22 minute read
Chris Eccles | Secretary, Department of Premier and Cabinet, Victoria
Chris Eccles
Chris Eccles
Key points:
• Better infrastructure outcomes are achieved when government departments coordinate and share experiences, rather than operate in silos. • Central oversight of project delivery allows benefits and lessons to be shared across the whole of government’s project delivery. • Together, Victoria’s longer-term infrastructure strategy and robust near-term project pipeline give the market new visibility of Victorian projects.
Secretary, Department of Premier and Cabinet, Victoria
To deliver an infrastructure project takes planning, a lot of coordination and, hidden from public gaze, some good fortune. As projects get delivered, all those involved move along the learning curve. This industry stands among the best at learning from experience, and at constantly developing new ways to improve, speed up and cut costs.
The challenge to get better, move faster and take on more is now as intense as ever. As you would have heard in the opening address from the Treasurer, the Victorian Government has an ambitious infrastructure agenda, with the State Budget funding more than $7 billion in new capital works each year across the Budget year and forward estimates.
A similar story exists in New South Wales, and anyone who has been listening would know that appetites to take on even more are growing.
The challenge to deliver is, I’m sure, being felt by all in this room. The engineers feel it, as do the planners, the financial wizards and the lawyers. There is one other profession that is sharing this challenge and excitement: my profession.
Government works best when it is operating in partnership with other sectors. This is true in responding to the Royal Commission into Family Violence, pursuing economic transformation and jobs growth, driving an equality agenda and, indeed, delivering infrastructure.
True partnership can only be achieved with mutual understanding. So, today I thought that it might be useful to give you an insight into how we, the Victorian Public Service, are supporting the infrastructure agenda; a glimpse beneath the doona of government enterprise, if you like. In addition, I thought that I’d discuss how we’re preparing for the release of Infrastructure Victoria’s 30-year plan, and what it means to move into a longer-term infrastructure planning horizon.
Delivering the infrastructure agenda
As you all know, the Government came into office with a significant transport infrastructure agenda: build the Melbourne Metro Tunnel, remove 50 level crossings, extend the train line to Mernda, upgrade the Cranbourne to Pakenham line, procure new trains and trams – the list goes on. As I’m sure you’re also aware, a number of these city-shaping projects are under construction or in planning stages already.
Each of these projects has substantial standalone merit. But when considered together, the whole is greater than the sum of its parts. The interconnectedness of these projects means that
Chris Eccles
each individual project unlocks new benefits in other completed and subsequent projects.
Projects like the Metro Tunnel, Western Distributor, the Cranbourne–Pakenham Line Upgrade and the Level Crossing Removal Project all work together to reshape the economic geography of Melbourne. For example, urban renewal initiatives at the Arden Station precinct are made possible by the construction of the Melbourne Metro Tunnel, which, in turn, increases the number of users of the Melbourne Metro Tunnel, improves access to jobs and facilitates business-to-business interaction.
By 2031, when taken together, these projects will have generated thousands of jobs, increased private and public income, and lifted the gross domestic product (GDP) of the state by billions of dollars.
The Victorian Public Service’s experience with this agenda has been like the engineering of a level crossing removal: the second is easier than the first; the third easier than the second. In working on the first tranche of project decisions relating to the infrastructure agenda, we made the mistake of viewing them as projects that should neatly fit into our existing processes. We beefed up our infrastructure delivery crew, and it’s a great crew, but we expected the rest of government to either keep up or get out of the way. We failed to appreciate just how much value could be gained through accessing and applying the collective intelligence of all of government.
Not surprisingly, this failure initially meant that issues continued to pop up for last-minute resolution, with all of the attendant risks in rushed decisionmaking. It also meant that related issues not obvious to the core infrastructure agenda weren’t given the focus that they required.
Here are two examples: • One: From day one, Corey Hannett, Coordinator-
General, Major Transport Infrastructure Program, and his team was resourced, and off and racing.
Hannett staffed up, installed himself in the big corner office and appropriated the grand title,
Coordinator-General. Meanwhile, our planners – who were dealing with all of the new challenges thrown up by the infrastructure agenda, but without any extra resources – were asked to simply keep up. We needed them to adapt and, thanks to the great relationship between Hannett and Christine Wyatt, Victoria’s Deputy Secretary
– Planning, this resource imbalance has now been addressed, and a true partnership based on mutual authority and accountability has been achieved. • Two: We didn’t expose the emerging thinking to all parts of government. Why would we?
