- Proposed Fit-out of New Commonwealth Parliament Offices at One Festival Tower, Adelaide, South Australia
Department of Finance
3.1The Department of Finance (Finance) seeks approval from the Committee to proceed with the proposed fit-out of new Commonwealth Parliament Offices (CPO) in Adelaide, South Australia.
3.2The project will deliver fit for purpose, safe and secure accommodation for ministers, parliamentarians and their staff, as well as facilities and administrative support staff at a new premise in Adelaide.
3.3The CPO will be located on levels 26 and 27 of a 29-story premium grade office tower in the One Festival Tower building, located on the north edge of Adelaide city. The building is part of the Adelaide Festival Plaza Redevelopment project planned for completion in 2026, which provides renewed open space connecting the site to Adelaide CBD and Adelaide Riverbank.
3.4The estimated cost of delivery of the project is $37.45 million (excluding GST).
3.5The project was referred to the Committee on 15 May 2024.
Conduct of the inquiry
3.6Following referral, the inquiry was published on the Committee’s website and via media release.
3.7The Committee received one submission, one confidential submission and one supplementary submission. A list of submissions is in Appendix A.
3.8On 15 July 2024, the Committee received a private briefing, and then conducted a public and in-camera hearing at Australian Parliament House, Canberra. A transcript of the public hearing is available on the Committee’s website.
Need for the works
3.9Finance is responsible for providing office accommodation and facilities for Commonwealth parliamentarians in each capital city.
3.10The current Adelaide CPO, located at 100 King William Street, Adelaide, was established on 1 November 2004. It consists of levels 12 and 13, with 1,993m2 of net lettable area (NLA). It received a minor refurbishment in 2012 and is now aged and no longer fit for purpose. The business requirements of the CPO require greater functionality and space than is currently available within the tenancy. In addition, the current lease expires in October 2024, with one five-year option to extend.
3.11Due to the limited space in the current facility, the CPO has not always been able to accommodate surge capacity when required for cabinet meetings or international visitors. At the public hearing Finance explained that ministers have sometimes had to host international visitors off-site.
3.12The site of the new fit-out consists of 3,960m2 NLA of office space at One Festival Tower, Adelaide. The increased NLA at the new site will meet functional requirements of the CPO including safe and secure facilities consistent with other states, including a dedicated government floor with appropriately secure Cabinet and communication facilities.
Options considered
3.13Finance originally considered extending the lease at the current premises, weighing up the current fixed lease terms, the competitive commercial property market in Adelaide Central Business District (CBD) and the ongoing viability of the existing site.
3.14When refurbishment of the current premises was not found to be cost-effective, Finance undertook a two-stage open approach to market for leased office accommodation for the proposed relocation of the Adelaide CPO. The approach to market resulted in Finance executing a 10-year lease (with two five-year extension options) at the Adelaide site. At the public hearing, Finance stated the perceived benefit of the lease-term:
The rationale for the 10-year initial lease, plus two 5x5 extension options, is that it allows us an opportunity to make a review to make sure the rent is still competitive and it gives us an opportunity to renegotiate at that point.
3.15The selected property was chosen due to the following advantages:
- It is a premium Property Council of Australia graded office tower, with significant environmental credentials.
- It provides superior base build amenities in a newly constructed building with large, open floors that provide superior design flexibility.
- It has appropriate base building security features such as CCTV and electronic access control that meets Finance’s security requirements, reducing cost and risk to the tenancy.
- It provides appropriate COMCAR curb-side drop off and secure underground car parking with discreet access to the lifts.
- It provides a degree of future proofing over 30 years, enabling Finance to adapt to the changing needs over the life of the lease.
- In addition, the site is located within Adelaide city adjacent to the Adelaide Railway Station. Tram and bus stops are within the immediate vicinity and support routes throughout Adelaide city and surrounding suburbs. The building is located near pedestrian and cycle pathways connecting to River Torrens and surrounds, supporting staff who use alternative modes of transport.
- Features of the building include:
- Efficient floorplates.
- End of trip facilities including change rooms, bicycle spaces and repair stations, lockers, and showers.
- Design principals which ensure access to 360-degree panoramic views and natural light.
- Onsite car parking facilities including 24 allocated parking spaces. Approximately 1500 parking bays will be available on a ‘user pays’ basis via a third-party provider.
- Located in the Festival Plaza precinct which is being transformed as part of the Adelaide Festival Plaza Project into a world-class destination at the heart of the Adelaide Riverbank.
- Proximity to the Adelaide CBD which contains retail outlets, cafés, takeaway, and formal dining options as well as other facilities such as fitness, health, childcare, supermarket, and post office.
Scope of the works
3.18The proposed fit-out will include:
- fifteen suites for ministers and parliamentarians (including offices and workstations for ministerial staff) consisting of:
- six Ministerial suites (in previous years up to five ministers have been based in SA)
- four visiting ministerial suites including high office holders
- four suites for use by Senators permanent, temporary or visiting (generally two suites used per Senator in lieu of an Electorate Office). These suites may also accommodate other visiting parliamentarians
- one suite for a former Prime Minister.
