Royal Adelaide Hospital

The Hon. J.J. SNELLING (Playford—Minister for Health, Minister for the Arts, Minister for Health Industries) (14:08): I seek leave to make a further ministerial statement.

Leave granted.

The Hon. J.J. SNELLING: On 5 April 2016, the state issued major default notices against South Australia Health Partnership, the consortium responsible for delivering the new Royal Adelaide Hospital, after the agreed date for technical completion had passed. The issuing of the notices requires SAHP to take immediate steps to provide a plan to explain how it proposes to cure or redress this major default. In particular, the state requires a realistic and reliable date for technical completion and to ensure the work is completed safely and without a reduction in the quality of the construction.

Last week, SAHP submitted the builder Hansen Yuncken Leighton Contractors' revised recovery plan and cure program to the state, showing a forecasted technical completion date in September. This is the latest in a series of proposed completion dates from HYLC and requires further scrutiny before any new time lines can be confirmed. The state is currently reviewing this latest update, and it is important to note that SAHP has advised they are also seeking their own independent review of the proposed program from HYLC.

No decisions will be made about the timing of the hospital move until we have confidence that the time lines provided to us are realistic and reliable. However, the state does not expect that technical completion will occur any earlier than September. As I have stated previously, the state has rights under the agreement with SAHP in respect of delays, noting that SAHP bears all risk in any delay that it causes in achieving technical completion.

Under the terms of the agreement, the state government will not pay a cent in service payments for the hospital until commercial acceptance has been achieved. Safety must always be paramount at the new Royal Adelaide Hospital—for patients and staff who will move into the hospital, for workers who are building it and for the many contractors who are assisting the state to commission it.