I am concerned that in some instances capital works projects are being presented for the approval of the Budget Committee of Cabinet with short notice and lacking supporting justification.

The procedures established for review of capital works bids have been in place for some time and are intended to allow for an appropriate level of review by Treasury prior to consideration by the Cabinet Committee.

Earlier this year the Budget Committee agreed that Ministers are to forward capital works submissions to The Cabinet Office in time for them to be copied and distributed to Committee members 5 days ahead of meetings. It is a matter of concern and contrary to good decision-making processes that these arrangements are still not being complied with.

I am now informing Ministers that unless submissions are lodged in accordance with this requirement their items will not be included on the agenda for future Committee meetings.

Additionally, Ministers are reminded that their proposals must be supported by:

• a technical feasibility study;
• an economic appraisal comparing build and "no build solutions";
• a value management study
• a risk management plan; and where appropriate
• a financial appraisal report.

It is essential that this supporting documentation be made available at an early stage in order to facilitate review of the project. In many cases it will be desirable to provide the supporting documentation to Treasury in advance of the formal submission.

I should be pleased if you would ensure compliance with the above requirements so far as your administration is concerned

Yours sincerely,

Bob Carr
Premier