A parliamentary question regarding the Department of Health's lease arrangements for office spaces in Subiaco and Herdsman, questioning the cost-effectiveness and transparency of the decisions. The Minister defends the new lease by citing increased staff and substandard existing facilities.

AnsweredQoN 123Legislative Assembly
Asked
1 April 2008
Portfolio
Health

QuestionView source ↗

DEPARTMENT OF HEALTH — ALVAN STREET AND CENTRO AVENUE PREMISES LEASE COSTS
I refer to the minister dodging two opposition questions on arrangements for new Department of Health offices. I refer also to the fact that the department is, at this stage, retaining the lease on Neale Fong’s former offices at Alvan Street and Centro Avenue, Subiaco, and is now spending an additional $1.3 million a year on rentals and outgoings, plus an undetermined amount to fit-out new offices to house health department staff displaced by Dr Fong’s former staff. (1) Why is the department keeping the lease arrangements on the controversial Subiaco offices while forking out an additional $1.3 million, plus fit-out costs, on new premises to house staff who already are accommodated at Royal Street? (2) How will the Subiaco offices be utilised, or will they remain a vacant, financial black hole? (3) Will the minister explain how the shifting of staff from publicly controversial offices, associated with one of the minister’s greatest failures, while shifting other staff to new offices that until now he has kept secret is not an attempt at spin when the new arrangement is actually costing taxpayers even more? Mr J.A. McGINTY

AnswerView source ↗

(1)-(3) The Department of Health has entered into a lease arrangement for 67 Walters Drive, Herdsman. The need for this accommodation is driven by three factors. Firstly, 160 additional employees will be employed by the Department of Health as a result of the e-health WA program. This increase in resourcing figures is part of the e-health WA business case and is the expected number of employees who will be required to deliver the program over the next 10 years. Secondly, up to 60 officers who are currently working in substandard accommodation must be accommodated. Those substandard properties are located at Newcastle Street, which is the location of the Corporate Governance Directorate, and Fairfield Street, which houses the tobacco control branch and the meat safety branch of the Department of Health. Those properties will be sold once they are vacated. Thirdly, there is a need to accommodate the cancer and palliative care network officers who are currently located in R-block at Sir Charles Gairdner Hospital, which is an old building that will be demolished as part of the QEII redevelopment. The Deputy Leader of the Opposition is wrong to link the Alvan Street premises with the Herdsman premises. The Deputy Leader of the Opposition was trotting around among the media trying to flog this story recently and he picked out an unfortunate reporter from the Sunday Times who swallowed it hook, line and sinker as a result of the Deputy Leader of the Opposition’s misrepresentations. The total lease space at the Herdsman property is 3 614 square metres, with annual lease payments of $1.3 million, including outgoings of $253 522. The Director General of the Department of Health and his immediate staff have moved from the Alvan Street premises back into the Department of Health facility in Royal Street, East Perth. Twenty-seven full-time equivalent staff from the Health Reform Implementation Taskforce are currently accommodated in the Alvan Street property. The time frame for relocating these staff from Royal Street is the end of July 2008 at the earliest, depending upon the timing of the relocation of other hospital staff into Royal Street. As I have indicated, the director general and his immediate office staff moved back into the Royal Street property on 20 March 2008. It can be seen that the Department of Health either owns or leases a very significant number of properties, other than hospitals, for the purpose of housing the approximately 37 000 staff who are employed by the department. The arrangements to enter into the Herdsman lease, which the Deputy Leader of the Opposition seems to want to link to Alvan Street, was substantially concluded late last year prior to any significant changes being made, including the relocation of people from the offices in Alvan Street. The Department of Health leases properties at Albert Facey House, Eastpoint Plaza, Harvest Terrace, Centro Avenue in Subiaco, Alvan Street and 81 St Georges Terrace. They are the properties that are immediately available in the central city area. A vast number of other properties are leased for the purposes of housing Department of Health employees throughout Western Australia.
