Page 5001 - Week 15 - Thursday, 15 December 2005

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Capital works—cost benefit analysis
(Question No 771)

Mr Smyth asked the Chief Minister, upon notice, on 16 November 2005:

Have cost/benefit analyses been conducted on the (a) upgrade of the convention centre, (b) Link project, (c) Glassworks project and (d) Prison project; if so, can copies be made available to the Assembly.

Mr Stanhope: The answer to the member’s question is as follows:

(a) There has been no cost/benefit analysis (CBA) conducted on the $30million upgrade project for the National Convention Centre announced in August 2005.

In 2004 the Government contracted ACIL-Tasman to conduct a CBA of various expenditure scenarios for a new or refurbished convention centre, ranging from zero to $200 million in expenditure.

In broad terms the ACIL Tasman analysis showed that any level of expenditure on convention centre facilities did not produce a positive CBA outcome. However, in the Government’s view, the ACIL-Tasman analysis did not sufficiently factor in the positive externalities associated with the convention centre to the broader ACT economy.

The $30 million allocated to this upgrade is what the Government believes is necessary to bring the National Convention Centre to a good functional standard and to address building ownership compliance requirements. Further, the arrangements reached with the Intercontinental Hotels Group in August 2005 also conferred full ownership of the National Convention Centre to the ACT Government for a consideration of $1. The Government has obligations to manage and maintain the property and part of the $30million expenditure will be directed at these obligations.

Earlier economic and financial reports on the upgrade scenario are:

•  2001/02: GHG / Review of the proposal to upgrade the National Convention Centre and cost benefit analysis of alternative options

• 2002/03: GHD / Further analysis of findings in initial report

•  2002/03: Access Economics / Further economic analysis of options suggested in the GHD report.

(b) and (c) Cost/benefit analyses conducted for each of these projects formed part of proposals considered by Cabinet and therefore cannot be released.

(d) Detailed analysis of the costs associated with building and operating a new facility for remand and sentenced prisoners can be found in the report titled Proposals for Future ACT Correctional Facilities. This can be accessed under the Current Issues heading at

Public service—travel
(Question No 772)

Mr Smyth asked the Chief Minister, upon notice, on 16 November 2005:

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