Department of the Legislative Assembly, Northern Territory Government

Mr EDE - 1994-11-23

Mr Speaker, last night on the television news, the minister said that he did not know the extent of cost overruns on State Square. The minister's exact words were: 'I mean, there is no way of knowing that because they are matters which are part of the contractual arrangements'. Why does the minister not know the contractual arrangementsbetween the government and Tipperary Developments?

ANSWER

Mr Speaker, the Leader of the Opposition has fallen into the kind of trap that he usually does.

Mr Ede: Of listening to what you say.

Mr MANZIE: In fact, the television excerpt was an edited version of what was said. In response to a question, I was pointing out to the reporter that the estimates advice given to me was that the cost will be around $170m at the end of the day. I quoted what the Auditor-General said in this House yesterday. Thus, the Leader of the Opposition knows this information and is attempting deliberately to waste time during Question Time.

Mr Ede: I want to know why you do not know the contractual arrangements.

Mr MANZIE: Nevertheless, it is important to place this on the record to show simply how frivolous the Leader of the Opposition's question is. I quote from the Auditor-General's annual report, as I did yesterday:

Final costs will not be known until completion of the project and until:

lodgment and determination of final trade contractor variations;

lodgment and final determination of prolongation claims by trade contractors; and

assessment and settlement of potential claims between the principal parties to the project,
the project manager, head contractor, consultants and the Northern Territory government.

A number of trade contractor prolongation claims have been settled and others are proceeding to arbitration.
To date, claims have settled in all cases for substantially less than the amount claimed.

Not only did I quote that yesterday, I quoted it twice. The Leader of the Opposition knows full well that there is no way of knowing what the final cost will be. He also knows full well ...

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Mr Ede: But you say that it is because they are part of the contractual arrangements, which you do not know ...

Mr MANZIE: That is a stupid remark.

Mr Ede: You said it on television.

Mr MANZIE: It was an edited answer of the full answer that I gave.

Mr Ede: Lift your game!

Mr MANZIE: The contractual arrangements allow for prolongation and variation, you fool!

Members interjecting.

Mr MANZIE: Secondly, the Auditor-General pointed out that those contractual arrangements allow for variations and prolongations, and you will not be able to tell what the final cost is until it is finished. It is very simple! If my answer was ...

Mr Ede interjecting.

Mr MANZIE: Wouldn't you expect that part use of that answer would give an incorrect impression and wouldn't anormal, sensible person who sat in here and heard it said several times understand what the answer is ...

Mr Ede: No, not with your ...

Mr MANZIE: ... and understand that the contractual arrangements allow for variations and prolongations? It has been said and it has been written. It is fairly easy to understand but obviously you have some problem in understanding the contractual arrangements. What is the problem? Is it that you cannot read? Is it that you cannot listen? What is it?

Mr Ede: It is because they quote you. That is the difficulty.

Mr MANZIE: Simply understand that the contract allows for variations and prolongations. Would you accept that?

Mr Ede: Yes, and I would ...

Members interjecting.

Mr MANZIE: Okay. Would you accept also the word of the Auditor-General who pointed out quite clearly that the final cost will not be known because of the contractual arrangements regarding prolongations and variations?

Mr Bailey: What is the finishing date for the liquidated damages?

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Mr Ede: You are in negotiation.

Mr MANZIE: It is very simple! Do a little reading, do a little listening, and attempt to ...

Mr Ede: You are answering some questions. You are in negotiation.

Mr MANZIE: ... remember that sometimes the media edits material. I am sure that on occasions you may claim to have been misquoted also. Nevertheless, it is very simple.

Mr Ede: It is a direct quote.

Mr MANZIE: Think about the situation, read and listen, and simply remember that the contractual arrangements allow for variations and prolongations. As the Auditor-General pointed out, that is something that will not be examined to determine the final cost until the project is finished - full stop!

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Last updated: 09 Aug 2016