14 April 2017 – NSW Parliament Wrap Up
It was a week of ups and downs for the Government, with one deal falling through and another significantly exceeding expectations. Wednesday delivered the main action of the week, starting with the news that Google had pulled out of negotiations to redevelop the White Bay Power Station. This is a disappointing outcome for the Government, considering it rejected 13 other bids for the site last year in order to deal directly with the tech giant.
However, things move quickly on Macquarie Street. Later in the day, Premier Gladys Berejiklian and Treasurer Dominic Perrottet announced the $2.6 billion lease of Land & Property Information’s titling and registry service. The Government will enter into an agreement with a majority-Australian consortium—comprised of First State Super, Hastings Funds Management, and the Royal Bank of Scotland—to lease the service for 35 years. The entire sum has already been earmarked for new infrastructure projects … who knows, maybe these projects will be recycled themselves in the future.
Enjoy the long weekend. In the meantime, here’s how the week panned out…
Government reforms steel procurement standards for major projects
Minister for Finance, Services & Property Victor Dominello was joined by Parliamentary Secretary for the Illawarra Gareth Ward on Monday to announce measures designed to enhance the competitiveness of the NSW steel industry. From October this year, all major infrastructure tenders in NSW will have to comply with the new Australian Steel Standard, which guarantees a certain level of quality for steel components. At the moment, some tenderers for infrastructure projects are able to lowball their bid by using foreign steel, leading to safety and quality concerns, and pricing rivals using Australian steel out of the contest.
No increase in number of Sydney taxis for 2017-18
Did you know that Transport for NSW decides how many taxi licenses should be issued in Sydney each year? You do now! On Monday, it was announced that 62 licenses will be issued in 2017-18, the same number that expired in the past 12 months. As a result, there will be no overall increase in the year ahead. The decision follows the recommendations of a 2015 Point to Point Transport Taskforce report, which found that a license freeze would provide greater stability to the industry in the face of disruption.
Macquarie Park transport infrastructure upgrades
Finally, Monday saw Minister for Transport & Infrastructure Andrew Constance release plans for a $60 million bus and road infrastructure upgrade at Macquarie Park. Starting in mid-2017, several roads will be upgraded to support additional bus services to the precinct, in advance of the closure of the Epping to Chatswood rail line in 2018 as part of the Sydney Metro project.
Blacktown Hospital upgrades
On Tuesday, Premier Gladys Berejiklian and Minister for Health Brad Hazzard visited Blacktown Hospital to inspect the site for a new acute services building, to be built in the second stage of the hospital’s redevelopment. The new building will house:
New emergency, intensive care and psychiatric care units
Eight new operating theatres
New maternity and women’s health wards
A new paediatric ward.
The building is part of the Government’s $700 million Blacktown / Mount Druitt Hospitals Expansion Project, due to be completed by 2019. As Minister Hazzard said himself, “Oh what a hospital!”
New road for Sydney Airport precinct
Minister for Roads, Maritime & Freight Melinda Pavey was joined by Federal Minister for Urban Infrastructure Paul Fletcher on Tuesday to announce the commencement of work on the $170 million Airport East project. The project will create a new road underpass linking General Holmes Drive, Botany Road and Wentworth Avenue, reducing congestion for motorists travelling to and from Sydney Airport. Work is due to be completed by 2019. Airport East is part of a suite of road upgrades for the Sydney Airport precinct, including Airport West and Airport North.
$2.6 billion lease of Land & Property Information
The Government’s asset recycling agenda delivered yet another windfall this week, following the lease of Land & Property Information (LPI) to a majority-Australian consortium for $2.6 billion, significantly more than was initially expected. Of this, $1 billion from the deal has been reserved for the Government’s stadia strategy, while the remaining $1.6 billion will be invested in the Restart NSW fund. At least 30 per cent of proceeds will be spent on projects in the state’s regions. A new Registrar General has been appointed by the Government to oversee the transition into private ownership and audit the consortium’s performance. To view a nifty infographic summarising the benefits of the deal, click here.
In case you were wondering, the image above is of LPI’s head office on the corner of Macquarie Street and Prince Albert Road. Last week it was the NSW Industrial Relations Commission, this week LPI…who knows what other Government-owned properties we will show you next!
Fort Denison up for lease
We wouldn’t normally report on minor tenders, but an interesting one was made available this morning. Fort Denison, in the middle of Sydney Harbour, will be up for lease from July this year. The lease is for an initial period of five years, with a five year option for extension. The island is currently operating as a café/restaurant, however other options will be considered.
Australia’s biggest morgue to be built at Lidcombe
Finally, Minister Hazzard ended the working week with an announcement of a different kind. Construction has commenced on a $91.5 million state-of-the-art ‘Forensic Pathology and Coroner’s Court’ (aka morgue) in Lidcombe, on the site of the old Lidcombe Hospital. The new facility will replace the current State Coroner’s Court in Glebe, which has been in operation for 50 years. Apparently, the old morgue couldn’t keep up with demand.