Senate Foreign Affairs, Defence and Trade Legislation Committee, , 6:59:23 to 7:04:41
The department details changes to the list of sites recommended for divestment, including partial divestments for HMAS Penguin and Waradale Barracks to preserve critical operational capability.
Topics: Infrastructure, ADF, Government spending
Speakers: Meghan Quinn, Celia Perkins, Speaker 28, Unknown Speaker, Raff Ciccone
>> Can I ask as well um the audit for this was completed in 2023 and then it was announced and released um earlier this year. Was there any um revalidation of site utilization done in that three-year period?
>> Yes. Uh and we continue to do site validation.
>> Did any site status change between 2023 and 2026?
>> Not significantly. No.
>> So, so every site that was identified and was marked in that audit in 2023 is on the list.
>> Oh, I'm sorry. I misunderstood your question. Um uh Senator um uh the independent audit recommended devestment of um 68 sites. >> Um as you'll know in the government's response to that. Um the the government agreed to the devestment of 67 sites. There was a number of changes that the government agreed to following defense's validation um of that work. uh uh and and they are in order. The the agreement not to devest the pitwater dive annex. So that that reduces your 68 to 67 and of a number of the other sites the government agreed from a full to move from a full devestment to a partial devestment. Okay. Defense undertaking a capability analysis made the made the put the position to government that um there were significant capability impacts for a full devestment and therefore the government agreed to a partial devestment of HMAS Penguin uh where they've agreed to maintain um the operating uh part of the base uh Waridale barracks uh in Adelaide uh because that is an important part of our plan devestment and movement from Kzik barracks uh in a in an agreement with the South Australian government uh and um uh Raph Lavverton uh Point Cook where they've agreed a partial diversity
>> and so so that was the only changes between 2023 and 2026
>> in the devestment recommendations. Yes.
>> Okay. Um has there been any um I guess changes in terms of what that costbenefit analysis is or was that all
done in 2023 as well? Uh, Senator, the um the work that defense undertook before advising government in 2024 revalidated a number of elements of um the work of the independent team and that included uh uh a a number of uh revaluations of key sites so that we could uh go back to government with a more contemporary understanding of likely sales outcomes.
>> So that was 2024. >> That's right. Okay. But nothing since >> since then.
>> Just to be clear as uh as the process progresses um defense is uh working through different uh sites there's kind of different analysis. Um the department of finance is responsible for um devesting the properties. U
>> No, I understand that. And and so as
part of that process, there will be additional uh con consideration of market conditions as part of the sales as consistent with the >> uh overall framework that the Commonwealth has for selling properties. There's a need to update so that you have a a really strong evidence base for market value.
>> Is it possible that market value has dropped?
>> Uh it it it is possible it's gone up. It's possible it's the same. It's possible it's gone down. It's the Australian Australian um uh real estate market is very divergent uh and very you know and these are different properties and and facilities in different locations.
>> Has that been taken into account?
>> So it will be taken into account as
>> but only when it's sold. So only when it
hits the market. So we are working to the government's uh policy direction with instructions uh and clear public policy for us to move forward with uh devestment of 67 sites over time uh in order for that money to be released and reinvested in consistent with the national defense strategy. So that is what we're working to and as part of that process we have go through a a whole series of technical analysis including capability uh workforce consultation uh the transition issues uh in terms of moving sites and then they get transitioned to defense and uh to finance and finance does the sales
process. And last question before I um hand the call to Senator Collins, is defense putting any requirements particularly around the partial devestatures. Um in terms of who that can be sold to?
>> So all all decisions around divestment will be incorporating all the frameworks we we have in government which will include the foreign investment uh review framework, the if there all sorts of uh regulatory frameworks. uh and as part of that process there's also government uh involvement on any restrictions. There will be some uh areas where we need to uh work particularly around um splitting sites where there's uh different operations happening on them because they may currently be on uh one one title and we need to split them if we need to do them. So there's a lot of considerations that of detailed work
Okay. Uh, Senator Collins.