Operator was to be chosen concurrently in order to allow for their input into this latter design phase. A select list design and construct tender will then be called and, at the conclusion of the tender process, the architectural firm would be novated to the successful design and construct tenderer.

61 The Committee received evidence that currently the Operator has been appointed and architectural design is continuing to be refined. It is anticipated that an invitation for tenders will occur on 25 June 1994 and that construction will commence in September 1994. The construction period will be in the order of 12 months and conventions will be able to be held at the Centre in early 1996.

14 Project Delivery Cairns Convention Centre

CRITICISMS OF THE PROCESS

62 The Committee received a number of submissions which commented favourably upon the decision to execute a limited design competition. Similarly, the decision to provide a stipend to each of the competitors was also received favourably, particularly by representatives of the architectural profession.

63 The Committee is in favour of the provision of a level of funding to be provided by the Government to offset the costs of design work. It is concerned, however, that the Government should ensure that sufficient benefits accrue as a result of this funding and that sufficient information is provided to competing firms in order to achieve the required standards of design and presentation.

64 The Committee also received evidence indicating a degree of concern that in the current process architectural work is not prepared by local Queensland firms. The Committee notes the concerns raised by industry representatives that the procurement system used on this project may evidence a trend by Government to award architectural work to national practices which have expertise in particular building types. The evidence provided to the Committee argued that, while national practices have their expertise in various areas, their local Queensland offices may not reflect the same level of experience as their head offices.

65 The Committee does not accept that this is either necessarily the case or that the present contract award is flawed. Evaluation was performed by a widely experienced, diverse and independent panel and the design chosen is clearly outstanding.

66 The Committee makes no recommendation or further comment on this matter at this time but will continue to monitor developments as part of its future inquiries.

15 Operator Appointment Cairns Convention Centre

OPERATOR APPOINTMENT

OPERATOR SELECTION AND APPOINTMENT

67 As with the Brisbane Convention and Exhibition Centre, it was decided to appoint the Operator of this facility early enough to allow it input into the design process.

68 As such, Expressions of Interest for appointment as Operator of the Convention Centre were sought nationally and resulted in nine submissions. A shortlist of three proposals was developed and a document entitled "Invitation to Submit a Management Proposal" was issued to the shortlisted companies. This outlined the required form and content of proposals as well as the selection criteria. Submissions for Management Proposals closed on 20 December 1993.

69 The invitation to lodge a management proposal stated that:

"The successful Operator will have industry knowledge and expertise necessary to:

• Develop and implement effective marketing plans;

• Operate the facility to the satisfaction of convention and exhibition organisers, convention delegates, exhibition attendees, community function patrons, and the Queensland Government;

• Manage the facility at a consistently high level of quality commensurate with the presentation of a world class centre; and

• Attract and retain experienced and motivated personnel in managing the Centre."

The Operator was also required to review the successful design and the design brief and have input into the development of the final design, construction and fit out of the Centre. Proposals were subsequently received from two of the three shortlisted firms.

70 Due to the short timetable involved, it was decided to engage consultants to review the proposals. These included an accounting firm to review and report on the financial and commercial aspects of the proposals and a firm of solicitors to review the legal aspects and management conditions contained in the proposals and to assist in the production of the final management agreement. Both consultants were previously engaged for similar services in the development of the Brisbane Convention and Exhibition Centre.

16 Operator Appointment Cairns Convention Centre

71 On 17 January 1994 presentations were made to the Review Panel, with four members of the Review Panel visiting the operations of both companies from 19-21 January. The successful Operator was then appointed on 4 February 1994 and negotiations are now continuing to finalise an acceptable Management Agreement.

17 Design Considerations Cairns Convention Centre

DESIGN CONSIDERATIONS

OVERVIEW

72 The design of the complex is in response to the Government's stated objectives as provided in the Brief of Functional Requirements issued in October 1993. In addressing those objectives, regard has been had to other similar facilities in Australia and overseas. The design life for the project buildings, primary facilities and services has been set at fifty years.

