Mr SLIPPER (Parliamentary Secretary to the Minister for Finance and Administration) (5:55 PM) —I move:

These site preparation works are to be undertaken by the Department of Defence at the former naval store site at Ermington in Sydney prior to its disposal. The 19.6 hectare site on the northern shore of the Parramatta River was declared surplus to Defence requirements in 1990. Until then, it was utilised as a naval stores depot and subsequently leased for commercial car storage until the end of 1996. In 1943, the site was resumed by the Commonwealth for Defence purposes. Originally intended as a camp for over 10,000 United States servicemen during the Second World War, it was found to be more useful as a supply store for the United States Army. After the United States Army vacated the site, the Royal Australian Navy utilised the site as a storage facility for non-explosive materials. In 1996, as part of disposal planning, the Department of Defence initiated a proposal to change the land use of the site to one that permitted a range of residential uses. The New South Wales planning minister gazetted the new residential zoning in 1998, permitting development for up to 700 dwellings.

The Department of Defence is keen to ensure that the revenue returned from the sale of the land is optimised, and comprehensive land economic advice confirms that this will be achieved by reducing any uncertainty perceived by prospective purchasers by undertaking these works prior to the sale of the site. The site filling works will raise the land to a level that will permit residential development. This will require the import, placement and compaction of fill. Other works will treat soft alluvial ground conditions in parts of the site to ensure a stable foundation exists which is adequate to support subsequent residential development. The installation of trunk infrastructure, including drainage, roads, sewer, water and telecommunications, will allow the site to be sold in a number of super lots or groups of lots which will further enhance disposal revenue. The outturn cost of the proposed work is $31.6 million. Subject to parliamentary approval, the works will commence at one end of the site early next year and progress across the site. As the stabilisation works are completed, the installation of infrastructure will follow. I commend the motion to the House.

Question resolved in the affirmative.