3.1
The Department of Agriculture, Water and the Environment (the Department) seeks approval from the Public Works Committee to proceed with the Scientific Research Station Modernisation on Macquarie Island.
3.2
Macquarie Island is located 1,466 kilometres south east of Australia in the Southern Ocean and is part of the state of Tasmania. The island’s size is 34 x 5 kilometres, and together with its surrounding waters extending out 12 nautical miles, form a listed World Heritage Area established in 1997. This World Heritage Area reserve is managed by the Tasmanian Parks and Wildlife Service of the Tasmanian Government’s Department of Primary Industries, Parks, Water and Environment.
3.3
The Department state that the purpose of the works is to redevelop ‘…the research station and associated infrastructure on Macquarie Island. The redevelopment includes the renewal of field huts which are dispersed across Macquarie Island and the decommissioning and removal of redundant assets.’
3.4
The estimated cost of the project is $49.8 million (excluding GST).
3.5
The project was referred to the Committee on 23 June 2021.
Conduct of the inquiry
3.6
Following referral, the inquiry was publicised on the Committee’s website and via media release.
3.7
The Committee received four submissions, one confidential submission and one confidential supplementary submission. A list of submissions can be found at Appendix A.
3.8
On 13 August 2021, the Committee conducted a project briefing, public and in-camera hearing via teleconference. A transcript of the public hearing is available on the Committee’s website.
Need for the works
3.9
The Department explained that Australia’s national Antarctic interests and vision for Australia’s future engagement in Antarctica are set out in the Australian Antarctic Strategy and 20 Year Action Plan and that the plan ‘…details the tangible steps to be undertaken to fulfil the strategy and realise its desired outcomes’.
3.10
The strategy outlines a key action to:
Establish Australia’s position of science leadership in Antarctica through developing modern and flexible infrastructure, including progressing options for more efficient and flexible use of existing research stations.
3.11
There are three permanent research stations on the Antarctic continent, Casey, Davis and Mawson, and Macquarie Island in the subantarctic. On Macquarie Island critical scientific and long-term monitoring is undertaken as well a range of scientific programs including:
…upper atmosphere physics, geosciences, medicine, meteorology, remediation, climate change, biological sciences and island pest eradication recovery monitoring.
3.12
The research station at Macquarie Island was established in 1948 and has operated continuously since then. Access is only via ship and there is one voyage per year, which carries personnel and resupplies cargo to the island.
3.13
The Department explained:
The existing Macquarie Research Station consists of 48 buildings. After nearly 70 years, the research station is in a continuous state of decline with many structures at the end of their service life. The network field huts is similarly affected.
3.14
The key issues which are impacting existing station buildings and infrastructure include:
Degraded condition of essential buildings and infrastructure
Non-compliance with modern safety standards
Areas prone to ocean inundation.
3.15
The Department outlines that the redevelopment of facilities on Macquarie Island would ensure a year-round presence is maintained on Macquarie Island and would:
1
Maintain Australia’s ability to conduct high priority research in the subantarctic
2
Allow for the continuation of globally significant scientific and environmental monitoring programs
3
Ensure that important inputs into weather prediction services are maintained
4
Facilitate the maintenance of Australia’s commitments to the Comprehensive Nuclear Test Ban Treaty
5
Sustain Tasmania’s capacity to monitor, protect and manage a designated Nature Reserve and World Heritage Area
6
Provide economic, industry and regional development opportunities to local industry
7
Provide a safer workplace for expeditioners and researchers on station
8
Provide a rationalised and more efficient station.
Options considered
3.16
In their submission, the Department stated that:
The Government committed, in year two of the action plan, to develop an agreed approach to the future of the ageing Macquarie Island research station infrastructure, in collaboration with the Tasmanian Government. The Macquarie Island Modernisation Project addresses that commitment.
3.17
The Department outlined the three options considered for the Modernisation Project:
1
Option 1 – life extension (preferred option) – redevelop essential existing facilities and critical infrastructure to support a station population of 24 personnel and continue current levels of scientific activity.
2
Option 2 – new station (minimum scope) – new facilities and infrastructure to support a station population of 24 personnel and continue current levels of scientific activity.
3
Option 3 – new station (full scope) – new facilities and infrastructure to replicate the current station capacity of 40+ personnel, and provide a capacity for future growth in current levels of scientific activity.
3.18
The Department state that option 1 (life extension) was assessed as the preferred option as it represents value for money, meets the current capacity requirements at the lowest construction cost and retains capacity in its design to increase the station size in future, if necessary’.
3.19
Option 2 new station (minimum scope) would deliver a new purpose-built research station in a new location, south of the existing station buildings and accommodate a similar number of expeditioners with a similar surge capacity during re-supply.
3.20
Option 3 new station (full scope) would deliver a new purpose-built station with an increased capacity. To fully utilise the increased capacity there would need to be an expanded science program, which would have flow-on implications to the logistics and shipping program at increased cost.
3.21
When questioned about whether there would be any cost to Australia in not pursuing a new base or Option 2 or Option 3 the Department replied:
… We are firmly of the opinion that we haven't forgone anything in our commitments and what the government has made about them. Our intention is to maintain our presence on the island, and we're doing that. We are maintaining a year-round scientific facility, which we intended to do at the outset. The facilities that are there already are a good basis. They've stood the test of time and we are just looking at them, refreshing them and actually delivering the same outcome. In some regards, the location where they are is optimal for us in an emergency management sense as well, so I think it's a good option for us and I don't think we're stepping back from anything that we had in the past.
