MODBURY HOSPITAL

109 Mr HAMILTON-SMITH (Waite) (17 July 2012). With respect to 2012-13 Budget Paper 4, vol. 3, p. 15—

Why was $22 million budgeted for the Modbury Hospital development in 2011-12, and only $1.378 million spent and what the reason for this delay?

The Hon. J.D. HILL (Kaurna—Minister for Health and Ageing, Minister for Mental Health and Substance Abuse, Minister for the Arts): I am advised:

In the 2011-12 State Budget Papers, the proposed expenditure for the Modbury Hospital Redevelopment project was stated as being $22 million. The total budget for this project is $46.378 million.

While it had been intended to commence construction work on this project during 2011–12, this did not eventuate because during the master planning process two options were identified for the delivery of the 36 bed rehabilitation unit and these needed to be fully investigated. In considering these options, a decision was taken late in 2011 to proceed with the construction of a new building rather than refurbishment of the existing tower building.

Once this decision had been made, concept development was undertaken to develop the project design in sufficient detail for consideration by the Government and the Public Works Committee before proceeding to construction. The final actual expenditure on the project during 2011-12 was $0.83 million.

As part of the 2012-13 State budget considerations, a decision was taken to deliver this project in two stages. The first stage being the redevelopment and expansion of the emergency department, which is due to be completed in December 2013. The second stage will be the construction of the new 36 bed rehabilitation building, which has been rescheduled to commence construction in 2016-17.