(1) Why is the department keeping the lease arrangements on the controversial Subiaco offices while forking out an additional $1.3 million, plus fit-out costs, on new premises to house staff who already are accommodated at Royal Street? (2) How will the Subiaco offices be utilised, or will they remain a vacant, financial black hole? (3) Will the minister explain how the shifting of staff from publicly controversial offices, associated with one of the minister’s greatest failures, while shifting other staff to new offices that until now he has kept secret is not an attempt at spin when the new arrangement is actually costing taxpayers even more? Mr J.A. McGINTY replied: (1)-(3) The Department of Health has entered into a lease arrangement for 67 Walters Drive, Herdsman. The need for this accommodation is driven by three factors. Firstly, 160 additional employees will be employed by the Department of Health as a result of the e-health WA program. This increase in resourcing figures is part of the e-health WA business case and is the expected number of employees who will be required to deliver the program over the next 10 years. Secondly, up to 60 officers who are currently working in substandard accommodation must be accommodated. Those substandard properties are located at Newcastle Street, which is the location of the Corporate Governance Directorate, and Fairfield Street, which houses the tobacco control branch and the meat safety branch of the Department of Health. Those properties will be sold once they are vacated. Thirdly, there is a need to accommodate the cancer and palliative care network officers who are currently located in R-block at Sir Charles Gairdner Hospital, which is an old building that will be demolished as part of the QEII redevelopment. The Deputy Leader of the Opposition is wrong to link the Alvan Street premises with the Herdsman premises. The Deputy Leader of the Opposition was trotting around among the media trying to flog this story recently and he picked out an unfortunate reporter from the Sunday Times who swallowed it hook, line and sinker as a result of the Deputy Leader of the Opposition’s misrepresentations. The total lease space at the Herdsman property is 3 614 square metres, with annual lease payments of $1.3 million, including outgoings of $253 522. The Director General of the Department of Health and his immediate staff have moved from the Alvan Street premises back into the Department of Health facility in Royal Street, East Perth. Twenty-seven full-time equivalent staff from the Health Reform Implementation Taskforce are currently accommodated in the Alvan Street property. The time frame for relocating these staff from Royal Street is the end of July 2008 at the earliest, depending upon the timing of the relocation of other hospital staff into Royal Street. As I have indicated, the director general and his immediate office staff moved back into the Royal Street property on 20 March 2008. It can be seen that the Department of Health either owns or leases a very significant number of properties, other than hospitals, for the purpose of housing the approximately 37 000 staff who are employed by the department. The arrangements to enter into the Herdsman lease, which the Deputy Leader of the Opposition seems to want to link to Alvan Street, was substantially concluded late last year prior to any significant changes being made, including the relocation of people from the offices in Alvan Street. The Department of Health leases properties at Albert Facey House, Eastpoint Plaza, Harvest Terrace, Centro Avenue in Subiaco, Alvan Street and 81 St Georges Terrace. They are the properties that are immediately available in the central city area. A vast number of other properties are leased for the purposes of housing Department of Health employees throughout Western Australia.
(2) How will the Subiaco offices be utilised, or will they remain a vacant, financial black hole? (3) Will the minister explain how the shifting of staff from publicly controversial offices, associated with one of the minister’s greatest failures, while shifting other staff to new offices that until now he has kept secret is not an attempt at spin when the new arrangement is actually costing taxpayers even more? Mr J.A. McGINTY replied: (1)-(3) The Department of Health has entered into a lease arrangement for 67 Walters Drive, Herdsman. The need for this accommodation is driven by three factors. Firstly, 160 additional employees will be employed by the Department of Health as a result of the e-health WA program. This increase in resourcing figures is part of the e-health WA business case and is the expected number of employees who will be required to deliver the program over the next 10 years. Secondly, up to 60 officers who are currently working in substandard accommodation must be accommodated. Those substandard properties are located at Newcastle Street, which is the location of the Corporate Governance Directorate, and Fairfield Street, which houses the tobacco control branch and the meat safety branch of the Department of Health. Those properties will be sold once they are vacated. Thirdly, there is a need to accommodate the cancer and palliative care network officers who are currently located in R-block at Sir Charles Gairdner Hospital, which is an old building that will be demolished as part of the QEII redevelopment. The Deputy Leader of the Opposition is wrong to link the Alvan Street premises with the Herdsman premises. The Deputy Leader of the Opposition was trotting around among the media trying to flog this story recently and he picked out an unfortunate reporter from the Sunday Times who swallowed it hook, line and sinker as a result of the Deputy Leader of the Opposition’s misrepresentations. The total lease space at the Herdsman property is 3 614 square metres, with annual lease payments of $1.3 million, including outgoings of $253 522. The Director General of the Department of Health and his immediate staff have moved from the Alvan Street premises back into the Department of Health facility in Royal Street, East Perth. Twenty-seven full-time equivalent staff from the Health Reform Implementation Taskforce are currently accommodated in the Alvan Street property. The time frame for relocating these staff from Royal Street is the end of July 2008 at the earliest, depending upon the timing of the relocation of other hospital staff into Royal Street. As I have indicated, the director general and his immediate office staff moved back into the Royal Street property on 20 March 2008. It can be seen that the Department of Health either owns or leases a very significant number of properties, other than hospitals, for the purpose of housing the approximately 37 000 staff who are employed by the department. The arrangements to enter into the Herdsman lease, which the Deputy Leader of the Opposition seems to want to link to Alvan Street, was substantially concluded late last year prior to any significant changes being made, including the relocation of people from the offices in Alvan Street. The Department of Health leases properties at Albert Facey House, Eastpoint Plaza, Harvest Terrace, Centro Avenue in Subiaco, Alvan Street and 81 St Georges Terrace. They are the properties that are immediately available in the central city area. A vast number of other properties are leased for the purposes of housing Department of Health employees throughout Western Australia.
