Mrs MOYLAN (4:57 PM) —On behalf of the Parliamentary Standing Committee on Public Works, I present the first report of the committee for 2002 relating to the proposed common use infrastructure on Christmas Island.

Ordered that the report be printed.

Mrs MOYLAN —by leave—The report specifically deals with the improvements to Christmas Island Airport, in particular the extension of the airport runway 460 metres north and 90 metres south. The current runway length and strength are inadequate for the freighter aircraft 747-400 and the Antonov required for the space launch facility. Without the proposed airport upgrade, the Asia Pacific Space Centre operations cannot proceed. The estimated cost of the airport upgrade is $51.3 million. I should note that on 9 August 2001 a similar proposal was referred to the committee by the Department of Transport and Regional Services. That reference lapsed as a result of the prorogation of parliament on 8 October. That proposal included an airport upgrade, an additional port on the east coast and a new link road from the east coast to Lily Beach Road. Prior to prorogation, the department applied to the committee for concurrent documentation. The committee granted its approval in September 2001 on the grounds of the urgent nature of the project. Such approval allowed the department to undertake preliminary planning associated with the project.

The proposal referred to the committee on 21 March 2002 deals only with upgrades to Christmas Island Airport and does not include the additional port and new link road. These two projects were incorporated into the infrastructure work associated with the Christmas Island immigration reception and processing centre and were the subject of an expediency motion moved in the House of Representatives the same day by the Parliamentary Secretary to the Minister for Finance and Administration. The airport upgrade will provide improved services for the Christmas Island community and a facility for large-bodied aircraft. Attracting large-bodied aircraft is essential to the Christmas Island economy. The airport generates revenue from landing charges based on aircraft tonnage. Present forecasts indicate that the number of aircraft using the airport would rise from 423 to approximately 1,350 in 2006.

The proposal as presented to the committee posed three major challenges. The first challenge was the lack of emergency services at the airport, including fire tenders and associated vehicle storage facilities. While these services were included in the original referral in August last year, the Civil Aviation Safety Authority—CASA—considered that these services would not now be required because of low airport utilisation. The committee does not accept CASA's exemption on the firefighting services, particularly as the upgraded airport is designed to cater for increased traffic associated with the operations of the Asia Pacific Space Centre. As a result, the committee has recommended that an urgent approach be made by the Department of Transport and Regional Services to CASA to remove its exemption of the provision of emergency services to the airport.

The second area of concern relates to the operation of Christmas Island Phosphates. This company is currently the largest business and employer on the island. The committee is keen to ensure that employment prospects for the local community are not adversely affected by any loss of potential mining areas as a consequence of the airport upgrade. To this end, the committee has recommended that the Department of Transport and Regional Services enter into a dialogue with Christmas Island Phosphates in order to reach a compromise with regard to the removal of phosphate deposits from areas affected by the airport improvements. The company's activities, however, should not impact on the cost or the time frame for this project.

The third issue relates to the possible impact on the local infrastructure and services as a result of an anticipated increase in workers associated with the public works projects. From observation and discussion with the local community, the committee was left in no doubt that any inflow of numbers of people to the island could impose a serious burden on services. The committee has therefore recommended that the Minister for Regional Services, Territories and Local Government consider a social impact study and, if necessary, institute action to upgrade the island's infrastructure and services to ensure that the local community is in no way disadvantaged by an increase in the population.

The committee supports this project and believes that, irrespective of the space centre proceeding, an upgraded airport for Christmas Island would help to decrease the isolation of the local community by improving its air services. The committee also expects that the project would generate employment opportunities for the local community as well as developing the local skills base. The committee has recommended, therefore, that the proposed common use infrastructure project on Christmas Island proceed, at a cost of $51.3 million, pending approval of the draft environmental impact statement and the fulfilment of the recommendations made in the report.

Many people assisted the committee during the inspections and the public hearing on Christmas Island. In particular, I mention the exceptional effort of the Administrator, Mr Bill Taylor, and thank him and his staff for their assistance. As many colleagues would remember, Mr Taylor was a member of this chamber for many years and a member of the Public Works Committee. His knowledge of the operations of the committee was helpful in that respect, in carrying out this inquiry in a very isolated locality.

I also thank my colleagues—my deputy chair, the member for Burke, and the committee members—for their positive contribution and support. On behalf of the committee, I also thank the secretariat staff and the Hansard staff, who travelled to a very remote location. We appreciated their support throughout this inquiry. I commend the report to the House.