73 The Centre is initially to be constructed without an associated exhibition hall. However, the design brief highlighted the need to allow for future development of associated exhibition facilities. Accordingly the successful design team has addressed this matter.

74 The Centre Hall is to provide a dedicated convention facility with the capacity to cater for a convention of 600 delegates with supporting banquet space and trade show space. The Hall will provide 2,000m2 of flat floor functional area and will be able to host all convention related activities such as plenary sessions, concurrent sessions, entertainment spectaculars, trade shows and general exhibitions. It will have a seating capacity for up to 2,400 in plenary or theatre modes and 1,500 in banquet mode. Restaurant, coffee shop and lounge bar facilities will also be required by the brief of functional requirements.

ROOM NUMBERS

75 The Convention Hall is designed to be a flexible and multi-functional facility with a column-free interior. It is to have sufficient support space to allow for concurrent sessions, workshop sessions and meetings as well as the capability to be partitioned into workable areas of various sizes.

76 In addition to the above, smaller rooms for conducting simultaneous activities such as weddings, small formal dinners and seminars have been included. As well as breakout and meeting rooms a number of studio and conference rooms with associated storage areas have been provided. These rooms are intended to serve as media rooms for interviews, press conferences and broadcasts. In total there will be seven meeting rooms: 3 x 60m2, 2 x 80m2 and 2 x 125m2. There is also provision for a prefunction area of some 860m2.

FLEXIBILITY

77 The Committee established, in its previous inquiry into the Brisbane Convention and Exhibition Centre, that a key design criteria for successful convention centres is that of

18 Design Considerations Cairns Convention Centre

maximum flexibility in order to facilitate the capture of the widest possible range of market opportunities. The size of conventions is wide-ranging and flexibility is therefore essential in all aspects of the project's design in order to maximise the potential market opportunities and rewards.

78 In the Brisbane Convention and Exhibition centre all spaces were required to be acoustically isolated and include upholstered seating with armrests, matching seating for flat floor areas, visibility to all parts of the stage, and ceilings of sufficient height to allow the Great Hall to function as an exhibition space in conjunction with the Exhibition Halls. Simultaneous interpretation facilities and headphones to each seat were also required. The input of both natural and artificial light and acoustically isolated projection booths capable of serving all hall configurations individually or simultaneously were also included, as were specific loading dock facilities and access. The Committee believes a similar standard should be sought for the Cairns Centre.

TRAFFIC IMPLICATIONS

79 The issue of traffic movement at the Centre and at other new developments was prominent in the Committee's public hearings in Cairns as traffic congestion has become a significant issue in Cairns. The problems of congestion and lack of parking spaces in Cairns will be accentuated over the coming years as the city grows unless adequately addressed in the planning for major centres. In this regard the Committee notes that Q-Build Project Services commissioned a report which analysed the traffic impact of the respective sites in conjunction with other proposed developments as expected at year 2000.

80 These proposed future developments included:

• The Railway Station relocation to Bunda Street • A major redevelopment on the Cairns Rail Site • The Casino development on Spence-Abbott-Wharf Streets • A public car park (350) on Grafton-Hartley Streets • A cruise ship and bus passenger terminal at Martin Parade • The Grand Pacific Hotel on Abbott-Aplin-Esplanade Streets and • The Barrier Reef Hotel on Abbott-Wharf-Lake Streets

81 The study revealed that over 93 percent of the expected overall traffic growth in p.m. peak hour trips at the year 2000 will be attributable to traffic generated by the following five major developments:

19 Design Considerations Cairns Convention Centre

Trips % of Growth

Casino 300 5.4 Convention Centre 470 8.5 Cairns Rail Site 4,025 72.5 Grand Pacific Hotel 280 5.0 Barrier Reef Hotel 100 1.7

82 Currently during the p.m. peak hour in the Cairns central area some 11,420 trips are made. It is expected that by the year 2000 this will increase by 50 percent. The Committee notes that the traffic generated by the Convention Centre represents 8.5 percent of the overall growth, a relatively low amount.

