Chapter 1
Introduction
Referral of the inquiry
1.1
On 13 August 2015, the Senate moved that the decision to commit funding
to the Perth Freight Link Project be referred to the Rural and Regional Affairs
and Transport References Committee (the committee) for inquiry and report by
26 November 2015, with particular reference to:
-
the decision-making process that led to the announcement that the Perth
Freight Link would receive Commonwealth funding,
-
the information relied upon by state and Commonwealth governments
informing the decision to fund this project,
-
the importance of transparency of decision-making in relation to
infrastructure decisions,
-
evaluation of options for managing growth in the Perth freight task, and
-
any related matters.[1]
1.2
On 12 November 2015, the Senate granted an extension of time for
reporting until 25 March 2016.[2]
On 29 February 2016 the Senate granted a further extension of time to report to
29 April 2016.[3]
Conduct of the Inquiry
1.3
The committee advertised the inquiry on its website and in The Australian
newspaper. The committee also directly contacted a number of organisations and
individuals to invite them to make submissions by 13 September 2015.
1.4
The committee received 228 public submissions from individuals and
organisations, which are listed at Appendix 1 of this report. The full
submissions and other information authorised for publication by the committee
can be accessed through the committee's website at www.aph.gov.au/Parliamentary_Business/Committees/
Senate/Rural_and_Regional_Affairs_and_Transport/Perth_Freight_Link.
1.5
The committee held two public hearings in Western Australia, the first
at Fremantle on 7 October 2015, and the second at Kwinana on 23 March
2016. A list of witnesses who gave evidence at this hearing can be found at Appendix
2 of this report, and Hansard transcripts of evidence are available on the
committee website.
Participation of the Western
Australian government
1.6
The committee invited relevant Western Australian government agencies to
make submissions to this inquiry, as well as to give evidence at the public hearings
in Fremantle and Kwinana. These invitations were declined. This has meant that
in considering the state government's involvement in the development and
implementation of the Freight Link proposal, the committee has been obliged to rely
upon publically available material relating to the project published by the Western
Australian government.
1.7
The committee notes that the Commonwealth Department of Infrastructure
and Regional Development (department) made a formal submission to this inquiry
and sent officers to give evidence at the public hearing in Fremantle, both of
which provided limited evidence about the Western Australian government's
involvement in the Freight Link proposal.[4]
Availability of the full Business
Case for the Freight Link
1.8
The full Business Case for the Freight Link that was developed by the
Commonwealth and state governments is not publically available. However, a
30-page executive summary that did not include 'commercially sensitive
material' was released in December 2014.[5]
1.9
The full Business Case informed the Infrastructure Australia Board's
assessment of the Freight Link proposal at its meeting over 7 and 8 May
2015. Infrastructure Australia published their Assessment Brief for the project
on 17 August 2015.[6]
1.10
On 10 August 2015 the Senate passed an order for the production of
documents relating to the Freight Link, including the full Business Case, which
stated:
-
That the Senate notes the comments made by Productivity Commissioner, Mr
Peter Harris, who said 'we treat consumers like idiots if we don't publish
[cost benefit studies]' in relation to Commonwealth funding of major
infrastructure projects; and
-
there be laid on the table by the Minister representing the Minister for
Infrastructure and Regional Development, no later than 5pm on Tuesday, 11 August 2015,
the following documents held or prepared by Infrastructure Australia:
-
the Infrastructure Australia Board evaluation of the Perth Freight Link
project that occurred at its meeting on 7 May 2015,
-
any business case presented by the Western Australian Government for the
Perth Freight Link project,
- any other documents in relation to the Perth Freight Link project
provided to Infrastructure Australia by the Western Australian Government, and
-
any assessment of the proposed Perth Freight Link undertaken by
Infrastructure Australia, including the priority of this project as compared to
other projects.[7]
1.11
Mr Philip Davies, Chief Executive Officer, Infrastructure Australia, responded
to this order in a letter addressed to the Clerk of the Senate dated
10 August 2015, which was tabled in the Senate the following day.[8]
This letter raised a public interest immunity claim against the provision of
the requested documents, stating that:
As per similar motions in the past, I have sought the views
of the Western Australian Government on this matter. The advice from
Mr Reece Waldock, Director General of the Department of Transport,
Commissioner for Main Roads Western Australia and Chief Executive Officer of
the Public Transport Authority included significant objection to the release of
documents at this time on the basis of its commercial in confidence nature and
the potential impact any release may have on Commonwealth-State Relations.[9]
Note on submissions received by the
committee
1.12
The committee notes the overwhelming opposition to the Perth Freight
Link in submissions it has received, particularly those made by local
governments, and the many individuals and various communities that would be
negatively affected by the project.
1.13
Of the 228 public submissions received, only 5 were in favour of the
project proceeding. These included submissions made by the department,
Infrastructure Australia and the City of Melville, as well as some private
individuals.
Structure of this report
1.14
This report consists of 5 chapters:
-
Chapter 1 (this chapter) sets out administrative matters relating
to the inquiry;
-
Chapter 2 provides a background to the Perth Freight Link
proposal, including the Commonwealth's account of its development, how it would
be funded, and what progress has been made on its implementation to date. It
also outlines the proposed benefits of the project as stated by its proponents,
the Commonwealth and Western Australian governments;
-
Chapter 3 interrogates the Commonwealth's account of the
development of the Freight Link proposal and its announcement in the 2014-15
Budget, as outlined in chapter 2. It then looks closely at the claims about the
costs and proposed benefits of the project, as outlined in the Executive
Summary of the Business Case, and considers the many ongoing uncertainties
about the project's implementation;
-
Chapter 4 examines concerns raised by local governments and
communities about the Freight Link, including the lack of consultation
undertaken by the Commonwealth and state governments, potential damage to the
environment and heritage sites, and the negative effects it would have on the
city of Fremantle; and
-
Chapter 5 presents the views and recommendations of the committee.
Acknowledgements
1.15
The committee thanks all individuals and organisations that participated
in the inquiry by making submissions and giving evidence at public hearings. In
particular, the committee would like to recognise the many individuals who
informed the committee's work by making submissions.
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