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Public Accountability Committee REPORT ON PROCEEDINGS BEFORE PUBLIC ACCOUNTABILITY COMMITTEE IMPACT OF THE WESTCONNEX PROJECT CORRECTED At Macquarie Room, Parliament House, Sydney, on Tuesday 9 October 2018 The Committee met at 9:15 am PRESENT Reverend the Hon. F.Nile (Chair) The Hon. Rick Colless The Hon. Greg Donnelly (Deputy Chair) Ms Cate Faehrmann The Hon.Shayne Mallard The Hon. Daniel Mookhey The Hon. Dr Peter Phelps Tuesday, 9 October 2018 Legislative Council Page 1 The CHAIR: Welcome to the first public hearing of the Public Accountability Committee inquiry into the impact of the WestConnex project. Before I commence, I acknowledge the Gadigal people, who are the traditional custodians of this land. I also pay respect to elders past and present of the Eora nation and extend that respect to other Aboriginals who may be present. Today's is the first of three hearings the Committee plans to hold for this inquiry. It will hear from government departments, including Roads and Maritime Services, NSW Treasury, the Department of Premier and Cabinet and local councils, including the Inner West Council and the Strathfield Council. The Committee will also hear from Dr Patrick Harris, representing the Public Health Association of Australia, Dr Glen Searle, Penrith Valley Community Unions, and a number of community and resident groups. Before we commence, I will make some brief comments about the procedures for today's hearing. The hearing is open to the public and is being broadcast live via the Parliament's website. A transcript of today's hearing will be placed on the Committee's website when it becomes available. In accordance with broadcasting guidelines, while members of the media may film or record Committee members and witnesses, people in the public gallery should not be the primary focus of any filming or photography. I also remind media representatives that they must take responsibility for what they publish about the Committee's proceedings. It is important to remember that parliamentary privilege does not apply to what witnesses may say outside of their evidence at the hearing. I urge witnesses to be careful about any comments they may make to the media or to others after they have completed their evidence as such comments would not be protected by parliamentary privilege if another person decided to take an action for defamation. The guidelines for the broadcasting of proceedings are available from the secretariat. There may be some questions that witnesses could answer only if they had more time or with certain documents to hand. In these circumstances, witnesses are advised they can take a question on notice and provide an answer within 21 days. I remind everyone here today that the Committee hearings are not intended to provide a forum for people to make adverse reflections about others under the protection of parliamentary privilege. I therefore request that witnesses focus on the issues raised by the inquiry's terms of reference and be careful when using individual's names during the hearing. Witnesses are advised that any messages should be delivered to Committee members through Committee staff. To aid the audibility of the hearing, I remind both Committee members and witnesses to speak into the microphones. In addition, several seats have been reserved near the loud speakers for persons in the public gallery who have hearing difficulties. Finally, I ask everyone to turn off their mobile phones. I now welcome our first witnesses from Roads and Maritime Services. PUBLIC ACCOUNTABILITY COMMITTEE CORRECTED Tuesday, 9 October 2018 Legislative Council Page 2 KEN KANOFSKI, Chief Executive Officer, Roads and Maritime Services, affirmed and examined CAMILLA DROVER, Executive Director, Motorways Division, Roads and Maritime Services, sworn and examined The CHAIR: Would either of you like to make a short opening statement? Please keep it to no more than a couple of minutes. Mr KANOFSKI: I would like to thank the Committee for inviting Camilla Drover, the Executive Director, Motorways Division, and me to give evidence today and for its interest in the WestConnex project. WestConnex will form the spine of the Sydney motorway network, linking Sydney's west and south-west to the city, airport and port with more than 30 kilometres of continuous motorway. WestConnex seeks to address challenges that road users in the community encounter on a daily basis. It will deliver more than $20 billion in economic benefits to New South Wales, support 10,000 jobs in construction, shift traffic and heavy vehicles to the underground motorway, thereby returning local streets to local communities. The WestConnex project will provide more than 14 kilometres of new and upgraded cycle and pedestrian paths linked to existing cycleways. It will also deliver more than 18 hectares of open space for local communities and will provide a bypass for 52 sets of traffic signals, improving speed, reliability and safety of