Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-04-08 Daily Xml

Contents

PUBLIC-PRIVATE PARTNERSHIPS

The Hon. R.I. LUCAS (15:13): I seek leave to make a brief explanation before asking the minister representing the Treasurer a question about public-private partnerships.

Leave granted.

The Hon. R.I. LUCAS: Last year, in evidence to the Budget and Finance Committee, senior officers from the education department indicated that, in relation to the super schools PPP, they expected that final bids would be lodged at the end of September last year. They also expected that the financial close for the PPP process would be in the very, very early part of 2009, with schools to open in 2010—although, to be fair to the departmental representatives, Mr DeGennaro, Director of Finance, said:

Again we are planning for the schools to open in 2010—as soon as possible in 2010. It will be subject to proposals that come in whether the first two schools are available in term one, 2010.

So, it was clear that he was doubtful about a start early in 2010 even if there was financial close very, very early in 2009.

On 24 March, the Treasurer, in answer to a question in another place (and I briefly summarise his response), said that the government expects to reach contractual close in June this year. Rather than early 2009, he has now indicated that there is a delay of up to six months in contractual close. Industry sources have informed me that, when the final bids were accepted at the end of September 2008, none of those bids was accepted and that all three consortia bidding for the contract were told to go back and rework their bids. A final bid date was extended to February 2009—a delay of almost six months. My questions to the minister representing the Treasurer are as follows:

1. Given that the final bids were lodged in September 2008, why did the government and its representatives require all of the consortia to review their bids and to lodge revised and final bids in February 2009?

2. During this particular period, did the government negotiators change the government's bidding position in relation to the government's negotiating position with the bidding consortia?

3. Given the apparent six months' delay for financial close for these bids, will the Treasurer now confirm that it will be improbable that any of these super schools will be built, operating and open for the start of term 1, 2010?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:17): I will refer the honourable member's questions to the Treasurer and bring back a reply.