- Prime Minister office (and support) area
- meeting, training, media, telepresence and conference areas
- finance office for CPO facilities and administrative support staff
- secure reception and lobby areas
- communications rooms, storage and shower amenities
- kitchen, tea points
- parents / first aid and reflection spaces.,
- At the public hearing, Finance provided further context about the scope of the works and the reason for the increase from eight to fifteen suites:
…the increased footprint that we have identified allows us to facilitate those additional suites to ensure our CPO is fit for purpose and flexible to adjust to the make-up of the parliament for the next 20 years. Currently, the suites are very much at capacity—65 per cent. They're not fit for purpose. They're not as operational as we would like them to be. As a result, we have worked through intel information and looked at the standards across the other CPOs. The figure of 15 suites was established for us to be able to accommodate anything over the next 20 or 30 years, should there be any changes to the current make-up.
3.20Final facilities may be adjusted throughout the detailed design process and stakeholder consultation.
3.21The security classification of the suites and rooms requires enhanced building construction, perimeter hardware, security alarm systems, CCTV systems and access controls in accordance with the Commonwealth’s Protective Security Policy Framework.
Stakeholder consultation
Finance has undertaken interactive design workshops with key business line representatives to ensure business requirements have been accurately captured in the design.
3.23The following stakeholders have been, or will be, consulted and engaged with throughout the fit-out design project:
- targeted parliamentarians and staff
- finance executive and relevant business lines
- CPO Facilities and Administration Support staff
- CPO Steering Committee (senior staff from key organisations who will ensure the fit-out is fit for purpose and delivered in accordance with the functional requirements)
- relevant portfolio agencies
- Ventia Property Pty Ltd (Property Services Provider)
- RPS Group (Project Manager Contract Administrator)
- AMC Architecture (Architectural Design) and their subconsultants:
- GHD Pty Limited (SCEC Consultant, Services and Structural Engineer)
- WT Partnership Pty Ltd (Quantity Surveyor)
- Walker Corporation (Landlord and Facilities Manager).
- The proposed concept design has also been informed by staff feedback and lessons learnt from the delivery of other new Finance accommodation. Some key lessons learnt include: designing for security flexibility, incorporation of specific security zoning and acoustic requirements, and modern and tempered design to reflect the overall CPO functionality.
- At the public hearing Finance further explained their consultation regarding the security requirements of the fit-out:
We're also engaging with our security and intelligence agencies, as required, to ensure that we're meeting the right requirements for security for this project. We also have the security construction and equipment committee, and a consultant involved, and they provide specialist expertise for all matters, security and security zoning.
3.26At the public hearing, Finance also explained that while no parliamentarians or their staff are on the CPO Steering Committee, they have been invited to participate in two surveys in the last 12 months which provides an avenue for Finance to incorporate feedback of those who will be using the building into the design of the fit-out.
Cost of the works
3.27The budget is $37.45 million (excluding GST).
3.28Funding for the project will come from the existing Parliamentary Business Resources Act 2017 administered funds.
Revenue
3.29No revenue will be generated by this project.
Public value
3.30The proposed fit-out will provide public value by:
- providing contemporary, flexible and scalable office spaces to allow for future changes to business requirements and Government operations
- providing capabilities currently not available in the existing CPO
- creating anticipated jobs during construction and fit-out works
- making use of existing public transport facilities.
- The increased number of suites will enable South Australian Senators who may currently have offices located near, but not in the current CPO, to relocate into the CPO.
- Finance notes the new, more functional facilities will enable parliamentarians to conduct business from South Australia in a more cost-effective manner.
- The design will prioritise Australian based materials and suppliers to ensure economic benefit for Australian businesses and employees.
Committee comment
3.34The Committee is satisfied that the project has merit in terms of need, scope and cost.
3.35The Committee acknowledges that the Department of Finance explored several options for the CPO function and that the selected property provides full functionality with best value for money and least disruption to staff. The Committee accepts the Department of Finance’s rationale for lease renegotiation in 10 years time but urges caution when assuming this option will provide better value for money compared with a longer lease term.
3.36It is important that the CPO provides safe and secure accommodation for ministers, parliamentarians and staff. Given the nature and frequency of threats to politicians, the Committee noted the efforts made by the Department of Finance to ensure a high level of safety and security.
3.37Security aspects of the fit-out were discussed in the confidential hearings, and therefore this report will not discuss these matters in detail. However, the Committee is concerned about the low level of involvement by the Australian Federal Police (AFP) in the design and planning of the fit-out. Given that the AFP is present in each occupied CPO, the Committee is recommending that the AFP is involved immediately in the design of this fit-out, and at an earlier stage in any future CPO design.
3.38The Committee appreciates the design of the fit-out is ‘future-proofed’ and will be able to accommodate new suites and accompanying workspaces if necessary. The Committee was surprised that South Australian Senators had not been approached about their intention to remain in their current offices or move into the new CPO. The Committee suggests this information could have usefully been drawn upon by the Department of Finance when determining the required scope of the new fit-out, including number of suites.
3.39The Committee appreciates the Department of Finance has and will continue to engage in stakeholder consultation to ensure the proposed fit-out is fit for purpose. The Committee suggests parliamentarians and their staff be better engaged in this process throughout the remainder of the works and in future works in order to ensure the fit-out meets functionality requirements of building users.
3.40The Committee notes the improved surge capacity of the new fit-out will enable cabinet meetings and the hosting of international delegations as needed, bringing the functionality of the South Australian CPO to the same level as other CPOs across Australia.
3.41Having 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.
3.42The Committee recommends that the Department of Finance consult with the Australian Federal Police regarding the security aspects of the fit-out design:
- Immediately, for the proposed works, and
- At a much earlier stage for any CPO fit-out works in the future.
3.43The 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 Finance -Proposed Fit-out of New Commonwealth Parliament Offices at One Festival Tower, Adelaide, South Australia.
3.44Proponent 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.