(3) Will the minister explain how the shifting of staff from publicly controversial offices, associated with one of the minister’s greatest failures, while shifting other staff to new offices that until now he has kept secret is not an attempt at spin when the new arrangement is actually costing taxpayers even more? Mr J.A. McGINTY replied: (1)-(3) The Department of Health has entered into a lease arrangement for 67 Walters Drive, Herdsman. The need for this accommodation is driven by three factors. Firstly, 160 additional employees will be employed by the Department of Health as a result of the e-health WA program. This increase in resourcing figures is part of the e-health WA business case and is the expected number of employees who will be required to deliver the program over the next 10 years. Secondly, up to 60 officers who are currently working in substandard accommodation must be accommodated. Those substandard properties are located at Newcastle Street, which is the location of the Corporate Governance Directorate, and Fairfield Street, which houses the tobacco control branch and the meat safety branch of the Department of Health. Those properties will be sold once they are vacated. Thirdly, there is a need to accommodate the cancer and palliative care network officers who are currently located in R-block at Sir Charles Gairdner Hospital, which is an old building that will be demolished as part of the QEII redevelopment. The Deputy Leader of the Opposition is wrong to link the Alvan Street premises with the Herdsman premises. The Deputy Leader of the Opposition was trotting around among the media trying to flog this story recently and he picked out an unfortunate reporter from the Sunday Times who swallowed it hook, line and sinker as a result of the Deputy Leader of the Opposition’s misrepresentations. The total lease space at the Herdsman property is 3 614 square metres, with annual lease payments of $1.3 million, including outgoings of $253 522. The Director General of the Department of Health and his immediate staff have moved from the Alvan Street premises back into the Department of Health facility in Royal Street, East Perth. Twenty-seven full-time equivalent staff from the Health Reform Implementation Taskforce are currently accommodated in the Alvan Street property. The time frame for relocating these staff from Royal Street is the end of July 2008 at the earliest, depending upon the timing of the relocation of other hospital staff into Royal Street. As I have indicated, the director general and his immediate office staff moved back into the Royal Street property on 20 March 2008. It can be seen that the Department of Health either owns or leases a very significant number of properties, other than hospitals, for the purpose of housing the approximately 37 000 staff who are employed by the department. The arrangements to enter into the Herdsman lease, which the Deputy Leader of the Opposition seems to want to link to Alvan Street, was substantially concluded late last year prior to any significant changes being made, including the relocation of people from the offices in Alvan Street. The Department of Health leases properties at Albert Facey House, Eastpoint Plaza, Harvest Terrace, Centro Avenue in Subiaco, Alvan Street and 81 St Georges Terrace. They are the properties that are immediately available in the central city area. A vast number of other properties are leased for the purposes of housing Department of Health employees throughout Western Australia.
