Regional Resettlement Agreement between Australia and Papua New Guinea. Sorry, "Arrangement", not Agreement.
Tony Burke's department hand-picks blokes with the right stuff for Nauru - $60M worth of it.

Australia's end of the bargain - let's get some sense of the Manus Island costs

Keep in mind this is not about stopping the boats.   This Arrangement is about receiving boats in Australia (where a person will be subject to coverage by the Australian courts).   According to the Arrangement Rudd made with PNG, we will then take responsibility on Australian soil for 

  • Housing the person making a claim for asylum while the following checks are conducted
  • Establishing the person's identity
  • Checking the person's health
  • Conducting "security checks" on the person's background
  • "transferring" that person to Manus Island, PNG in a cooperative, harmonious way to enjoy their new life.

Today, the Manus Island centre is essentially a tent city facility with a capacity of about 200 people. Source, UNHCR visit report 2013. 

Here are a few comments from the UN report based on a visit 15-17 January, 2013 where it noted people were living under canvas.

Manus UN report
Manus un report 2

On 19 July, the Australian Government tenders website published this account of the award by the Department of Immigration and Citizenship of CN1601761, a contract valued at $150,832,171.60 to DECMIL AUSTRALIA PTY LTD for its provision of services as Managing Contractor for Manus Island.

It's a project management contract that will run from 18-Jun-2013 to 30-Jun-2014.

Decmil manus
What?   Decmil's contract started on 18 June, 2013?   Who knew what between when the contract started on 18 June, 2013 and 2 July, 2013 when Decmil announced the contract to the Australian Stock Exchange, stating the value at $137M?

Download Decmil Group Limited Secures Contract to Build Village on Manus Island

And Decmil made clear that the contract is to build a 600 bed facility.

Decmil announcement 1
Decmil announcement 2

A source I trust has told me that contract variations to the 600 bed contract have already been put in place to boost the $137M to $150M in just over a fortnight.   Still for 600 beds.   My source quoted me a current figure of $196M based on further unannounced variations - still for the 600 bed facility.

Rudd's "Arrangement" with PNG is said by sources in PNG (confirmed by my source) to include a further contract variation to be awarded to Decmil to increase the size of the facility from 600 to 3,000 beds.

Here's a report from The Australian newspaper dated 19 July 2013 at 7PM online:

While the government has put no limit on the number of asylum-seekers to be sent to Manus, sources in PNG said the centre's capacity would be expanded to 3000 people, up from the 600 currently planned.

Conditions at Manus Island centre have weakened Labor's offshore solution, because the government has had to remove children and their parents from the remote facility, located at a former naval base.

Refugee advocates have condemned conditions at Manus as “harsh”.

Manus Island MP Ronnie Knight said earlier today the Manus facility would now be expanded to become the “primary regional centre for the whole of the Pacific”.

Mr Knight said he backed the expansion of the detention centre as long as the people of the island benefited.

“I want Momote (the Manus airport) extended and made into an international airport,” he said.

“And I want the Australian navy to take over the Lombrum naval base and help protect my marine resources,” since many people on Manus depend on fishing for their livelihood.

Asked how many more asylum-seekers Manus Island could absorb at any one time, beyond the 600 it was originally planned to take, he said: “Some, but not much.”

The Manus Island centre was opened in 2001 as part of the Howard government's Pacific Solution, but closed in 2004 after its final detainee was resettled in Australia.

The ABC carries a similar report, in it's case it says the 3,000 bed number is a definite commitment.

The deal includes a significant expansion of the Manus Island detention centre to house 3,000 people, up from the original capacity of 600.

So Decmil Australia shareholders will be rubbing their hands together with glee.   It's highly unlikely that even this canny negotiator of a government will bring in a second project manager to build the extra 2,400 bed bits of the facility when Decmil is already engaged as the prime project manager onsite.  Kevin's canny negotiating skills will be welcomed amongst Decmil shareholders, with those who bought the stock in June at $1.50 now looking at shares worth $2.07.

Here's the Commbank MyWealth report on the stock and the $137M announcement.

And here's the Australian Stock Exchange's report on the security DCG

A couple of points.  Decmil made its announcement to the ASX of the contract win on 2 July, 2013.

The Federal Government's tender website records the start date of the contract as 18 June, 2013.

Check out the volume in trade when the price started to move from $1.40something in early/mid June.   I hope no one who knew which contractor the Federal Government was going to select, that wouldn't be possible with a Labor government in power.   They are the friend of the working Left Testicle, sorry the working Obeid family, sorry, the working man and woman (paying HSU dues to help out persons who as Secretary of the union require HSU-funded appropriate travelling and relaxation allowances).

Looks a bit like a few profit takers got in around the second last week of June, then took the money and ran in the last week.   Then the stock zoomed on the official announcement in the first week of July.   But that's just me sayin' it as I see it and what would I know.

Decmil price chart

There are some clear winners from Prime Minister Rudd's announcements.   Decmil Australia is one.   PNG is another.  Those who wish harm to community relations within PNG will be smiling too.

Here is the bill for charter flights for a month and a half to Manus Island late last year when it took its first small batches of people.   Nearly $2million.  For plane trips alone.   With next to no one there.

Air charter manus

If you've the stomach for it, there are heaps of contracts let to the winners who are grinners for Manus Island already here.

I have an idea that's not so costly.

  • Enforce our maritime border with a Naval blockade that intercepts illegal vessels, establishes flag of origin and port of embarkation and does not allow illegal unauthorised vessels to pass into our waters.
  • If our Naval forces encounter acts of piracy or endangering life at sea, our forces will take the appropriate action according to international law and will hand the persons so detected to competent authorities for court action.
  • Boats stopped at sea will be victualled and fuelled sufficiently to provide for their return to their port of embarkation.
  • No permanent protection visa will be issued by Australia.   At best a temporary visa subject to immediate and revocation when the conditions that justified a refugee claim have been resolved.
  • A temporary protection visa holder will have no right of family reunion or permanent residency.
  • Any person who holds a temporary protection visa will have the visa cancelled immediately upon leaving Australia.

Kevin Rudd is a fraud.  A liar and a dangerous fraud.   He has the unfortunate habit of involving himself in policy areas where people end up dying.   The post-Kevin result is too often huge expense in life and money.   How can he be allowed to go on like this?

NB - Declaration by the author Michael Smith.   Nothing in this report should be construed as investment advice.   I own no shares in Decmil (DCG) or any other security traded on the ASX at all.  No one I know has any shares in the company to my knowledge.   I'd never heard of Decmil until today.   Kevin Rudd is a menace.