Page 3289 - Week 10 - Thursday, 17 September 2015

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Capital works—funding
(Question No 490)

Mr Smyth asked the Treasurer, upon notice, on 12 August 2015:

(1) In relation to table 5.1.1 in Budget Paper 3 which indicates a capital provision of approximately $1.5 billion, in relation to the projects and initiatives covered by this capital provision, what amounts for each year, are set aside for in-service operating expenses and financial expenses (eg admin expenses, staffing, suppliers expenses and interest payments etc) for the projects covered in the capital provision.

(2) How are estimates for these in-service operating expenses arrived at (eg a percentage factor applied to the capital infrastructure component or more itemised estimates of operating and financial costs).

(3) What area of the budget are those in-service operating costs estimates included.

(4) What amounts for each year, are set aside for project planning and development, and project management and procurement expenses for projects covered in the capital provision.

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

(1) The provision is a high level estimate to improve the transparency of the budget forecasts. The provision does not include specific estimates for operating costs. Financing costs for projects covered by the provision are included as for any capital project and are consolidated in the Interest Expense line in Table 9.1, 2015-16 Budget Paper 3 (BP3), page 269.

The costs associated with projects included in the provision have not been published due to their commercially sensitive nature.

(2) Estimates of operating costs would be finalised and published at the time of any decision to proceed with a project.

(3) See response to Question 1.

(4) For the projects listed under the Capital Provision the associated appropriations for expenses that have been made are as follows:

- the New ACT Courts Facility project in the 2014-15 Budget has had investment of $5.476 million for the Public Private Partnership to develop the New ACT Courts Facility, reference 2014 15 BP3, page 141.

No new expense funding was appropriated in the 2015-16 Budget for this project;

- the Australian Forum project had expense funding of $1.1 million in 2015-16, reference 2015-16 CMTEDD Budget Statement, Table 51, page 51;

- Capital Metro and associated expenses are represented in the Capital Metro Agency appropriation tables and financial statements as detailed in the Capital Metro Agency Budget Statement on pages 6 and 7;

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