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Canberra Today 12°/16° | Saturday, March 30, 2024 | Digital Edition | Crossword & Sudoku

Barr tests the market

ACT Government has begun testing the market for new government office space in Gungahlin and Civic.

Deputy Chief Minister Andrew Barr recently announced the Government’s immediate priority was delivering the Gungahlin project.

“We will shortly invite organisations to register their interest in designing and building the office block proposed for Gungahlin as well as the one proposed for the city to the specifications already established by our consulting team,” he said.

“After exploring a range of financing and ownership options for new accommodation, our consultants have advised the most cost effective way to do this is for the Government to own and build the city office block.  I want this advice tested in the marketplace.

“The ACT Property Council has stated very strongly that their members can meet the Government’s accommodation needs in Gungahlin and Civic in a cost effective manner by building and owning the properties which the ACT Government would rent for a period of 25 years.”

Property Council ACT executive director, Catherine Carter, said that while the property industry has always been supportive of the ACT public service being centrally located in better quality office accommodation, there have been concerns about the delivery model initially proposed by the ACT Government.

“The ACT Government was forecasting that the Civic project alone would cost $432 million.

“A project of that size is extremely significant and very expensive, as well as being the largest infrastructure project ever undertaken by the ACT Government.

“For these reasons alone, it is appropriate that a high degree of scrutiny and independent analysis be undertaken to ensure that taxpayers and the community receive significant benefit.”

“It is highly unusual for governments, including the Commonwealth, to build, own and manage their own office buildings.

“This is also generally true for large banks, mining companies and other corporates.

“The reason for this is simple: it is not core business for governments and major companies, and experience has found that the property sector can deliver better, more cost-efficient outcomes.”

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Ian Meikle, editor

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