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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-05-06 Daily Xml
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Public Works Committee: 2 Second Avenue, Mawson Lakes

Ms DIGANCE (Elder) (11:17): I move:

That the 515th report of the committee, entitled 2 Second Avenue, Mawson Lakes, be noted.

Renewal SA owns the property located at 2 Second Avenue, Mawson Lakes. They have negotiated a long-term lease with Codan (namely, a 15-year lease, with the right to renew for a further 10 years). In order to facilitate a lease, Renewal SA was aware that they would need to upgrade the facility to an acceptable standard. They have agreed to the following works:

base building works;

fit-out works to a maximum of $6 million (the lessee will contribute the remaining funds to meet their own requirements);

construction of a new building; and

civil works to facilitate semitrailer entry and egress from the site in a single direction.

Details of the exact works are included in the committee's report and the agency's submission. These works will ensure the facility meets the Building Code of Australia requirements, complies with the requirements of the Disability Discrimination Act, and meets a minimum 4-star NABERS energy rating.

The cost of construction is estimated at $17.977 million (GST exclusive) and the total gross rental over the initial 15-year lease period is anticipated to be in the order of $46 million (GST exclusive).

Works are due to commence in July 2015, with the completion next year in February. Given this, and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the proposed public works.

Mr PENGILLY (Finniss) (11:18): The opposition members again supported this project. It was interesting to listen to the information that was supplied to the committee on the day. We asked some questions about why Renewal SA were spending the money on upgrading this facility that was formerly used, and why indeed the company that has taken over the lease of the building is not doing it themselves. I found that the answers were satisfactory, but questioned to some extent why this happened anyway.

My view is that the government may well have been told that if they did not pay through Renewal SA, the company would have gone interstate and taken its employees with it and we would have had nothing. We never quite drilled down to the bottom of that one; however, the project will be a good project. It is a substantial upgrade, which of course, for that amount of money, it has to be, but for the benefit of South Australia we supported the project.

Mr WHETSTONE (Chaffey) (11:20): I too rise to support this project. As the Chair and the member for Finniss have explained, the Renewal SA project at Second Avenue Mawson Lakes is certainly an interesting project. Essentially, the project has been described as looking to leverage and exploit the maximum potential out of those facilities that we have within Technology Park. Codan Limited is the tenant that entered into an agreement with Renewal SA, and the proposal will see Codan relocate to Technology Park from Newton with up to 250 employees.

I share the member for Finniss's sentiments as to whether there was an ultimatum or deal put to government to entice them to Technology Park. They are currently operating out of a number of different facilities. This facility and this development will enable them to amalgamate operations into that one location.

The building was constructed in three stages, firstly in 1995, then 1997, and then 2000. It has always been used for technology and advanced research type activities, but initially it was constructed for telecommunications company Motorola, as many of you would know. They subsequently left occupation of the premises in 2008 and since then BAE occupied the facility. BAE then left at the end of 2013 and, at that stage, we put the building in the hands of a commercial agent who undertook a national marketing campaign and then three months later brought forward Codan as a potential tenant.

The concerns that I have are around the fact that this is a significant investment of about $17 million that is simply for a relocation, and it seems the government has a bigger defence and technology picture in the project. Renewal SA will be providing significant upgrades to the current offices previously used by BAE, but we as the opposition supported this project and we see it as a bigger picture within the defence industries here in South Australia.

Ms DIGANCE (Elder) (11:22): I thank my fellow Public Works Committee members, the member for Chaffey and the member for Finniss, for their contributions, and I appreciate the work of all other committee members and also the executive and administrative officers of the Public Works Committee and all those witnesses who presented. I appreciate the bipartisan support for this project.

Motion carried.

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