2.1
The Department of Defence (Defence) seeks approval from the Public Works Committee to proceed with the North Queensland Mid-Term Refresh Program: RAAF Base Townsville, Townsville Field Training Area and HMAS Cairns. The project proposes to deliver works at the following three locations:
RAAF Base Townsville, located in the Townsville suburb of Garbutt
Townsville Field Training Area, located 60 kilometres south-west of Townsville.
HMAS Cairns, located approximately two kilometres south of the Cairns central business district.
2.2
Defence state that the purpose of the works is to ‘meet essential short-term base sustainment needs’ by ‘providing vital estate maintenance and upgrades to support capability at all three sites.’
2.3
The estimated cost of the project is $111.2 million over the three project sites (excluding GST).
2.4
The project was referred to the Committee on 15 April 2021.
Conduct of the inquiry
2.5
Following referral, the inquiry was publicised on the Committee’s website and via media release.
2.6
The Committee received two submissions, one supplementary submission and one confidential submission. A list of submissions can be found at Appendix A.
2.7
On 21 May 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
2.8
Defence state that all three sites; RAAF Base Townsville, Townsville Field Training Area and HMAS Cairns, are ‘experiencing critical issues such as ageing and inadequate infrastructure, non-compliance with infrastructure standards and no longer meet all current work, health and safety requirements.’
2.9
Defence told the Committee that unless these issues are addressed, ‘there is risk that the facilities and infrastructure will be increasingly less able to support current levels of capability.’
2.10
In their submission Defence state that RAAF Base Townsville’s ability to ‘support wider military operations, including assistance to the civil community, risks being compromised if the supporting infrastructure and capacity cannot be relied upon.’ Additionally, as a forward deployment and mounting base, RAAF Townsville is experiencing a ‘significant shortfall in on base transit accommodation’, with current arrangements unable to cope with the ‘regional demand surge during high tempo operations and training exercises.’
2.11
In addition, the range camps within the Townsville Field Training Area, ‘are ageing and much of its older facilities and infrastructure is becoming increasingly unsustainable’. This is impacting on the ability of the training area to support the conduct of Army collective training and to support joint training across the broader Australian Defence Force.
2.12
As the northernmost naval base along the eastern seaboard of Australia, HMAS Cairns ‘plays a key strategic role in Australia’s northern naval capability.’ However, a 2014 engineering assessment of the Base found that there was a ‘need to refresh primarily ageing services to improve capacity, reliability and compliance to support and sustain Defence capability at the Base.’ These works are aimed at addressing that need.
2.13
The proposed works aim to deliver new and upgraded training capacity, living and working accommodation and infrastructure across the three sites, using a mid-term refresh approach.
2.14
At the public hearing Defence outlined the purpose of the mid-term refresh program:
Mid-term refreshes are a combination of remediation, replacement and upgrades of in-ground infrastructure necessary to maintain the compliance, safety and effectiveness of essential services. Essential services include the power, potable water, firefighting water, stormwater and sewer networks. Above-ground facilities works are also undertaken to ensure working and living accommodation remains fit for purpose and compliant with contemporary standards and has the necessary capacity to support base populations. In simple terms, a mid-term refresh ensures a base is in a condition that can safely and effectively support the capability of the Defence element residing on it.
2.15
In response to the Committee’s questions regarding if Defence planned to carry out any additional major work at the three sites within the next 5 – 10 years, Defence stated that:
Yes. For HMAS Cairns, definitely. Under Defence's Navy Capability Infrastructure Sub-Program we have a major component of work, which was recently publicly announced, where we'll be doing significant upgrades to the wharf at HMAS Cairns… Townsville Field Training Area will undergo redevelopment work, probably in the next five to 10 years. It'll be more significant than a mid-term refresh. It doesn't mean that we're doubling up or doing any nugatory work now. The mid-term refreshes are really there to do the here-and-now urgent things. The major redevelopments are more for the long-term view.
2.16
Defence confirmed that all three sites; RAAF Base Townsville, Townsville Field Training Area and HMAS Cairns, were categorised by Defence as ‘enduring bases’ or ‘enduring training areas’, meaning there are currently no plans to reduce or divest the sites for the foreseeable future.
Options considered
2.17
In their submission, Defence state that:
Between 2015 and 2017, Defence undertook comprehensive Project site investigations, stakeholder consultation, whole-of-life cost analysis, and design development at all three Bases. The purpose was to identify the capital facilities and infrastructure works required to address each need.