83 In coming to the decision on site selection the analysis concluded that the comparative traffic impacts of a Convention Centre at the various sites showed that no one site provided significant traffic benefits over another. Cost estimates for site specific traffic works required in the immediate vicinity of the Convention Centre site options were:

The Pier, which had two traffic options at $70,000 and $225,000 The Fuel Tank Farm site at a cost of $185,000 The Railway Site at a cost of $55,000

CAR PARKING

84 The Committee notes the evidence that it has received which suggests that current parking arrangements around the courthouse and police station complex is less than desirable. The Committee is concerned that a similar situation should not occur at the Convention Centre site.

85 The Committee was informed that a car park for 400 vehicles will be provided in the Centre. In the initial stage some 100 of these would be underground and by the completion of Stage II all car parks will be underground. In the meantime, 180 to 220 spaces will be provided at ground level.

86 It was further noted that the car park will not be a major revenue producing asset. It is noted that the Cairns City Council had previously offered to fund an additional 200 parking spots, to increase the level to 600. This offer has subsequently been withdrawn.

ACCESS FOR THE DISABLED

87 At an early stage in the design competition the Australian Council for the Rehabilitation of the Disabled and various other community groups briefed the

20 Design Considerations Cairns Convention Centre

competing design teams in regard to their particular areas of need. The Committee notes that the successful design team has paid careful attention to the various suggestions from these community groups.

88 In the case of access for the disabled, the Australian Council for the Rehabilitation of the Disabled also provided input to the Steering Committee in regard to the evaluation of this aspect of the design. In its report to the Steering Committee, the Australian Council for the Rehabilitation of the Disabled noted the successful architectural team had provided an access scheme which was to be commended. Further, "that front and side treatment in the design is excellent and ensures equal access principles are adopted in the design". The Australian Council for the Rehabilitation of the Disabled's review encompassed all areas of the design in respect to access and facilities for staff and members of the public with disabilities.

89 The Committee congratulates the relevant authorities for this innovative approach which enables priority to be given to issues of access to public buildings. The Committee encourages such a process to be adopted, as appropriate, in future Government projects and continued through later stages with this project.

CHILD MINDING

90 A parenting room has been included in the design and is readily accessible from the Great Hall and meeting rooms. The room provides lounge-style sitting area with four lounge chairs and appropriate facilities for young children and babies and a unisex toilet with hand wash basin, suitable for use by disabled persons.

91 Additionally, the functional brief made allowance for one of the meeting rooms to be capable of being converted for use as an occasional child minding facility, for hire by organisers of functions. Contiguous with one of the 60m2 meeting rooms is the requirement for provision of an office, a store room, nappy changing and wash area, children's toilets and kitchenette.

92 The design produced by the successful design team includes the provision of a dedicated child minding space which will be located in the lower level of the facility. The Committee has been informed that adjunct care is under consideration for this space.

21 Exhibition Facilities Cairns Convention Centre

EXHIBITION FACILITIES

DEDICATED EXHIBITION FACILITIES

93 The Committee received evidence that the Cairns City Council was strongly in favour of the provision of an associated exhibition facility at the Centre. The Mayor of Cairns suggested that for an additional $12 to $14 million a multi-use exhibition/entertainment facility could be constructed in association with the Centre. It was also suggested that some form of joint venture between the private and public sectors could be established.

94 The importance of the availability of associated exhibition facilities was highlighted in the Brisbane Convention and Exhibition Centre studies. It has been established that up to 50 percent of conventions held an associated exhibition and that this figure is increasing. In such centres there was, therefore, a primary need for a "design solution that creates a multi-purpose facility in which flexibility of size and use are the keys".

