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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-05-03 Daily Xml
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AUDITOR-GENERAL'S REPORT

In reply to Mr PISONI (Unley) (10 November 2010).

The Hon. J.W. WEATHERILL (Cheltenham—Minister for Education, Minister for Early Childhood Development, Minister for Science and Information Economy): As reported in the Auditor-General's report, $12.9 million relates to project management expenditure by the Department of Education and Children's Services since 2006 on the Education Works project which includes the New Schools PPP project.

The $12.9 million covers costs relating to the total Education Works program that includes the Stage 1 New Schools project and the Stage 2 School buildings projects. The Stage 1 New Schools costs include costs directly attributable to the capital development of the New Schools PPP project as well as costs of transition relating to Stage 1. These costs also include Stage 2 costs relating to the Education Works school projects.

The $12.9 million figure was not included in the $323 million that is quoted as the value of the Pinnacle contract. The break-up of the $4.7 million consultant amounts between Stage 1 New Schools Project and Stage 2 (school amalgamations) is as follows:

Costs from 2007-08 to 2009-10 PPP costs Transitioncosts Stage 2 Total
Consultants—Aurecon $2.590 m $2.590 m
Consultants—other $0.027 m $0.027 m
Legal and probity costs $2.110 m $2.110 m
Total $4.700 m $0.027 m $4.727 m


The $2.590 million in Aurecon fees relates to a contract for a lead project manager for the PPP process that was signed in 2007. As lead contractor fees include Walter Brooke as the architectural consultant, Rider Levett Bucknall as the cost consultant, and KPMG as the financial consultant.

Legal and probity costs of $2.110 million for the New Schools project included fees from the Crown Solicitor's Office, the Attorney-General's Department, the private sector legal adviser, Corrs Chambers Westgarth based in Victoria, and reimbursement of probity fees to the Department of Treasury and Finance. In 2007 and part of 2008, the Attorney-General's Department would pay the private sector legal fees and invoice the Department of Education and Children's Services for reimbursement.

Other consultants for Stage 2 include a fee of $13,196.00 to the Centre for Economic Studies in 2006-07 and $13,856.00 to PKF Consulting in 2009-10.

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