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Legislative Assembly for the ACT: 1997 Week 9 Hansard (4 September) . . Page.. 2935 ..

MR WHITECROSS (continuing):

With regard to road maintenance, the audit found that funding had been inadequate to meet the most economical and efficient maintenance of roads. The audit referred to a 1992 road maintenance evaluation study which recommended that to maintain the ACT road assets on the most economical basis, which includes minimising user costs, $18m per annum would need to be spent on road maintenance. The audit also referred to a community survey in 1992 which showed that the expenditure of $18m was the preferred public funding option - that is, preferred by the community.

The audit also found that the actual estimated expenditure on pavement maintenance ranged between $9.2m and $10.3m in real terms for the years 1993-94 and 1995-96. This was broadly half of the $18m annual road pavement maintenance funding level recommended as being consistent with minimising total road transport costs to the community - that is, short-term savings with long-term costs. While funding had been inadequate, the audit found that available funding had been cost effective, that the contracted maintenance had been economic and that road surfaces were of a safe standard. The audit noted that, while maintenance efficiency had increased significantly, further improvements could produce cost savings of some $300,000. The audit found that streetlights are not managed in a cost-effective manner and that potential savings of $400,000 could be derived from competitive tendering. The audit also found that administrative costs at 24 per cent of annual maintenance funding were excessive. These are the same streetlights that the Government wants to sell to ACTEW for $100m.

The committee sought ministerial comment on the audit findings and was provided with an action plan which included strategies to address the findings. The action plan leans heavily on the Government's asset management strategy, which in itself identifies a number of key issues in respect of roads, including a rolling program of condition audits, asset information systems, performance measures and new works requirements. The asset management strategy, in draft form - we have not seen a final form - was reviewed by the committee and was the subject of its report No. 27 presented to the Assembly last Thursday with certain recommendations. The Minister also advised that an asset management plan for roads will be developed during the current fiscal year. It will be interesting to see whether that is before the election.

The committee gave consideration to benchmarking against other jurisdictions and Government efforts to obtain greater assistance through the Commonwealth Government's inquiry into road funding and through the Commonwealth Grants Commission. Pavement management systems were also reviewed and found to be wanting in terms of full use of resources dedicated to the function.

Arising from the audit and the Minister's submission to the committee, the committee has made a number of recommendations relating to benchmarking, the outcome of the Government's representations to the Commonwealth on funding for roads and streetlighting, a review of infrastructure management services being undertaken by the Department of Urban Services, bridge condition monitoring, cost inefficiencies arising from the employment of non-essential staff, the establishment of a technology office as recommended by an earlier review and reasons for delay in making the pavement management system fully operational. I commend the report to the Assembly.

Debate (on motion by Mr Kaine) adjourned.

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