95 The Committee received evidence from the Director-General of the Administrative Services Department that the Cairns Centre would be catering for a limited elite market and that, in his opinion, an associated exhibition facility was not justified. Contrary to this, the Mayor of Cairns City stated that there was a very strong need for a multi-use exhibition facility. The Far North Queensland Promotions Bureau also provided evidence to the Committee that it considers that the ability to expand the facility was "absolutely vital". The Bureau notes that this was encompassed by the Steering Committee by it establishing the Stage II design into the original design.

96 The Committee understands that there may be strong support within the tourist industry in Cairns for an exhibition facility to be constructed concurrently with the Convention Centre. The Committee has not received any detailed cost estimates of the notional savings in concurrent construction compared with construction at a later date. It was expressed that savings would be in the order of double the cost and that "architects have expressed the opinion that it would cost about half the amount to build at the same time". These figures are notional only and no evidence has been given of any more developed costs.

97 The Administrative Services Department estimated that the exhibition facility, as currently envisaged, may be constructed within the next five to ten years and that the saving by simultaneous construction of the exhibition hall could be as high as 20 percent in real cost terms. It has also been argued before the Committee that an additional cost of building at a later date would be the loss of revenue for the 12 to 18 months of construction as the Centre would be difficult to market for this period.

98 It was suggested to the Committee that a number of possibilities exist for some level of private sector involvement in the construction of an exhibition-type facility. However,

22 Exhibition Facilities Cairns Convention Centre

the project would most likely not be on a competitive return or investment basis. At the same time, evidence provided by the Mayor of Cairns and the Manager of the Far North Queensland Promotions Bureau in regard to possible funding for an associated multi-purpose exhibition centre suggested the possibility of a permanent basketball booking for the centre. It was pointed out, however, that this may also limit the ability of the centre to attract bookings.

99 The Committee notes the comments of the Director-General of the Administrative Services Department that thus far current studies do not indicate that the development of the exhibition facility would be viable. However, it is obvious that substantial savings could be made through concurrent construction and that future losses could be avoided. The Committee believes that this area deserves further detailed evaluation.

23 Energy Management Cairns Convention Centre

ENERGY MANAGEMENT

ENERGY EFFICIENCY

100 As established in the Committee's previous inquiry into the Brisbane Convention and Exhibition Centre, energy efficiency is an essential element in ensuring that any convention centre operates as efficiently as possible. This is particularly important to the long-term viability and profitability of the centre. The Committee understands that a number of energy efficiency measures will be introduced with this project and believes that this Convention Centre will be viewed as a show piece for innovative and efficient energy design. The Committee further notes that in general terms

101 The Committee notes that in general terms these measures can lead to increases in the initial capital costs of the project, however energy efficiency produces continued savings throughout the economic life of the facility and, as such, represents a wise investment. The Committee believes that the energy efficient design of this centre will result in lower long term operating costs as well as showing the government's commitment to energy management and fulfilling its role in showcasing energy efficient designs.

102 In its submission to the Committee, the Australian Conservation Foundation raised issues in regard to the methodology of initial evaluation of the costs of the Centre in relation to the Government's commitments as outlined in the Inter-Governmental Agreement on the Environment. This submission further argues that the full environmental costs of a construction should be recognised. The Committee notes these comments but makes no recommendations in this regard.

24 Ownership of the Centre Cairns Convention Centre

OWNERSHIP OF THE CENTRE

103 The Committee was advised that four possible ownership arrangements for the Centre had been considered. These include the establishment of a separate statutory body, vesting ownership with the Cairns Port Authority, vesting ownership with the Cairns City Council and, finally, department of State responsibility. It has been decided to leave it with the department of State pro tem. The Treasurer has determined that the Steering Committee will act as owner for the first three years of operation.

25 Consultation Cairns Convention Centre

CONSULTATION

SPECIFIC GROUPS

104 As noted previously, the Committee was pleased with the level of consultation in the design process between the design team and a number of interest groups. The Committee notes the facilitation of this process by officers of the Administrative Services Department and concurs fully with this innovative approach.

