Contents

Membership of the Committee
List of Acronyms
Extract from the Votes and Proceedings of the House of Representatives
List of Recommendations
Chapter 1 Introduction
Chapter 2 The Proposed Works
Chapter 3 Issues and Conclusions
Appendix A – List of Submissions and Exhibits
Appendix B – List of Witnesses
Appendix C – Submission No. 1 from the Department of Defence
Appendix D – Official Transcript of Evidence

Membership of the Committee

Committee Secretariat

List of Acronyms

Extract from the Votes and Proceedings of the House of Representatives

No 138 Dated Thursday, 2 November 2006

5. PUBLIC WORKS—PARLIAMENTARY STANDING COMMITTEE—REFERENCE OF WORK—REDEVELOPMENT OF THE PROPELLANT MANUFACTURING FACILITY AT MULWALA, NSW

Mr Billson (Minister Assisting the Minister for Defence), pursuant to notice, moved—That, in accordance with the provisions of the Public Works Committee Act 1969 , the following proposed work be referred to the Parliamentary Standing Committee on Public Works for consideration and report: Redevelopment of the propellant manufacturing facility at Mulwala, NSW.

Question—put and passed.

List of abbreviations

List of recommendations

3 Issues and Conclusions

Recommendation 1

The Committee recommends that at the time of renegotiating the lease of Mulwala in 2008 between Thales Australia and the Commonwealth, Defence consider bringing rental payments into line with current market rental payments for purpose built buildings.

Recommendation 2

The Committee recommends that Defence consider renegotiating the capability payment paid by the Commonwealth to Thales Australia in recognition that production at the Mulwala facility exceeds the demands of the ADF, and has the capacity to service commercial markets.

Recommendation 3

The Committee recommends that at the earliest opportunity Defence adjust the profit sharing ratio so as to deliver an outcome that is more equitable to the Commonwealth, recognising the improvements in operational efficiencies that the redevelopment provides to the lessee.

Recommendation 4

The Committee recommends that Defence examine how in future hearings associated with major capital works proposals, the quality of evidence can be enhanced in order to make it more comprehensive, and more transparent.

Recommendation 5

The Committee recommends that Defence submit a strategy report to the Committee on how the department proposes to address the issues referred to in Recommendations 1, 2, and 3.

Recommendation 6

The Committee recommends that the redevelopment of the propellant manufacturing facility at Mulwala proceed at an estimated cost of $338.7 million, excluding GST.

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