Page 4177 - Week 11 - Thursday, 17 Sept 2009

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MR SPEAKER: Treasurer?

Mr Seselja: They’re unclear.

MS GALLAGHER: I think we made it clear yesterday that I would take questions as they related to the Treasury portfolio and for my responsibilities under the TOC Act and that the Minister for the Environment, Climate Change and Water would take questions as they relate to the delivery of water security projects and water policy in general.

Mr Seselja: Actually, you didn’t. It wasn’t clear at all.

MS GALLAGHER: This is something that you did not seem to understand yesterday.

Mr Smyth: How about the alliance model?

MS GALLAGHER: Indeed, and this is why the question is relevant to my portfolio in that you have asked a question about the alliance delivery model. As I understand it, the alliance delivery model is a model that has been used for a number of dam upgrades in particular. It is a procurement method whereby Actew, in this instance, collaborates with one or two or three other partners to share the risks and the responsibilities of delivering the capital project. My understanding is and my advice is that 83 per cent of the alliance models undertaken for major projects have come in on or under budget.

Actew made the decision after rigorous analysis that the alliance model was a model which was a suitable model to use for the enlarged Cotter Dam. In terms of its advice to me as Treasurer, Treasury are supportive of this model for the enlarged Cotter Dam.

MR SPEAKER: Mr Smyth, a supplementary question?

MR SMYTH: Treasurer, how did the government and Actew ultimately decide upon the alliance model of project management for the Cotter Dam enlargement? Which other models were considered?

MS GALLAGHER: The alliance model was a matter for the board, which the board determined, in advice to me, from Treasury, after their own analysis—and we were not the decision makers in this instance—that this is a suitable procurement methodology for the delivery of the enlarged Cotter Dam. I will be interested if Mr Smyth has any views about alternative methods of procurement for it.

MR SPEAKER: Mr Seselja, a supplementary?

MR SESELJA: Thank you, Mr Speaker. What are the risks of using the alliance model, Treasurer?

MS GALLAGHER: I think the risks are that the project does not come in on budget. I imagine that would be the major risk. The companies involved—and I do not have a

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