105 As previously discussed, a representative of the Australian Council for the Rehabilitation of the Disabled provided a briefing to each of the design teams and subsequently reviewed and commented upon those aspects of the design in the evaluation process. Additionally, the Australian Conservation Foundation was also provided with an opportunity to present their ideas to each of the design teams. However, the Committee notes that while offering to participate in the evaluation of the competitors, the Steering Committee declined such an offer. In a submission to this Committee, the Chairman of the Steering Committee stated that this offer was declined for two reasons. First, that it was outside the initial assessment criteria provided to the competitors and, second, because of the widely differing levels of information provided in the different submissions.

106 The Committee understands that the Meetings Industry Association, which had previously provided a submission to the Committee in its inquiry into the Brisbane Convention and Exhibition Centre, was also provided with the opportunity to brief the respective competitors at an early stage of the design competition process.

COMMUNITY

107 A high degree of attention has been given by the Steering Committee in regard to all aspects of the consultation process thus far. Even representation on the Steering Committee itself has been structured to ensure local participation through the inclusion of representatives from Cairns City Council and the Mulgrave Shire Council, as well as the Far North Queensland Promotions Bureau and the Cairns Port Authority. These representatives have been able to provide a high degree of local input in regard to decisions which have been taken.

108 Public consultation has also been promoted in regard to the establishment of the site. The process included provision for public submissions to be made in writing or orally. The Committee believes that the extensive level of consultation that has been invested in this project will greatly benefit the users of the facility and enhance the final project.

26 Conclusion Cairns Convention Centre

CONCLUSION

109 In the course of this inquiry the Committee has received substantial evidence as to the positive effects which will be produced through the development of the Cairns Convention Centre. In general, the Committee considers that the facility has been well planned and developed to this stage and is taking advantage of the knowledge gained in the establishment of the Brisbane Convention and Exhibition Centre.

110 The Committee is aware of the positive responses which have resulted from the Steering Committee's actions in regard to public consultation. In this regard the Committee has made a number of recommendations in regard to the on-going consultation needed to ensure the best development of the facility. The Committee hopes that the same standards which have been applied to date in the design phase will be continued to be applied in the construction and fit out processes.

111 As noted in the Report, this Committee's recommendations in regard to the Brisbane Convention and Exhibition Centre have largely been applied to the development of the Cairns Convention Centre. The Committee believes that the implementation of those recommendations will produce a more suitable and user-friendly facility.

112 Cairns is receiving a convention facility capable of meeting the needs of the city and its associated tourist markets. The Committee congratulates all those involved in the development of this project and feels sure that their efforts will result in maximum benefit from the project being achieved for the people of Cairns and to the State in general.

27 Recommendations Cairns Convention Centre

RECOMMENDATIONS

113 The Committee therefore recommends:

(1) That planning for all major tourism developments in which the Government has a role include the full identification of markets at the earliest possible stage. (Paragraph 43)

(2) That the Government establish conditions and standards of performance for the quality of designs in design competitions and that payment for such designs be dependent on them meeting such standards. (Paragraph 63)

(3) That the Government continue to implement public consultation processes in the provision of its capital works projects and that the consultation process include significant groups with legitimate interests in proposed contracts and allow input and comment at both the design and construction stage. (Paragraph 108)

(4) That fit out levels be sufficient to provide essential requirements, and be of a similar standard and nature to that being provided in the Brisbane Convention and Exhibition Centre. (Paragraph 78)

(5) That:

(a) Further analysis be undertaken of the cost of building exhibition facilities concurrent with the Convention Centre, or deferring construction until a future period, and

(b) This information be provided to the Parliament together with the Minister's response required pursuant to Section 46 of the Public Works Committee Act 1989. (Paragraph 99)

(6) That Administrative Services Department enter into further negotiations with the Cairns City Council to ensure that traffic movement is properly addressed. (Paragraph 79)

