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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2008-10-28 Daily Xml
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PRISONS, NEW

The Hon. R.I. LUCAS (15:03): I seek leave to make an explanation before asking the Minister for Correctional Services a question about new prisons.

Leave granted.

The Hon. R.I. LUCAS: As a result of the recent global financial crisis, in the past two or three weeks the Treasurer has made a number of public statements in relation to a proposed review and a new financial statement to be brought down some time in the next month or so.

This morning, on ABC Radio, with David Bevan and Matthew Abraham, the Treasurer repeated what he has said on a number of occasions, as follows:

Thank you. I am saying what I have said from day one, is that the only projects that we have excluded from our review of capital works is the Marjorie Jackson-Nelson hospital and the school PPP projects, which are close to being let. We are reviewing all government capital works projects and that once we have made a decision on which of those projects will be deferred, we have no more to say.

Yesterday, at a Budget and Finance Committee hearing, the Under Treasurer updated the committee on the current PPP project for correctional services institutions. He indicated that the bidders were in the final stages of putting their bids together. He indicated that the request for proposal (RFP) would close in a little over a month, in December this year. He said that contract close would be some time next year and that construction of the new facilities would start in the middle of next year.

As a result of the statements that have been made by the Treasurer in recent times, that the only projects that have been excluded from the review are the schools PPP and the Marjorie Jackson-Nelson Hospital—pointedly, the Treasurer has not referred to the correctional services PPP—a number of questions have been raised by people associated with the bidding groups along the lines that they are spending tens of thousands and, in some cases, hundreds of thousands of dollars in terms of putting together their requests for proposals. Their bids are almost finally due, as the Under Treasurer has highlighted, and the Treasurer's public statements have created considerable uncertainty in relation to the continued expenditure by some people in relation to those bids. My question to the Minister for Correctional Services is as follows—

The Hon. B.V. Finnigan interjecting:

The Hon. R.I. LUCAS: No; my question is for the Minister for Correctional Services. Has she been made aware—

The Hon. B.V. Finnigan interjecting:

The Hon. R.I. LUCAS: If you would like to ask a question of the Treasurer, you can, but I am asking a question of the Minister for Correctional Services.

Members interjecting:

The PRESIDENT: Order!

The Hon. R.I. LUCAS: The Hon. Mr Finnigan is regarded highly by his colleagues, and I am sure that they look forward to questions from him. Has the Minister for Correctional Services been made aware of concerns by some of the bidding parties, and people associated with the bidding parties, as to the impact of the Treasurer's current statement and position about no commitment to go ahead with the correctional services PPP at the moment, subject to the review? If she has been made aware, either by her officers or others associated with the bidding process, what assurances, if any, has either she or the Treasurer been able to give to the bidding parties in relation to their continued expenditure on this particular PPP?

The Hon. CARMEL ZOLLO (Minister for Correctional Services, Minister for Road Safety, Minister for Gambling, Minister Assisting the Minister for Multicultural Affairs) (15:07): In his opening remarks, the honourable member clearly responded to the question he is trying to ask; that is, yes, the Treasurer made a statement to the parliament probably three weeks ago about the current global financial crisis. Essentially, he said that he would be making a further statement in the next few weeks. Other than that, the Treasurer, of course, is the lead minister in relation to the public/private partnerships: as the Treasurer, clearly that is his role. So, I think it would be not very wise for me to pre-empt the Treasurer in relation to whatever statement he makes. I will refer that question to the Treasurer in another place and bring back a response for the honourable member.

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