Mr MILLS - 2010-08-12
The interim BER report notes that the principle complaint about the program relates to value for money. Cost overruns have plagued this program throughout Australia, and the Territory is no exception. In answer to a question from the opposition, it has emerged that in many projects there are substantial variations between the intended cost and the final cost. Can you explain a $3.1m blowout between the intended costs for 16 BER primary school projects and the final cost of these projects? How do you account for a 17.5% blowout in the tendering process you were responsible for controlling?
ANSWER
Madam Speaker, an excellent question. I am very glad to take it, Leader of the Opposition, because …
Mr Mills: You have been a bit sneaky about it though.
Dr BURNS: Well, talk about sneaky or stupid. This media release is either one or both where you assert with a number of schools, namely Kalkaringi School, Bakewell, and also Minyerri I think, that there has been cost overruns.
Let us look at Bakewell in the electorate of the member for Brennan. Bakewell was allocated $2m under this particular BER funding. That was for three classrooms and a library. That was scoped originally at just over $1m. They had $2m they were allocated, and the scope of works for the three classrooms and the library came in at $1m. They were then told they could scope the work further, and they did. Sorry, I was talking about Kalkaringi there.
At Bakewell, it was actually $3m. Originally, the work came back at $2.5m and they were told they could scope extra works into it. So they scoped a concrete spoon drain, new fence, refurbished and replaced playground equipment, two panels of pool fencing, non-slip vinyl to wet areas, a cover to the basketball court, joinery, quality audio, stage-lighting dimmers, and a stage curtain. They were able to get more for their $3m. There is no cost overrun here.
The Kalkaringi one is very interesting because they were allocated $2m and that was for three classrooms and a library. They were allocated $2m. Then they said: ‘Okay, you have been allocated $2m, it has been scoped at a $1m; you can have extra works’. Those extra works were: window upgrades, additional classroom, reception counter, asbestos removal and disposal, time-flow plumbing connections, new wall sections, and so on. That was then scoped at approximately $500 000; that is the $493 000 in your media release. They had $500 000 left and the Principal of Kalkaringi said: ‘We are not going to use all of that money. We want you to give $200 000 to Kintore Street in Katherine’.
You came in here with your first set of questions based on false premises. I will be looking very closely at what you alleged. You are so off the mark with this project, so off the mark with your media release. It is all about you covering your head about what happened here yesterday: the disgraceful performance. You have not changed the subject on anything except your leadership.
Members interjecting.
Madam SPEAKER: Order! Order!
ANSWER
Madam Speaker, an excellent question. I am very glad to take it, Leader of the Opposition, because …
Mr Mills: You have been a bit sneaky about it though.
Dr BURNS: Well, talk about sneaky or stupid. This media release is either one or both where you assert with a number of schools, namely Kalkaringi School, Bakewell, and also Minyerri I think, that there has been cost overruns.
Let us look at Bakewell in the electorate of the member for Brennan. Bakewell was allocated $2m under this particular BER funding. That was for three classrooms and a library. That was scoped originally at just over $1m. They had $2m they were allocated, and the scope of works for the three classrooms and the library came in at $1m. They were then told they could scope the work further, and they did. Sorry, I was talking about Kalkaringi there.
At Bakewell, it was actually $3m. Originally, the work came back at $2.5m and they were told they could scope extra works into it. So they scoped a concrete spoon drain, new fence, refurbished and replaced playground equipment, two panels of pool fencing, non-slip vinyl to wet areas, a cover to the basketball court, joinery, quality audio, stage-lighting dimmers, and a stage curtain. They were able to get more for their $3m. There is no cost overrun here.
The Kalkaringi one is very interesting because they were allocated $2m and that was for three classrooms and a library. They were allocated $2m. Then they said: ‘Okay, you have been allocated $2m, it has been scoped at a $1m; you can have extra works’. Those extra works were: window upgrades, additional classroom, reception counter, asbestos removal and disposal, time-flow plumbing connections, new wall sections, and so on. That was then scoped at approximately $500 000; that is the $493 000 in your media release. They had $500 000 left and the Principal of Kalkaringi said: ‘We are not going to use all of that money. We want you to give $200 000 to Kintore Street in Katherine’.
You came in here with your first set of questions based on false premises. I will be looking very closely at what you alleged. You are so off the mark with this project, so off the mark with your media release. It is all about you covering your head about what happened here yesterday: the disgraceful performance. You have not changed the subject on anything except your leadership.
Members interjecting.
Madam SPEAKER: Order! Order!
Last updated: 09 Aug 2016