Page 481 - Week 02 - Wednesday, 13 February 2013

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MADAM SPEAKER: A supplementary question, Mr Coe.

MR COE: Treasurer, can you detail how funding an auction process can cost $405,000?

Mr Barr: Can you repeat the question?

MR COE: Yes. Can you detail how funding an auction process can cost $405,000?

MR BARR: This is not a project that I ran myself. Certainly I can seek some advice—

Members interjecting—

MADAM SPEAKER: Order, members!

MR BARR: I can seek some advice from the directorate around the costs associated with that particular process. But in all large procurement, it is reasonable to anticipate that, particularly for large construction processes, the procurement and other costs associated with projects can be up to 10 per cent of the total cost. In relation to an auction, there would clearly be some legal advice and requirements associated with that, as well as a range of other costs, I imagine, associated with the ongoing procurement.

I will provide for Mr Coe some further information in relation to that particular auction, but I do not think it would be unusual for there to be costs of that size associated with a procurement that is quite significant.

MADAM SPEAKER: Supplementary question, Dr Bourke.

DR BOURKE: Could the Treasurer please advise what are the benefits to the territory that will arise from this project?

MR BARR: Most importantly, the ability to generate a large amount of renewable energy at an effective price. One of the important elements of this particular project in the context of its being a reverse option was a very competitive process bringing international investment to the territory. The particular firm that was successful, I understand, is a Spanish company with a strong record of large-scale solar delivery. It is significant investment in the territory economy, will provide for ongoing employment opportunities and will certainly make a significant contribution to the territory’s renewable energy targets and our greenhouse gas reduction targets.

It is important that the territory is in a position to attract national and international investment, and we should be encouraging such investment. I am surprised, I must admit, to hear the little mutterings coming from the Deputy Leader of the Opposition that international investment is not welcome in the ACT.

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