2.18
Defence considered the following four options for the North Queensland Refresh Program:
Option 3: minimum priority scope
Option 4: priority maintenance and capability enhancement
2.19
Defence state that option 1 (do nothing) was not a viable course of action as it ‘will significantly impact Defence’s ability to train personnel, provide assistance regionally and to civil communities (during natural disasters, humanitarian support or national emergencies, support operations)’, and would increase the future maintenance costs.
2.20
Option 2 (full scope) was discounted as while option 2 would ‘deliver the essential maintenance and essential sustainment requirements necessary to address compliance and capability needs, at all three sites’, the extent of the new works for this option ‘would require that it occur in the context of a major Base investment for optimal investment’, increasing the cost significantly.
2.21
Option 3 (minimum priority scope) was discounted by Defence as it ‘focusses strictly on priority maintenance sustainment matters to achieve compliance with relevant building codes ‘, and does not sustain capability.
2.22
Option 4 (priority maintenance and capability enhancement) was assessed by Defence as the preferred option as it addresses the ‘relevant high priority maintenance matters, including ICT and fire protection works, and the higher priority capability requirements.’
2.23
Defence state that option 4:
…addresses the essential requirements to best sustain existing capability until all three Bases can be fully redeveloped and best aligns with Australian Defence Force Joint Operational and training requirements.
Scope of the works
2.24
The proposed scope of the North Queensland Mid-Term Refresh Program: RAAF Base Townsville, Townsville Field Training Area and HMAS Cairns is comprised of three project elements:
1
Project element 1 – RAAF Base Townsville:
2
Project element 2 – Townsville Field Training Area:
3
Project element 3 – HMAS Cairns:
2.25
Defence noted in their submission that if savings were achieved through competitive tendering and retired risk provisions, Defence plans to utilise the savings to carry out enhancements ‘that are consistent with the approved Project scope.’ One example of possible enhancements is the currently unfunded additional ablutions facilities at the Townsville Field Training Area.
Community consultation
2.26
In their supplementary submission to the Committee, Defence listed the extensive range of community consultation activities undertaken to date and provided a high level summary of key concerns and issues raised by stakeholders during the consultation process.
2.27
In response to the community consultation activities conducted by Defence, Brigadier Galton noted that:
From the briefings we did with local, state and federal members or local councils, no issues or concerns of a negative nature were raised by them. We did have one member of the general public raise a concern about PFAS. But from those local, state and federal members there was nothing negative as part of those consultations.
2.28
Defence noted in their submission that during the construction period, there will be ‘limited localised increases in traffic supplying and removing material to and from each site’; however ‘Defence does not anticipate an increased dependency on local facilities and amenities within the Base boundaries or into the local community.’
Environmental Impact
2.29
While Defence has assessed the works as not having ‘a significant impact on existing environmental and heritage values,’ and does not require referral to the Minister of Environment and Energy under the Environmental Protection and Biodiversity Conservation Act 1999 (Cth), the works do have the potential to disturb soils or groundwater with concentrations of polyfluoroalkyl substances (PFAS).
2.30
To manage this risk, prior to excavating, Defence stated it will ’establish a Project PFAS management approach in accordance with the Defence PFAS framework and Base management plans’, to ‘identify actions in encounters and in management in re-use or disposal of PFAS contaminated excavated soil under different contaminant concentrations.’
2.31
Additionally, the works could result in the disturbance of some asbestos, pesticide and heavy metal contamination, however, Defence note that ‘sampling during design did not indicate the presence of such contamination that could represent a risk to human health or the environment.’
Cost of the works
2.32
The proposed North Queensland Mid-Term Refresh Program: RAAF Base Townsville, Townsville Field Training Area and HMAS Cairns has an estimated cost of $111.2 million, exclusive of GST. The cost between locations is estimated at $70 million for RAAF Base Townsville, $15 million for HMAS Cairns and $25 million for Townsville Field Training Area.
2.33
The total project cost includes ‘management and design fees, construction costs, information and communications technology, furniture, fittings, equipment, contingencies and a provision for escalation’.
2.34
Defence provided further details on project costings in its confidential submission and during an in-camera hearing.
2.35
The Committee is satisfied that the costings for the project provided to it have been adequately assessed by the proponent entity.
Revenue
2.36
No revenue is expected to be generated by the project.
Committee comment
2.37
The Committee recognises the strategic value of RAAF Base Townsville, Townsville Field Training Area and HMAS Cairns and is pleased that all three sites are considered by Defence as enduring bases or training areas.
2.38
The community consultation undertaken for this project over the three locations was extensive and the Committee is encouraged by the range of stakeholders who have engaged with Defence as part of the consultation process.
2.39
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.
2.40
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.
2.41
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: North Queensland Mid-Term Refresh Program; RAAF Base Townsville, Townsville Field Training Area and HMAS Cairns.
2.42
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.