Scope of the works
3.22
The proposed scope of the Scientific Research Station Modernisation consists of eight project elements:
Critical infrastructure upgrades (including a new fuel farm, potable and firefighting water treatment, storage and distribution, ICT, wastewater treatment and power distribution) to address condition and compliance issues, and improve station resilience through new siting of key assets.
A new living and mess building to address condition issues in the existing facility and provide a modern facility fit for sustaining the health and wellbeing of expeditioners.
New and refurbished accommodation to address condition issues (including asbestos), and provide accommodation spaces in accordance with modern standards to support expeditioner wellbeing.
New coastal inundation protection to reduce the risk and impact of storm surge on essential infrastructure and structures.
Major refurbishment of essential facilities, including bulk stores, medical, scientific operations and workshops, to address condition and compliance issues (including removal of asbestos) and support modern station operations and personnel.
Minor refurbishment of other accommodation and support infrastructure to address condition issues (including removal of asbestos).
Refurbishment (or replacement) of four of the six existing field huts, to address condition issues in the highest priority field huts.
Decommissioning and removal of obsolete facilities to remove WHS hazards and reduce ongoing maintenance costs.
3.23
The Department noted that overall:
New and redeveloped facilities will be designed and constructed to provide safe, robust protection from the island’s high levels of wind and precipitation, be energy efficient, reduce impacts to the environmental and lower maintenance costs than the existing facilities.
3.24
In terms of shared accommodation, the Department clarified that it was ‘…only required for surge periods’ such as that typically included resupply during the annual voyage.
3.25
The Department explained some of the difficulties around the annual resupply, which would be utilised to deliver the project works noting that Macquarie Island is a tremendous logistical challenge…and that’s why the project is taking so long to actually undertake:
As an example, we usually bank on having eight to 10 days associated to take up the resupply activities. You'd think, with only moving between 120 and 300 tonnes of cargo, that would be ample time, but there are no wharf facilities, so you have to anchor the vessel from 400 metres to a thousand metres off the shoreline and then load cargo, in a very dynamic environment that's always moving, onto small light amphibious resupply and cargo vessels, called LARCs, that drive up on the beach, and then also use helicopters, which are also limited by weather windows. So you can understand why, in an environment where it's raining 300 days a year and the average wind speed is 30 kilometres an hour, the opportunities to conduct those operations safely are quite limited. For one day of activity on the island we usually lose two days to weather, especially in the resupply window.
Environmental impact and Sustainability
3.26
The project has approval by the Department under the Environmental Protection and Biodiversity Conservation (EPBC) Act 1999 and the Tasmanian Government’s Nature Conservation Act 2002.
3.27
The Department indicated that it undertook a series of environmental impact assessments to ‘facilitate the investigation works on the project, which included site visits, geotechnical investigations, site selection, site monitoring and field hut investigations.’
3.28
The Department further noted that the project would ‘incorporate environmentally sustainable design measures to arrive at a solution which is both robust, minimises impact and acknowledges its sensitive environment.’
3.29
Macquarie Island has a large amount of wildlife with:
…three tonne elephant seals, with massive herds of female elephant seals all over the beaches; orcas; penguins—just an amazing amount of wildlife that actually impacts on operations on the island—so you always have to be cognisant of that.
3.30
The Department indicated that the existing Macquarie Island Nature Reserve and World Heritage Area Management Plan 2006 and ‘well established Australian Antarctic Division Standard Operating Procedures’ would be used to manage any disturbance to wildlife.
Cost of the works
3.31
The proposed Department of Agriculture, Water and the Environment Scientific Research Station Modernisation, Macquarie Island has an estimated cost of $49.8 million, exclusive of GST.
3.32
The total project cost includes construction costs, management and design fees, escalation and contingencies.
3.33
The Department provided further details on project costings in its confidential submission and during an in-camera hearing.
3.34
The Committee is satisfied that the costings for the project provided to it have been adequately assessed by the proponent entity.
Revenue
3.35
No revenue is expected to be generated by the project.
3.36
The Department commented in relation to the facility use for research:
The Department encourages interest and continued investment in research by public universities, other research institutions and individual researchers. It does not charge for facility use or operating costs and hence provides in-kind support to the research effort. This approach is consistent with the Australian Antarctic Science Strategic Plan and 20 Year Australian Antarctic Strategic Plan.
Committee comment
3.37
The Committee recognises the longstanding value of the Macquarie Island Research Station and is pleased that this project will modernise the key elements of the existing station in a sustainable and cost-effective manner.
3.38
The Committee appreciated the work of the Department, through its Australian Antarctic Division, to provide the Committee with a detailed and informative remote site inspection. The Committee appreciated the detail provided in submissions and presentations and commends those who volunteer to undertake important research at Macquarie Island given the remote location and environmental conditions, including rain on over 300 days of the year.
3.39
The Committee is also pleased to note that the research taking place on Macquarie Island is made available to researchers around the world and commends the Department on its collaborative international work.
3.40
The Committee did not identify any issues of concern with the proposal and is satisfied that the project has merit in terms of need, scope and cost.
3.41
Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit for purpose, having regard to the established need.
3.42
The Committee recommends that the House of Representatives resolve, pursuant to Section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Department of Agriculture, Water and the Environment Scientific Research Station Modernisation, Macquarie Island.
3.43
The Committee recommends that the Department provide a detailed breakdown of the costs related to preliminary expenditure.
3.44
Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The Committee also requires that a post-implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.
Mr Rick Wilson MP
Chair