The Rann Government has provided no evidence the public-private partnership deal for the Royal Adelaide Hospital would save $170 million, as originally promised.
“Three years ago, when Mr Foley first announced the PPP deal, he promised the private sector option would save taxpayers at least $170 million, compared to the option of the Government building the hospital,” Shadow Minister for Finance Rob Lucas said today.
The Advertiser story on 18 December 2007, titled ‘Marj deal to save $170m’, quoted Mr Foley as follows:
“The new $1.7 billion Marjorie Jackson-Nelson Hospital would be built using a public private partnership to save taxpayers at least $170m.”
“However, in announcing the deal on the weekend, Mr Foley has tried to gloss over this issue by refusing to answer any questions about the cost of the deal,” Mr Lucas said.
“Mr Foley’s claims of commercial confidentiality are a nonsense as the Government has already picked the winning bid and they won’t be building any other similar hospitals in the foreseeable future.
“It is a disgrace that, three years after the first announcement, Mr Foley still doesn’t know the final cost of the PPP deal.
“Only the Rann Government could think it sensible to make a decision to award a contract worth almost $2 billion without even knowing the final cost.
“Even more worrying for taxpayers is the Government’s response to questions the final cost would be ‘not far off’ the promised $1.7 billion.
“That is ‘Rannspeak’ for cost blowout.
“Mr Foley should also reveal whether any of the costs of the project such as the remediation of the railyard land are being hidden in departmental budgets and not included in the project costs.
“This is of course the deception used by the Rann Government to try to conceal the real cost of the Adelaide Oval project.”