Why would the social policy or economic development departments and agencies need to be at the table? Well, because government has ambitious project apprentice targets, is making decisions that require the careful navigation of free trade agreements, and has an ever-increasing expectation that projects both create and capture public value. Projects are confronting difficult issues of native title and affordable housing.
Projects are evolving alongside planning rules like the central city-planning controls.
Within these two examples lie areas of interest and responsibility across the length and breadth of the Victorian Public Service.
So, what did we do? In short, we came to recognise that a bespoke arrangement integrated into standing structures could only help. I’m happy to report that it has.
We have created the Infrastructure Coordinating Committee. Chaired by me and serviced by my department, it brings together, on a monthly basis, public service leaders, including departmental secretaries, the Coordinator-General and project CEOs, to provide direct line of sight into projects and early ventilation of issues. By identifying the upcoming key government decision points, the committee can act as a clearing house before Cabinet Committee consideration – through discussion, crystallising the public service’s advice, and commissioning additional, cross-cutting advice where necessary – essentially ironing out issues as far as possible before they are considered by government.
The representation on this committee is constantly evolving. For example, realising the impact that the infrastructure projects we were discussing had on the urban design of Melbourne, Jill Garner, our Victorian Government Architect, was added as a member. This ensures that design outcomes, such as livability and accessibility, are front of mind in discussions about the scope and interface of projects.
To give you a flavour of the Committee’s work, in addition to the routine updates on the Metro Tunnel and Level Crossing Removal Project, a recent
Chris Eccles
agenda included discussion of issues such as the Plan Melbourne Refresh Project and its impact on transport network planning, industry capacity and capability with the anticipated procurement schedule, and a report into the economic and tax impacts of major projects.
Taking one typical issue considered by the Committee, I can explain our working model a little further. The Committee was asked to review the skills attainment opportunities identified through the delivery of the Metro Tunnel and the Level Crossing Removal projects.
The Committee discussed and endorsed further investigation of skills attainment opportunities beyond those identified through these projects. These included considering partnerships with tertiary institutions and including targets for disadvantaged workers. The discussion also focused on how the infrastructure agenda could facilitate jobs for transitioning workforces and industries, such as the automotive manufacturing sector.
On the advice of the Infrastructure Coordination Committee, Government has adopted workforce targets and skills attainment measures into procurement for all major projects, contributing to the creation of 150,000 jobs under this Government, including jobs for disadvantaged workers.
This adaptation of the public service decisionmaking processes has been mirrored by changes to the Cabinet decision-making process. Cabinet initially considered infrastructure project issues either in the policy subcommittee, which examines all major matters across the full policy landscape in their early development, or the expenditure review subcommittee, which concentrates on funding and finances. This arrangement proved not to be sufficiently focused and streamlined to enable all the project decisions required by the Government’s infrastructure agenda to be considered in a manner that supported the aggressive delivery timetable.
In September 2015, the Premier determined that Cabinet should have a dedicated committee for priority infrastructure projects to supplement the roles of the existing committees. Bringing together a small number of key ministers with input to project decision-making and chaired by the Premier, the Priority Infrastructure Sub-Committee makes the key decisions on all of the major projects underway, including the interfaces between these projects, and minimises any delays for project rollouts.
Having a dedicated subcommittee with senior ministers considering infrastructure projects also invites a broader consideration of issues affecting those key projects, while ultimately delivering a faster conclusion. It’s our version of measure twice, cut once.
An example of how these new, adaptable processes of government improve the outcomes for Victoria in the delivery of the infrastructure agenda is the management of disruption caused by transport construction and occupation periods.
Government has set the vision of what it wants to achieve, and it’s an exciting vision for Victoria; however, the road to get there is literally paved with rail occupations, road closures and construction zones. Our infrastructure experts, together with their policy colleagues, are considering how sequencing and coordination between projects can be optimised to ensure that this is as painless and efficient as possible.
We recently hit our stride in achieving great outcomes through the management of the Kororoit Creek Road level crossing removal. This election commitment was coordinated to include other works required in the same location, such as the partial duplication of the Altona Loop, and resulted in the minimisation of disruption in the area. It is a great outcome in terms of public transport services, safety improvements and increased productivity of the freight network, and it demonstrates how thinking pragmatically about communities – and how our work impacts them – can be minimised when we put our minds to it.