Mr J.A. McGINTY replied: (1)-(3) The Department of Health has entered into a lease arrangement for 67 Walters Drive, Herdsman. The need for this accommodation is driven by three factors. Firstly, 160 additional employees will be employed by the Department of Health as a result of the e-health WA program. This increase in resourcing figures is part of the e-health WA business case and is the expected number of employees who will be required to deliver the program over the next 10 years. Secondly, up to 60 officers who are currently working in substandard accommodation must be accommodated. Those substandard properties are located at Newcastle Street, which is the location of the Corporate Governance Directorate, and Fairfield Street, which houses the tobacco control branch and the meat safety branch of the Department of Health. Those properties will be sold once they are vacated. Thirdly, there is a need to accommodate the cancer and palliative care network officers who are currently located in R-block at Sir Charles Gairdner Hospital, which is an old building that will be demolished as part of the QEII redevelopment. The Deputy Leader of the Opposition is wrong to link the Alvan Street premises with the Herdsman premises. The Deputy Leader of the Opposition was trotting around among the media trying to flog this story recently and he picked out an unfortunate reporter from the Sunday Times who swallowed it hook, line and sinker as a result of the Deputy Leader of the Opposition’s misrepresentations. The total lease space at the Herdsman property is 3 614 square metres, with annual lease payments of $1.3 million, including outgoings of $253 522. The Director General of the Department of Health and his immediate staff have moved from the Alvan Street premises back into the Department of Health facility in Royal Street, East Perth. Twenty-seven full-time equivalent staff from the Health Reform Implementation Taskforce are currently accommodated in the Alvan Street property. The time frame for relocating these staff from Royal Street is the end of July 2008 at the earliest, depending upon the timing of the relocation of other hospital staff into Royal Street. As I have indicated, the director general and his immediate office staff moved back into the Royal Street property on 20 March 2008. It can be seen that the Department of Health either owns or leases a very significant number of properties, other than hospitals, for the purpose of housing the approximately 37 000 staff who are employed by the department. The arrangements to enter into the Herdsman lease, which the Deputy Leader of the Opposition seems to want to link to Alvan Street, was substantially concluded late last year prior to any significant changes being made, including the relocation of people from the offices in Alvan Street. The Department of Health leases properties at Albert Facey House, Eastpoint Plaza, Harvest Terrace, Centro Avenue in Subiaco, Alvan Street and 81 St Georges Terrace. They are the properties that are immediately available in the central city area. A vast number of other properties are leased for the purposes of housing Department of Health employees throughout Western Australia.
(1)-(3) The Department of Health has entered into a lease arrangement for 67 Walters Drive, Herdsman. The need for this accommodation is driven by three factors. Firstly, 160 additional employees will be employed by the Department of Health as a result of the e-health WA program. This increase in resourcing figures is part of the e-health WA business case and is the expected number of employees who will be required to deliver the program over the next 10 years. Secondly, up to 60 officers who are currently working in substandard accommodation must be accommodated. Those substandard properties are located at Newcastle Street, which is the location of the Corporate Governance Directorate, and Fairfield Street, which houses the tobacco control branch and the meat safety branch of the Department of Health. Those properties will be sold once they are vacated. Thirdly, there is a need to accommodate the cancer and palliative care network officers who are currently located in R-block at Sir Charles Gairdner Hospital, which is an old building that will be demolished as part of the QEII redevelopment. The Deputy Leader of the Opposition is wrong to link the Alvan Street premises with the Herdsman premises. The Deputy Leader of the Opposition was trotting around among the media trying to flog this story recently and he picked out an unfortunate reporter from the Sunday Times who swallowed it hook, line and sinker as a result of the Deputy Leader of the Opposition’s misrepresentations. The total lease space at the Herdsman property is 3 614 square metres, with annual lease payments of $1.3 million, including outgoings of $253 522. The Director General of the Department of Health and his immediate staff have moved from the Alvan Street premises back into the Department of Health facility in Royal Street, East Perth. Twenty-seven full-time equivalent staff from the Health Reform Implementation Taskforce are currently accommodated in the Alvan Street property. The time frame for relocating these staff from Royal Street is the end of July 2008 at the earliest, depending upon the timing of the relocation of other hospital staff into Royal Street. As I have indicated, the director general and his immediate office staff moved back into the Royal Street property on 20 March 2008. It can be seen that the Department of Health either owns or leases a very significant number of properties, other than hospitals, for the purpose of housing the approximately 37 000 staff who are employed by the department. The arrangements to enter into the Herdsman lease, which the Deputy Leader of the Opposition seems to want to link to Alvan Street, was substantially concluded late last year prior to any significant changes being made, including the relocation of people from the offices in Alvan Street. The Department of Health leases properties at Albert Facey House, Eastpoint Plaza, Harvest Terrace, Centro Avenue in Subiaco, Alvan Street and 81 St Georges Terrace. They are the properties that are immediately available in the central city area. A vast number of other properties are leased for the purposes of housing Department of Health employees throughout Western Australia.
It can be seen that the Department of Health either owns or leases a very significant number of properties, other than hospitals, for the purpose of housing the approximately 37 000 staff who are employed by the department. The arrangements to enter into the Herdsman lease, which the Deputy Leader of the Opposition seems to want to link to Alvan Street, was substantially concluded late last year prior to any significant changes being made, including the relocation of people from the offices in Alvan Street. The Department of Health leases properties at Albert Facey House, Eastpoint Plaza, Harvest Terrace, Centro Avenue in Subiaco, Alvan Street and 81 St Georges Terrace. They are the properties that are immediately available in the central city area. A vast number of other properties are leased for the purposes of housing Department of Health employees throughout Western Australia.

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