❓ Opposition questions the government's decision not to purchase Governor Stirling Tower for office accommodation, inquiring about potential cost savings and agency relocation impacts compared to the chosen Dumas House refurbishment and leasing option.
AnsweredQoN 253Legislative Council
QuestionView source ↗
GOVERNMENT OFFICE ACCOMMODATION — DUMAS HOUSE AND HALE HOUSE
I refer to the Premier’s plans to refurbish Dumas House and Hale House and build some new office accommodation. (1) Did the state government consider the option of purchasing Governor Stirling Tower along with 1 and 5 Mill Street when they came up for sale earlier this year or late last year? (2) If no to (1), why not? (3) Which government agencies and ministers would not have been required to move had this option been pursued? (4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE
I refer to the Premier’s plans to refurbish Dumas House and Hale House and build some new office accommodation. (1) Did the state government consider the option of purchasing Governor Stirling Tower along with 1 and 5 Mill Street when they came up for sale earlier this year or late last year? (2) If no to (1), why not? (3) Which government agencies and ministers would not have been required to move had this option been pursued? (4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE
AnswerView source ↗
I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(1) Did the state government consider the option of purchasing Governor Stirling Tower along with 1 and 5 Mill Street when they came up for sale earlier this year or late last year? (2) If no to (1), why not? (3) Which government agencies and ministers would not have been required to move had this option been pursued? (4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(2) If no to (1), why not? (3) Which government agencies and ministers would not have been required to move had this option been pursued? (4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(3) Which government agencies and ministers would not have been required to move had this option been pursued? (4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(1) Did the state government consider the option of purchasing Governor Stirling Tower along with 1 and 5 Mill Street when they came up for sale earlier this year or late last year? (2) If no to (1), why not? (3) Which government agencies and ministers would not have been required to move had this option been pursued? (4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(2) If no to (1), why not? (3) Which government agencies and ministers would not have been required to move had this option been pursued? (4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(3) Which government agencies and ministers would not have been required to move had this option been pursued? (4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(4) Was a financial analysis carried out on the potential savings of this option, compared with the Dumas House, Hale House and 140 William Street option; and, if so, what was the result? (5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(5) Were the properties offered to the state government for purchase; and, if so, what was the price? Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
Hon NORMAN MOORE replied: I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
I thank the honourable member for some notice of the question. (1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(1) No. (2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
(2)–(4) The current lease on office accommodation in Governor Stirling Tower expires in June 2012. A procurement process was commenced under the previous government in January 2008, seeking 30 000 square metres of leased office accommodation for the Department of the Premier and Cabinet and the Department of Treasury and Finance as replacement office accommodation for Governor Stirling Tower. The procurement process was extensive, involving negotiations at different times with two preferred proponents. In March 2009, the procurement process was cancelled. At that time, the then preferred proponent was asking more than $750 per square metre per year. In late 2009, heads of agreement were signed to lease enough space to replace Governor Stirling Tower. These leases were finalised in 2010. A total of 27 850 square metres of office accommodation has been leased—at 140 William Street, 14 600 square metres; and at the Optima Centre, 13 250 square metres. Long-term lease rates have been negotiated in both instances, averaging $520 per square metre per year, for a total of $14.5 million per year. The new fit-out standards will enable around 1 850 workstations in this 27 850 square metres, compared with only 1 250 workstations in the current 25 480 square metres at Governor Stirling Tower. In summary, through better leveraging of government’s considerable buying power, and decentralising some government office accommodation from the Perth central business district into a metropolitan centre—the Optima Centre at Herdsman Business Park—replacement office accommodation for Governor Stirling Tower has been obtained for $14.5 million per year, as opposed to $21 million per year or higher if the government had proceeded with the more expensive Perth CBD lease rates offered in the earlier procurement process, for a saving of at least $6.5 million per year. There is also additional space for a further 600 public sector employees, valued at around $4.7 million per year. Hence, recurrent savings from these first steps will be at least $11 million per year, effective from mid-2012. The procurement of the additional leased space and the decision to retain, refurbish and refit the government-owned Albert Facey House, Dumas House and Hale House, has enabled the introduction of a new precinct approach to the location of agencies. This will deliver significant efficiencies from the co-location of similar agencies. Retention of the government-owned buildings is also a very cost-effective approach to office accommodation, particularly where there is a very long-term requirement for accommodation in that location. (5) No.
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