Efficiencies can also be achieved when procurement is coordinated. With a programme of 50 level crossings to be removed, it is vital that we use innovative approaches to procurement that maintain flexibility for the market while achieving value for money.
Through well-considered procurement methods developed in consultation across government, such as the innovative programme alliances, we are able to reduce the resources, costs and time impacts – both stateside and for the market.
Once that is achieved, we are also ensuring that the outcomes sought from infrastructure projects include creating social, environmental and economic value for the community – a legacy not just of the project successfully being delivered, but also of providing support to local industries through local content targets, jobs for apprentices and great design outcomes for local communities.
Chris Eccles
It is by having the fora at both the bureaucratic and ministerial levels to consider these issues, and the appetite to try something new, that we can capitalise on these efficiencies and benefits.
Further, by having experts spread across government, and by having agile processes in place to bring them together, the public service is primed for responding to the private sector. Government can respond quickly to new opportunities. For example, projects like the Western Distributor demonstrate how government can respond with speed and precision to market-led proposals to supplement the agenda set by the government.
One way that your ability to deliver solutions for government is enhanced is by knowing what it is that the government requires as far in advance as possible – and that is where the work of Infrastructure Victoria comes in.
Infrastructure Victoria
To get expert advice on future infrastructure planning, the Victorian Government has established Infrastructure Victoria so that, in addition to delivering the current infrastructure agenda, an independent body is considering the next generation of strategic opportunities.
Led by Chief Executive Michel Masson and Chaired by IPA Deputy Chair Jim Miller, Infrastructure Victoria has been established to provide independent advice on the infrastructure priorities of the state. This advice will assist Government in planning for the growth that we know is going to happen over the next 30 years.
Infrastructure Victoria’s key priority this year is preparing a 30-year strategy for Victoria’s infrastructure. This document will outline short-, medium- and long-term infrastructure needs and priorities, including a pipeline of projects. Infrastructure Victoria has consulted with the community, including seeking the expertise of the people in this room, to ensure that the strategy is informed by the best possible evidence and advice.
Underpinned by Infrastructure Victoria’s core objectives to improve social, economic and environmental outcomes for the state, the strategy will respond to emerging needs and pressures facing Victoria. The strategy won’t be a static document. As outlined in the legislation, it will be reviewed and updated by Infrastructure Victoria every three to five years. These updates will be self-initiated by Infrastructure Victoria, and not directed by Government.
The strategy will cover all sectors, including transport, health, culture, sport, education, water, justice, information and communications technology, agriculture, and energy.
Now, Government already has a number of strategies in place and in development for considering how the state will look in the future. We have Plan Melbourne, which is currently being refreshed, that outlines the planning and land use directions for the state over the next 30 years. There are Public Transport Victoria’s Network Development Plans that outline how the public transport network will be developed to connect Melbourne and Victoria. There is a plan for schools, a plan for health and human services, a plan for justice, and a plan for water.
Government also has strategies in place by geographic area. We know that we need to identify and plan for strategic locations across Melbourne and Victoria that can accommodate future growth. Urban renewal initiatives, such as the Arden precinct or Fishermans Bend, cannot be undertaken without also considering the infrastructure that supports development, and also what will be required over the longer term. Developing these urban renewal areas are key to supporting population growth and building our reputation as a knowledge-intensive service economy over the next 30 years.
Infrastructure Victoria’s strategy will take all the work that Government has underway and provide advice on the ways that the work can be enhanced through better use of existing infrastructure, or new projects that will lead to greater economic, social and environmental benefits for the state. And we know that when considered holistically, and delivered in a coordinated and integrated way, the cumulative value is greater than any single project alone.
In response to Infrastructure Victoria’s independent strategy, the Government will prepare a response, including its five-year infrastructure plan. Preparing this plan requires the public service to again evolve its operating model to ensure that we can deliver a product that is able to match and respond to the breadth of Infrastructure Victoria’s work.
What the response to Infrastructure Victoria’s 30-year strategy will require is a cross-cutting plan to consider infrastructure needs and solutions. For instance, are there innovative ways that the plans for housing and land use can be achieved in conjunction with transport priorities? Can the way we deliver education infrastructure be coordinated with active
Chris Eccles
transport routes to help achieve health and lifestyle improvements? More and more, we are looking at ways of collaborating, of innovating, of addressing multiple hard problems with one solution.
