Future Rent

In its submission to the inquiry, DITR outlined the rental costs, per square metre per annum, for each of the four buildings on Allara Street which the Department presently occupies.¹

Further to the questions asked on costing and security matters at the confidential brief, at the hearing the Committee requested that the Department supply it with written details of the rental rate for the proposed new building.²

Size of Building

DITR undertook to provide the Committee with that information. The figure was later supplied to the Committee on a confidential basis. The Committee was satisfied that the rental figure was within the acceptable range for market rents on new, A-grade buildings in Civic.

According to written evidence received from the Community and Public Sector Union (CPSU), a small percentage of staff expressed concern that the proposed relocation from office space totalling 23, 353 square metres of NLA, to a building of 21, 750 square metres NLA will not provide adequate space.³

The Committee asked DITR if the reduced space available in the new building will have an adverse impact on staff amenity.⁴

DITR replied that the new building will offer efficiencies in space at the same time as improving amenities for staff.⁵

The Department explained that the current buildings are configured awkwardly:

“One of them has a long curve along its full length, so in trying to design the number of workstations that fit there it is a matter of constantly adjusting for the length of the curve. Another [our central building] has a very small floor plate – 830 square metres…once you take out the central lift core, that enables you to put in one office and a set of workstations, plus a little bit over-but not enough to put in anything useful.”⁶

The new building, whilst approximately 1, 600 square metres smaller in area than the four buildings combined, will make more effective use of the space available:

“The amount of space we have to set aside [now] for people just walking around in is about 6, 500 square metres…In the new building, that will fall to about 3, 800 metres – more than making up for the gap in overall net lettable area.”⁷

Further, the consolidation of four reception and ground floor foyer areas into a single entry point, and the movement of record storage from the floors to the basement will create additional space.⁸

There will be an overall increase in useable space of approximately 10 per cent. This space will be diverted, into more meeting rooms, extra car, motorbike and bicycle parking spaces, and larger amenities rooms.⁹

Workstations

Given the overall decrease in space, the Committee sought clarification from the Department on whether the workstation space of staff members would decrease or increase in the new building.¹⁰

DITR affirmed that there will be an increase from 7.8 to 8 square metres per individual workstation.¹¹

The Department also noted its intention to set up trial workstations for staff to provide feedback on.¹²

Future Staffing Levels

In view of the overall decrease in size of the new building, the Committee was interested to learn what the growth rate of the Department has been in the last decade and if the proposed building will be able to accommodate any future growth in staffing numbers.¹³

DITR responded that staffing levels had remained fairly static in recent years:

“…the general trend has been for it to be a bit over 1, 000.”¹⁴

The Department said that it expects to accommodate 1, 350 workstations and offices, and at this stage only 1, 240 are expected to move into the proposed building.¹⁵

The Committee also wished to know what DITR intends to do in the event that there is a reduction in staffing levels and surplus space becomes available in the new building.¹⁶ The Department indicated that this was an unlikely scenario, however:

“We do have a capacity written into the contractual negotiations with the developer to sublease parts of the building.”¹⁷

Optional Floor

DITR’s main submission states that:

“An additional optional floor may be constructed. The decision to construct the optional floor would be made by February 2005.”¹⁸

At the hearing, the Committee enquired whether the Department had decided to construct an additional floor.¹⁹

DITR informed the Committee that it does not envisage the need for an extra floor at this stage and has advised the developer to that effect.²⁰

Re-Use of Existing Furniture

According to the main submission, DITR intends to re-use existing joinery and loose furniture items where appropriate.²¹

At the hearing, the Committee asked the Department if a furniture audit had been conducted. DITR responded that an initial study had been made. The Committee expressed concern about the impact on the project budget if this line item were underestimated. The Department indicated that it also had an annual budget for updating and replacing furniture, and:

“…it would have to come out of that.”.²²

Energy Conservation

The main submission details a range of measures which DITR intends to install in its new premises to minimise energy usage and operating costs.²³

Australian Greenhouse Office and Green Leases

According to the submission received from the Australian Greenhouse Office (AGO), the new DITR building will achieve an energy score equivalent to a 4 ½-star rating under the Australian Building Greenhouse Rating (ABGR) scheme.²⁴

At the hearing, the Department confirmed that the ABGR scheme requires that an audit be undertaken 12 months into the occupancy to ensure that the energy rating is being maintained at that level.²⁵

Given that the Attorney-General’s Department and the Department of Prime Minister and Cabinet, both of which brought works before the Committee in late 2004, have signed Green Leases with the AGO, the Committee was interested to learn whether DITR had considered signing a Green Lease Schedule.²⁶

DITR stated that its lease with the developer does include a schedule:

“…which requires not only the installation of the energy saving equipment in the first place but also that they maintain that equipment to ensure that the ongoing advantages of the energy saving features of the building are achieved and maintained throughout the life of the building.”²⁷

Cost Benefits

n DITR’s opening statement at the hearing, the Department emphasised the superior environmental features of the new building, which will include solar hot water panels and a range of water saving measures such as the use of collected rainwater for irrigation and toilets, and water-free urinals.²⁸

The Committee requested that DITR supply it with further written information on the cost benefits that will be achieved by the installation and implementation of the solar panels and the water-saving initiatives.²⁹ The Department later provided the Committee with commercial-in-confidence material detailing the simple payback periods for the solar panelling and water saving equipment. The figures provided to the Committee do not reflect any possible future increase in the cost of energy and water over the life of the building and, therefore, in some cases, do not appear to be cost-effective. However, the Committee is supportive of the efforts made to minimise energy and water consumption, and to adhere to the Government’s green building initiatives.