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Legislative Assembly for the ACT: 2006 Week 10 Hansard (18 October) . . Page.. 3221..

MR CORBELL (continuing):

The government is confident that the project is continuing to be managed in a very professional and effective way. The appointment of Bovis Lend Lease confirms the strong level of industry interest and willingness to be engaged in what is a national best practice project, one which will serve the ACT well for many years to come.


MR MULCAHY: My question is to the Minister for the Territory and Municipal Services. The current operators of Revolve have managed to run the not-for-profit recycling plant successfully since 1988. It has not only fulfilled its intended role but also provided a useful service to the people of the ACT. Why has the government now decided to put this business out to tender and why will the current operators not be compensated if they are unsuccessful in being awarded the tender?

MR HARGREAVES: I will answer the second part of the question first. They will not be compensated because it is an open tender process; it is transparent and it is open and in accordance with the provisions of the Financial Management Act-in the same way as anyone else who competes at open tender does not get compensated if they lose a tender.

The landfill operations at Mugga Lane have three parts to them: recycling, reuse and the landfill. Recycling is about oils, batteries and that type of material. Reuse is about the Revolve type of activities that we know of where you go in there, pick something up, take it away and reuse it. Landfill, clearly, is the digging of holes and sticking stuff in them.

The contract for the landfill is now up and the territory believe that we should explore options to get the best value for the money we pay. I believe that quite correctly my department has sought tenders for the operation of those three facets through ACT Procurement Solutions. ACT Procurement Solutions are independent of my department, part of another one, and they will conduct the tender process in accordance with the Financial Management Act.

We have sought expressions of interest through the tender process for the provision of all three services, or one of them, or parts of them, to make sure that we get a good outcome for the operations at the Mugga Lane site. We wish to enhance our achievement of no waste by 2010. We wish to make sure that there is an open and competitive process in place. The misconception that some people may have, quite innocently, is that Revolve is a charity. It is a business-a business with a turnover in the last year or so of, I think, about $850,000. In fact, it has achieved $1 million worth of turnover.

We are obliged, in accordance with competitive neutrality, to put these things out to tender and we will evaluate them in accordance with the criteria contained in the specifications, which are obtainable on the web. I wish Revolve and any other business success should they wish to submit a tender. It is now a procurement matter and it is not for me to interfere in it.

MR SPEAKER: Do you have a supplementary question, Mr Mulcahy?

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