travel across the city. It will reduce greenhouse gas emissions by more than 610,000 tonnes per year by 2021. With any project of this size there will be disruption. We acknowledge that the WestConnex project has impacted members of the community and local areas. These impacts are taken very seriously. This is one of the realities of delivering major projects, particularly in a densely populated city. Most of the 33 kilometres of the project is being built in underground tunnels. This means we have been able to minimise the need for land acquisition and impacts as a result of noise during construction. We have also taken a large number of practical steps to minimise the impacts of the project. We acknowledge that construction has impacts and we do everything we can to minimise them. If we are to meet the needs of the growing city of Sydney in the future, investment in projects such as WestConnex is absolutely necessary. I will outline the role of Roads and Maritime Services [RMS] in WestConnex. RMS is the overall client on behalf of the Government for the project. In our role, we as RMS grant concessions on behalf of the Government as well as leases over the motorway. As the client, we develop and make recommendations to government on scope, staging and any other matter in connection with the WestConnex scope of works and manage the client-side budget. Tolls are set as maximum amounts in the concession agreements; the maximum toll is not determined by the private sector operator. As the client, we have undertaken significant work at the planning approval stages, including detailed technical and environmental investigations, design work and community consultation. We also acquire any required property for the project and will continue to play the role of client throughout the life of the project until 2060. Our role in WestConnex is similar to many other traditional public-private partnerships [PPPs] for motorways. The WestConnex Motorway follows similar governance and commercial principles to all other private motorways in New South Wales. Camilla Drover, as the Executive Director Motorways, is the accountable executive in my team for ensuring Roads and Maritime Services [RMS] delivers and meets our obligations. WestConnex is part of the New South Wales Government integrated transport plan for Sydney and is one of the largest and most complex infrastructure projects in Australia. WestConnex is made up of three stages, delivered as six projects over a 10-year period. The WestConnex project remains on time and within budget, with more than 40 per cent of the project now complete. The King Georges Road Interchange upgrade was the first WestConnex project completed, opening two months ahead of schedule in December 2016. Motorists are already benefiting from the widened M4, with four lanes between Parramatta and Homebush easing congestion and saving time. Tunnelling activity is complete on the new M4 East tunnel, and the focus now is on the mechanical and electrical fit-out of that tunnel to allow for safe operation of the motorway. About 80 per cent of the tunnelling on the new M5 is complete and the first bridge segment of St Peters Interchange is complete. The M4-M5 Link mainline tunnel interface with the M5 has been handed over to the M4-M5 Link contractor. The M4-M5 Link mainline tunnel contract has been awarded and construction on the site will commence later this year and will be open to motorists in 2023. The Rozelle Interchange and Iron Cove Link contract is in procurement and will open to traffic in late 2023. The WestConnex project has been and will continue to be subject to the highest level of government oversight. All major decisions regarding WestConnex are subject to government approvals processes. The three sub-projects of WestConnex are considered tier 1 high profile high risk, and as such are subject to independent external review by Infrastructure NSW under the Infrastructure PUBLIC ACCOUNTABILITY COMMITTEE CORRECTED Tuesday, 9 October 2018 Legislative Council Page 3 Investment Assurance Framework. RMS as the client for WestConnex is subject to the full range of public accountability measures. There has been extensive community consultation with respect to the WestConnex project. To date we have held 2,075 face-to-face meetings with residents, businesses and stakeholders. We have held more than 180 community information sessions, forums and street meetings with residents and businesses and stakeholders. We have carried out 3,496 doorknock events with residences and businesses. We have received and responded to 17,472 phone calls and 33,565 emails and letters. We have published and distributed work notifications, fact sheets, community updates and flyers to residents and businesses across the entire corridors. The Department of Planning and Environment received and responded to approximately 28,000 submissions and of the environmental impact statement [EIS] processes for WestConnex.
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