To prepare Government’s response, a dedicated team will be brought together in my department, with experts from across the public service to ensure that a unified strategy incorporating all of these areas can be provided. The team will take the plans and strategies already in place, and bring these together with the advice of Infrastructure Victoria to ensure that Victoria is well placed to achieve the outcomes sought: a livable, prosperous Victoria, for both the short and long term.
One part of Government’s response will be a five-year plan to guide infrastructure priorities for government investment. Our aspiration is that this work can be updated annually and applied to complement the state’s Budget-related work. So, how is this any different to Government’s approach to infrastructure investment as part of the annual Budget?
Well, the five-year plans will be pegged against the 30-year strategy and its future iterations. For you, our friends in the private sector, by clearly setting out Government’s priorities, reaching beyond the forward estimate cycle, there is the opportunity for you to access and assess our key priorities, locate these priorities within the 30-year strategy narrative, and engage with us on how they might be delivered. Not only can this start a general conversation between government and the private sector about innovative ways that the priorities can be delivered, but it will also allow you to plan more confidently to support your investment decisions.
I know from experience that many of the best solutions will come from the engineering, planning or commercial experts in the private sector. By having a longer-term strategy as reference and the five-year plan as a specific guide, the settings are right for those ideas to flourish.
Conclusion
I hope that from this brief exposure to my world – this glimpse beneath the Government doona – you have a picture of a public service and a government able to adapt its operating model and decision-making processes to keep pace with, and indeed get ahead of, the complexity and multidimensional nature of Victoria’s infrastructure agenda.
I also hope that you see, like me, the unique opportunity offered by the Infrastructure Victoria 30year strategy, and how Government intends to respond to the strategy for an even stronger partnership between the private sector and Government.
In the same way, the benefits of a well-conceived and executed infrastructure agenda are greater than the sum of individual projects, and that partnership can drive innovative solutions that are greater than the sum of our individual imaginations.
Chris Eccles, Secretary, Department of Premier and Cabinet, Victoria
Chris Eccles was appointed Secretary of the Victorian Department of Premier and Cabinet (DPC) in December 2014. As Secretary, Mr Eccles leads the department and the Victorian Public Service in advising the Premier and the Government of Victoria.
Mr Eccles was previously Director-General of the New South Wales Department of Premier and Cabinet from 2011 to 2014, and Chief Executive of the South Australian Department of the Premier and Cabinet from 2009 to 2011. Mr Eccles also has previous experience in Victoria’s DPC, having held the positions of Deputy Secretary, Sector Improvement Group and, later, Deputy Secretary, National Reform and Climate Change Group from 2007 to 2009.
Prior to joining Victoria’s DPC, Mr Eccles worked in a variety of government and private sector senior management positions. He has held leadership roles with the Australian Capital Territory Chief Minister’s Department and with the Australian National Training Authority. As an Associate Director with KPMG, Mr Eccles headed the national education consulting practice. He subsequently became a foundation Director of the consulting firm Phillips KPA, which works across all education and training sectors.
Mr Eccles is a Male Champion of Change. He is dedicated to leading the public service by example and practicing principles of open government, inclusion and diversity.
Mr Eccles holds a Bachelor of Arts and a Bachelor of Laws from the Australian National University.
LIGHT RAIL A GAME CHANGER FOR CANBERRA
A new light rail investment spurs jobs and development, benefiting the community and the environment.
The Australian Capital Territory’s investment in light rail will transform Canberra’s transport network, further energise its economy and reinforce its reputation as a leader in sustainability.
The ACT Government signed contracts in May 2016 for the first stage of Canberra’s world-class light rail network. Construction will begin this year and operations will start in early 2019. Light rail is a game changer for Canberra. By 2021, the network will host more than 15,000 daily journeys and integrate with the city’s other transport systems. The ACT Government estimates that the Capital Metro project will deliver almost $1 billion in community benefits.
The state-of-the-art network will reduce road congestion, help Canberra manage expected strong population growth and safeguard the city’s environment and livability. It will, quite simply, change how Canberra moves and grows.
The ACT’s economy will also benefit. The Transport Canberra light rail will support around 3500 jobs during construction and will subsequently support 50,000 jobs until 2047, according to an Ernst & Young study. Light rail will also be a catalyst for property development and urban renewal along the transport corridor. Canberra’s night-time economy and its shift workers will also benefit – light rail will run until one am on Friday and Saturday nights.
