Mr SLIPPER (Parliamentary Secretary to the Minister for Finance and Administration) (4:37 PM) —I move:

The Department of Defence proposes to undertake environmental remediation of the former submarine base at Neutral Bay in Sydney. The 1.8-hectare site was used as a gasworks from 1876 until gas production ceased in 1931 and the Commonwealth acquired it in 1942 for naval operations. In 1967 it was commissioned as HMAS Platypus, the eastern Australian base for the Oberon class submarines, also accommodating a submarine school and the Royal Australian Navy torpedo maintenance engineering facility.

In 1995, in anticipation of the introduction to service of the new Collins class submarines to be based in Western Australia, the site was declared surplus to requirements. Berthing for the Collins class submarines when in Sydney will be provided at Garden Island. HMAS Platypus continued operations until it was formally decommissioned in May 1999. From 1995 until last year contamination testing of the site was undertaken in parallel with comprehensive land use planning studies to determine the future use of the property once it became vacant.

In October 1998, whilst the New South Wales Land and Environment Court approved the future residential use for the land, a condition of approval was that development of the land needed to be substantially commenced within five years, that is, by 13 October 2003. Contamination investigations have confirmed that the site is highly contaminated, primarily from its use as a gasworks, but remediation should minimise the possibility of future liability of the Commonwealth for contamination on the site. It will enable an auditor of contaminated land to certify that the remediated land is suitable for the approved future land use and enable the land to be sold.

Early last year, in consultation with the Public Works Committee, the Department of Defence engaged a remediation contractor, Thiess Environmental Services, to design the remediation solution for the site. The outcome of this initial process was presented to the committee in June last year, and subsequently the committee asked that the project be referred to it for consideration and report to parliament.

Following referral to the committee, a public hearing was held on 25 October last year. The proposed works have been designed to reflect the highest environmental standards of the Commonwealth. Essential components include: demolition of all buildings and structures, excavation, backfilling and compaction of clean fill material, treatment and disposal of contaminated material and treatment of contaminated groundwater. The estimated out turn cost of the proposed works is $16.5 million. In its report the committee has recommended that this project proceed. The Department of Defence agrees with the recommendation of the committee.

Subject to parliamentary approval, the first phase of the works will commence later this year, with the objective of having remediation complete by December next year. The intention to complete the works by this date will satisfy the deferred commencement condition imposed by the Land and Environment Court by enabling the site audit statement to be issued and the site to be sold in time for the purchase of the commenced development prior to 13 October 2003. On behalf of the government I would like to thank the committee for its support. I commend the motion to the House.

Question resolved in the affirmative.