28 Appendix A Cairns Convention Centre

APPENDIX A - Call for Submissions

29 Appendix B Cairns Convention Centre

APPENDIX B - List of Submissions Received

Mr Brian Clark & Mr Mark Tucker-Evans Mr Chris Greenaway Executive Director Australian Conservation Foundation Royal Australian Institute of Architects Brisbane Branch PO Box 3275 PO Box 5282 SOUTH BRISBANE QLD 4101 WEST END QLD 4101 Ms Liz Wedgwood & Mr Edwin Codd Ms Fran Forbes Managing Director Work and Child Care Advisory Service Edwin Codd & Partners Pty Ltd (Queensland) 10 Market Street 249 Coronation Drive BRISBANE QLD 4000 MILTON QLD 4064

Mr Ross Dunning Director-General Administrative Services Department GPO Box 2217 BRISBANE QLD 4001

Mr Brendon Horne Chairman ACROD Qld Division Access and Mobility Sub-Committee 1 Park Road MILTON QLD 4064

Mr Ian McGraw Public Sector Management Commission Executive Annexe 102 George Street BRISBANE QLD 4000

Mr Ken Rosebery Chief Executive Officer Queensland Tourist and Travel Corporation Level 36, Riverside Centre 123 Eagle Street BRISBANE QLD 4000

30 Appendix B Cairns Convention Centre

APPENDIX C - List of Witnesses

Mr Rex Bertling Client Services Manager Administrative Services Department Level 6 80 George Street BRISBANE QLD 4000

Alderman Kevin Byrne Cairns City Mayor Cairns City Council PO Box 359 CAIRNS QLD 4870

Mr Geoff Donaghy General Manager Far North Queensland Promotions Bureau PO Box 865 CAIRNS QLD 4870

Mr Ross Dunning Director-General Administrative Services Department GPO Box 2217 BRISBANE QLD 4001

31 Appendix D Cairns Convention Centre

APPENDIX D - Location Plan

32 PARLIAMENTARY COMMITTEE OF PUBLIC WORKS

No. Report Date Tabled

1 Annual Report for the Period Ending 30 June 1989 6 July 1989 2 Inquiry into the Proposed Construction by the Brisbane and 28 September 1989 Area Water Board of a Dam on the Albert River at Wolffdene (September 1989) Report for the Period 1 July to 19 October 1989 19 October 1989 3 No Public Works Committee Report No. 3 was issued 4 Annual Report for the Period 6 March to 30 June 1990 23 August 1990 5 Bundaberg Hospital Redevelopment - Stage Two (October 1990) 24 October 1990 6 Aboriginal and Torres Strait Islander Housing - The Future 28 May 1991 (May 1991) 7 Annual Report for the Period 1 July 1990 to 30 June 1991 18 July 1991 8 Building Another Mental Institution or Housing a New Mental 24 October 1991 Health Service? - A Report on Community Debate Concerning Construction of the New Kirwan Psychiatric Rehabilitation Unit (October 1991) 9 Consultation and Planning for Schools and Colleges between State 5 December 1991 and Local Authorities (November 1991) 10 The Proposal to Build a 33-Level Office Block at 111 George Street 5 December 1991 (November 1991) Annual Report for Year 1991 - 1992 25 November 1992 11 Kirwan Psychiatric Rehabilitation Centre 2 March 1993 12 The Proposed Upgrade of the Townsville Correctional Centre 3 March 1993 13 Public Housing in Toowoomba 19 March 1993 14 The Development of the Sciencentre - the Old Government Printery 13 May 1993 15 Queensland Centre for Advanced Technologies 13 May 1993 16 Cairns Courthouse, Police Headquarters and Watchhouse Complex 20 May 1993 17 Replacement Schools for Herberton and Mission Beach 15 July 1993

Annual Report for Year 1992 - 1993 1 September 1993 18 Brisbane Convention and Exhibition Centre 13 October 1993 19 The Construction of New Government Office Accommodation in 18 November 1993 Rockhampton 20 Health Facilities in Far North Queensland - Preliminary Report 3 December 1993 21 Health Facilities in Far North Queensland - Final Report 25 February 1994

This Committee tables transcripts of evidence; however, they are not numbered and they are not included in this list.

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