‘Successful light rail networks make cities more livable,’ says Capital Metro Project Director Emma Thomas. ‘They encourage people to visit the city and cities become more active and vibrant. Everybody benefits.’ Canberra, Sydney and the Gold Coast are leading important light rail projects in Australia.
Social, health and environmental benefits are other key outcomes of light rail, says Thomas. ‘Light rail will make it easier for people to connect with each other and will add to Canberra’s sense of community. It will encourage people to walk or ride to the light rail stops and be more active. The long-term benefit is fewer cars on Canberra roads and fewer carbon emissions.’
Thomas adds: ‘By integrating with other forms of public transport, light rail in Canberra will free up resources across the city. There will be more buses to deploy to other parts of the city.’ Light rail is estimated to deliver $222 million in transport time savings.
In the longer term, light rail will help Canberra capitalise on its potential in the knowledge economy. ‘Outstanding transport networks are a feature of the world’s great cities,’ says Thomas. ‘They help attract and retain top talent and add to a city’s creativity, innovation and capacity to develop thriving communities of start-up enterprises. Light rail will enhance Canberra strengths in schools and universities, technology and its leadership position in renewable energy.’
Light rail key part of strategic plan
The light rail project has a critical role in the ACT Government’s strategic city plan. Running from Gungahlin (in Canberra’s north) to the city, it will ensure that Canberra remains an exemplar in sustainable urban development and densification.
Gungahlin’s population is expected to grow from around 50,000 to 85,000 by 2031, and Canberra will have 600,000 residents by the middle of this century. Travel times from Gungahlin to the city would increase to around 57 minutes without light rail investment.
The social costs of traffic congestion could rise to $200 million annually by 2020, according to the Capital Metro Agency’s business case.
The light rail project will encourage redevelopment of the Northbourne Avenue corridor, the gateway to Canberra and an area identified for significant growth. Better transportation supports high-density land use in the corridor, which in turn will increase light rail patronage.
The project is expected to encourage property development and, in doing so, benefit Canberra’s tourism industry. About 40 per cent of its hotels are on the route. Thomas says: ‘The overseas experience shows light rail encourages more people to live in an area, which stimulates property development and new businesses. We have had lots of enquiries about potential business developments since the light rail project began.’
Greater demand for new properties in the corridor could create more options for the ACT Government in social housing. Public housing in need of renewal could be sold to developers and enable the ACT Government to build additional public housing in other areas. ‘By supporting urban renewal, light rail provides a range of economic and social development options,’ says Thomas.
Canberra’s light rail to cost less, start sooner
Canberra Metro, the successful bid consortium, includes Pacific Partnerships, CPB Contractors, John Holland, Mitsubishi Corporation, Aberdeen Infrastructure Investments, Deutsche Bahn International and the Bank of Tokyo.
Collectively, the consortium has a strong record of transport construction and operations in Australia and overseas. The partners are responsible for more than 2.2 billion passenger journeys per year across 14 countries, and have hundreds of years of combined experience in light rail networks, systems engineering and operations.
The project attracted two high-quality bids. Canberra Metro’s ability to understand the essence of Canberra and its environment were important features of its bid. The light rail project will begin sooner than previous estimates, meaning less traffic disruption during construction and less visual impact through tree removal and replacement.
When complete, Canberra will have 12 kilometres of light rail track, 13 stops and 14 light rail vehicles that will operate from six am to one am, with services every six minutes. The contract includes operations and maintenance for 20 years.
Delivered as a public-private partnership, the project’s capital cost of approximately $710 million is less than originally envisaged. The ACT Government will contribute $375 million in 2018–19, funded from the sale of public assets and partly through a 15-per cent allocation from the Commonwealth through its Asset Recycling Initiative. Over 20 years, the light rail contract will account for less than one per cent of ACT Government expenditure.
‘Capital Metro is an example of how governments can work with the private sector to renew assets and deliver economic and social benefits that exceed the project’s cost,’ says Thomas. ‘This project will deliver a strong return on investment for Canberra for years to come.’
ACT’s transport revolution
Canberra’s light rail project will be part of the city’s new transport agency, Transport Canberra, which began operating on 1 July 2016. Thomas, a former South Australian deputy chief executive of public transport and rail commissioner, will be Transport Canberra’s founding director-general.
The light rail project will work closely with Canberra’s ACTION bus system to coordinate planning, timetables and fares, which will include a single ticket for use on buses and light rail. The ACT Government has announced that it will decide on a second stage of light rail in Canberra in the coming months.
