Legislative Council Fifty-Second Parliament, First Session (52-1) 52 1 Parliament of South Australia Legislative Council published Question Time Country Fire Service COUNTRY FIRE SERVICE The Hon. R.I. LUCAS Legislative Council COUNTRY FIRE SERVICE The Hon. R.I. LUCAS (14:54): I seek leave to make a brief explanation before asking the Leader of the Government a question on the subject of CFS stations. Leave granted. The Hon. R.I. LUCAS Legislative Council The Hon. R.I. LUCAS: In the financial year 2009-10 the Rann government announced a significant program of capital works involving a number of CFS stations and facilities such as the life saving club at West Beach. The first stage of this program involved CFS stations at Wilmington, Hamley Bridge and Balaklava, and the life saving club stage 1 facilities. SAFECOM awarded the construction management services contract to a company named Unique Building Pty Ltd. Earlier this year, three CFS stations (at Wilmington, Hamley Bridge and Balaklava) were knocked down, with the promise that new stations would be built by the start of the critical fire season next week. I have been advised that there has been for some months a major contractual dispute between SAFECOM and its contracting company, Unique Building Pty Ltd. I am told that eight subcontractors are owed $280,000. They are obviously very angry as small businesses needing to employ people within their businesses, some with unpaid bills of up to $40,000 to $50,000 each as a result of this ongoing dispute. I am told that SAFECOM, just prior to the end of the financial year (in June of this year), made an up-front payment of $1.5 million to Unique. I am now told that SAFECOM, after taking legal advice, is demanding repayment of $740,000 from Unique, under the contract. I am aware of a 19-page letter from SAFECOM to Unique alleging, over those 19 pages, significant nonperformance of many provisions under the contract. That letter was sent in the last week of August or the first week of September. There are many claims in that 19-page letter, including, I am advised, claims that the contractor does not carry significant covers of insurance, which are required under the terms of the contract. I am told that two months later, as of this week, there has been no response from Unique to the demands two months ago from SAFECOM. I have been advised that for the last six weeks, all work has stopped on the CFS stations and the surf lifesaving club. The CFS stations, I am advised, have been told that the earliest possible completion now is likely to be the end of summer, in February. CFS representatives from the Wilmington area have advised me, for example, that their station has been knocked down and that their equipment is currently being housed in three or four separate locations spread over the town, placing them at a considerable disadvantage in terms of having to manage any fire in the coming fire season. The Hon. J.S.L. Dawkins interjecting: The Hon. R.I. LUCAS Legislative Council The Hon. R.I. LUCAS: The Hon. Mr Dawkins says, 'Particularly given their proximity to Mount Remarkable and the recent significant fire there.' My questions to the minister are: 1.	On what basis did SAFECOM make a payment of $1.5 million in June 2010 to Unique Building Pty Ltd, and did that prepayment comply with all government guidelines relating to capital works payments and, in particular, the guideline that prevents prepayment by any agency in one financial year for work to be completed in the following financial year? 2.	When will the work recommence on the building of the CFS stations, and when are the stations now expected to be completed? 3.	Given that Wilmington, Balaklava and Hamley Bridge will not have CFS stations during the coming critical fire season, what action can be taken by SAFECOM to assist CFS brigades in those areas in terms of tackling the potential fire risk in their communities in the coming summer season? 4.	Will the minister ensure that urgent action is taken by SAFECOM to help resolve this dispute and, in particular, to ensure that the small business subcontractors, currently owed up to $280,000, are paid as soon as possible? The Hon. P. HOLLOWAY Legislative Council Minister for Mineral Resources Development Minister for Urban Development and Planning Minister for Industrial Relations Minister Assisting the Premier in Public Sector Management The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (14:59): I will refer those questions to the Minister for Emergency Services in another place and bring back a reply.