Mr SETTER - 1995-08-15
A couple of months ago, I had the privilege, with the previous Minister for Transport and Works, to visit the new port construction at East Arm. I was amazed at the amount of work that had taken place there. I understand that construction of the wharf, as opposed to the causeway, at the $75m East Arm port development is scheduled to commence in the second half of this financial year. Obviously, the money that the Northern Territory government is investing in this development has the potential to provide a massive boost to local industry. What is proposed and what steps is the minister taking to ensure that as much benefit as possible from this development flows to Northern Territory businesses?
ANSWER
Mr Speaker, firstly, in relation to the causeway, I advise members that that part of the project is nearing completion. For the benefit of members of the media, next week a major event will be held there to mark its completion.
The Northern Territory government is mindful to ensure that local firms receive as much benefit as possible from major spending on public works such as the new port. It is important that local firms are involved in major works projects such as State Square, not only on the basis of cash flow and profit but also in terms of developing skills. The experience local industry can gain from involvement with projects such as State Square and the East Arm port will stand it in good stead in the course of future development in the Territory.
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With that in mind, I have considered a number of options for the release of the next contract on the port. This month, my department proposes to call expressions of interest for contracts, for the construction of the wharf and associated dredging, expected to be worth more than $30m. One option was to advertise nationally, which would have attracted a large number of interstate companies because of the magnitude of the work. Obviously, that option would have placed local firms at a disadvantage in competing against those larger national companies. Another option considered was to seek expressions of interest from companies that had prequalified for this type of work under tendering procedures. That would restrict many interstate companies, but there are still several interstate companies with no ties to the Territory on the list of those that have prequalified. That would mean there would be a chance that local industry could be left out in the cold. While it might have been expedient to consider only local prequalified companies, these companies might not possess sufficient in-house expertise to enable them to offer the full scope of innovative design and construction techniques being sought in this area.
To overcome all of these problems, I have decided to call for expressions of interest from all of the prequalified local companies, but to allow them - indeed, encourage them - to enter into joint venture arrangements with other companies that may have the additional skills and expertise required. This option offers the government increased opportunities for innovative, cost-effective design and construction while maximising local input. It allows those companies which consider that they are not sufficiently experienced in this type of work to offer competitive and innovative design and construction techniques. It is in the best interests of the Territory's economy and development, and it provides an opportunity for local companies to gain valuable experience working on a large project that would otherwise would be unavailable to them.
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ANSWER
Mr Speaker, firstly, in relation to the causeway, I advise members that that part of the project is nearing completion. For the benefit of members of the media, next week a major event will be held there to mark its completion.
The Northern Territory government is mindful to ensure that local firms receive as much benefit as possible from major spending on public works such as the new port. It is important that local firms are involved in major works projects such as State Square, not only on the basis of cash flow and profit but also in terms of developing skills. The experience local industry can gain from involvement with projects such as State Square and the East Arm port will stand it in good stead in the course of future development in the Territory.
Page 690
With that in mind, I have considered a number of options for the release of the next contract on the port. This month, my department proposes to call expressions of interest for contracts, for the construction of the wharf and associated dredging, expected to be worth more than $30m. One option was to advertise nationally, which would have attracted a large number of interstate companies because of the magnitude of the work. Obviously, that option would have placed local firms at a disadvantage in competing against those larger national companies. Another option considered was to seek expressions of interest from companies that had prequalified for this type of work under tendering procedures. That would restrict many interstate companies, but there are still several interstate companies with no ties to the Territory on the list of those that have prequalified. That would mean there would be a chance that local industry could be left out in the cold. While it might have been expedient to consider only local prequalified companies, these companies might not possess sufficient in-house expertise to enable them to offer the full scope of innovative design and construction techniques being sought in this area.
To overcome all of these problems, I have decided to call for expressions of interest from all of the prequalified local companies, but to allow them - indeed, encourage them - to enter into joint venture arrangements with other companies that may have the additional skills and expertise required. This option offers the government increased opportunities for innovative, cost-effective design and construction while maximising local input. It allows those companies which consider that they are not sufficiently experienced in this type of work to offer competitive and innovative design and construction techniques. It is in the best interests of the Territory's economy and development, and it provides an opportunity for local companies to gain valuable experience working on a large project that would otherwise would be unavailable to them.
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Last updated: 09 Aug 2016