❓ Hon Neil Thomson questions the Department of Finance on specific actions and expenditure to attract Tier 2 construction operators to WA, and the success of these efforts in securing capital works contracts. The answer provides limited specific information, citing ongoing development of initiatives and procurement probity.
AnsweredQoN 2097Legislative Council
QuestionView source ↗
I refer to Finance 2024-25 Budget Paper No 2 Volume 1, Note 1 on page 162, and the whole-of-government and Department activity to increase the State's market capacity to support the Asset Investment Program, and I ask: (a) since the inception of this activity, what specific expenditure and actions/activities have/has the Department of Finance used to attract Tier 2 construction operators into Western Australia (WA); (b) can the Department name Tier 2 operators that have established operations in WA as a result; and (c) what percentage of the $1.5 billion annual pipeline of capital works available in WA have these new operators been able to secure in contracts?
AnswerView source ↗
Answered
17 September 2024
Responded by
Minister for Finance
Response time
9 days
a) The Department of Finance has proactively engaged with local and interstate Tier 1 and Tier 2 contractors, as well as the Master Builders Association and the Australian Construction Association, to discuss matters that impact industry’s ability to increase their capacity in Western Australia.
Initiatives are now being developed for consideration by Government and will be announced in due course.
b) Multiple Tier 1 and 2 contractors have shown interest in upcoming projects, including responding to recent procurement processes. To maintain the highest levels of probity, information relating to live procurement processes are not publicly released.
c) This question appears to refer to the following statements from the budget papers:
‘With the Government investing in record levels of infrastructure, the Department has significantly increased its annual program of work by over 40% in recent years. Since mid-2021, $1.5 billion worth of non-residential infrastructure projects have been delivered, including election commitments and significant upgrades to community infrastructure that deliver on the Government’s objectives and support positive health, education and community outcomes. While market conditions have been challenging, with labour shortages and supply chain disruptions impacting projects, the 2023-24 period is showing signs of improvements within the supply chain and market pricing.’
That statement referred to projects already delivered since 2021 which are prior to the market capacity initiatives commencing.
Initiatives are now being developed for consideration by Government and will be announced in due course.
b) Multiple Tier 1 and 2 contractors have shown interest in upcoming projects, including responding to recent procurement processes. To maintain the highest levels of probity, information relating to live procurement processes are not publicly released.
c) This question appears to refer to the following statements from the budget papers:
‘With the Government investing in record levels of infrastructure, the Department has significantly increased its annual program of work by over 40% in recent years. Since mid-2021, $1.5 billion worth of non-residential infrastructure projects have been delivered, including election commitments and significant upgrades to community infrastructure that deliver on the Government’s objectives and support positive health, education and community outcomes. While market conditions have been challenging, with labour shortages and supply chain disruptions impacting projects, the 2023-24 period is showing signs of improvements within the supply chain and market pricing.’
That statement referred to projects already delivered since 2021 which are prior to the market capacity initiatives commencing.
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