Infrastructure projects
Georgie CROZIER (Southern Metropolitan) (12:19): (817) My question is to the Treasurer. The Auditor-General in his latest report Major Projects Performance Reporting 2024, released yesterday, has been scathing of the management of several infrastructure projects. The outgoing secretary for health, Professor Euan Wallace, in a letter to the Auditor-General dated 7 February 2025, acknowledges that the public reporting of major capital projects performance is ‘inconsistent’ and that there are ‘opportunities for improvement’, citing that reporting requirements were the remit of Treasury and Finance. Treasurer, what areas have been identified for improvement?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:20): I thank Ms Crozier for her question and obviously thank the Auditor-General for the work, and as reported –
Members interjecting.
Jaclyn SYMES: I value the independent oversight agencies. But you are also entitled to put a position in response to that. DTF’s response to the report is to accept or accept in principle the recommendations, and it is in the report.
Georgie CROZIER (Southern Metropolitan) (12:21): That is a very brief answer. I am not sure that you actually understood the depth of the question and the concerns. Nevertheless, Treasurer, the report showed that the original cost of the Frankston Hospital redevelopment was $562 million. However, it was not published because no budget paper 4 was produced, and it subsequently blew out by 99 per cent to $1.2 billion. Why did the government fail to produce this critical budget document that outlines costs of infrastructure projects to the Victorian taxpayer?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:21): Ms Crozier, in relation to the Frankston Hospital, as is evidenced in the report, the TEI has increased because it now includes procurement issues connected to the PPP: 25 years worth of maintenance, cleaning, gardening and security services. If you look at page 15, the Auditor-General points out that when you change procurement, the TEI obviously goes up.
Georgie Crozier: On a point of order, President, my question was very specific; it was about budget paper 4 – why that was not produced. She did not go anywhere near answering that question.
Harriet Shing interjected.
Georgie Crozier: No, no, Ms Shing, this is in the Auditor’s report. There is no budget paper 4, and the Treasurer has not answered the question.
The PRESIDENT: I think the minister was being relevant to the question.
Georgie CROZIER (Southern Metropolitan) (12:23): I move:
That the Treasurer’s answer be taken into consideration on the next day of meeting.
Motion agreed to.