Third party use

The PPP model also opens the door for government to gain value from complementary property development. When such strategies are pursued, critics often denounce the plan as private sector exploitation of community services. Such fears are usually misplaced. For example, while the NSW Schools PPP project makes the facilities available for third party and community use outside of school hours, the school retains ultimate control over the facilities. Jan Marshall, Principal, Sherwood Ridge Primary School, explains:

"It has been suggested that the schools are handing over control of their facilities to the private sector who then allow anyone to use the facilities. This is not true. The principal controls who from outside the school uses the facilities."

Indeed, these commercial opportunities often benefit the government employees and the public using the facilities. For example, Victorian County Courts has relied on an innovative approach to asset utilisation to generate additional value, as CEO Neil Twist describes:

"Using third party bookings for the rooms, while novel, has had the added benefit of introducing the County Court to a wider community audience. It is also an efficient use of the Courtrooms as public spaces when they are not being used for hearings."

Other examples of complementary cross-facility use include:

  Childcare facilities co-located with primary schools in the NSW Schools PPP

  Retail outlets at Casey Hospital

  Student accommodation at Southbank TAFE

  Retail and office precinct at Southern Cross Station, providing an essential link between the Melbourne CBD and the fast developing Docklands area

Outside the PPP model, government agencies are less likely to provide such facilities efficiently. This is a key area where private sector expertise delivers value.