List of Recommendations

Recommendation 1

2.13

The Committee recommends that, in relation to project approval instruments for future infrastructure projects, the Department of Infrastructure and Regional Development provide explicit advice to its Ministers on whether the requirements of the land transport legislation have been met and, where sufficient information is not available to make such an assessment, identify this in its advice.

Recommendation 2

2.14

The Committee recommends that the Department of Infrastructure and Regional Development only make significant payments when required by a project according to agreed milestones due to the unnecessary interest and holding costs and risks, including unquantified risks, arising from advance payments.

2.15

The Committee recommends that the Department of Infrastructure and Regional Development’s advice in relation to significant payments in advance of project needs should clearly and specifically set out:

the additional interest charges and costs arising from additional Commonwealth borrowing so Ministers are fully informed of costs to the taxpayer if deciding to make advance payments; and

any identified risks and potential risks arising from advance payments so Ministers are fully informed of risks to the Commonwealth if deciding to make advance payments.

Recommendation 3

2.18

The Committee recommends that the Department of Infrastructure and Regional Development review its approach to drafting project approval instruments, to identify any risks that may be relevant to the use of Commonwealth funding and to develop a generic form of conditions that can be included in future instruments to address these risks.

Recommendation 4

2.23

The Committee recommends that the administrative guidelines for loans that the Department of Infrastructure and Regional Development is developing in response to Recommendation 1 in Audit Report No. 38 (2016–17) The Approval and Administration of Commonwealth Funding for the WestConnex project, include a requirement that project proponents identify alternative funding strategies to a Commonwealth loan, as well as information explaining why Commonwealth funding would be the most effective, efficient and economical option.

Recommendation 5

2.31

The Committee recommends that the Auditor-General consider conducting a performance audit into whether the advice supporting the concessional loan provided for the Sunshine Coast Airport expansion project appropriately reflected learnings from the deficiencies in advice identified in Audit Report No. 38 (2016–17) The Approval and Administration of Commonwealth Funding for the WestConnex project.

Recommendation 6

3.13

The Committee recommends that the Department of Infrastructure and Regional Development undertake a review of the Infrastructure Management System to identify ways in which to:

record additional information about the reasons for milestone payments and revisions;

improve the quality of data submissions, including controls and data validation approaches; and

capture information on incremental and cumulative project expenditure by the entities responsible for delivering projects.

Recommendation 7

3.20

The Committee recommends that the Department of the Treasury review the operation of section 20 of the Federal Financial Relations Act 2009, including the discretion applied to recover funding allocated in the future in the case of underspends, unfulfilled project conditions or project cancellation, as well as the current inability to recover interest earned on unspent National Partnership payments.

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