Estimates Replies

Royal Adelaide Hospital Site Redevelopment

In reply to Mr MARSHALL (Dunstan—Leader of the Opposition) (1 August 2016). (Estimates Committee A)

The Hon. J.J. SNELLING (Playford—Minister for Health, Minister for the Arts, Minister for Health Industries): I have been advised:

1. The heading on page 26 states 'Investing Expenditure Summary' and hence the $256 million reflected in the table is the investing expenditure component only of the new RAH project budget. The difference of $207.5 million is the operating expenditure component of the total project budget, which includes operating related costs such as transition, remediation and dual running.

2. The funding for commercial settlement which included remediation, was approved by cabinet in September 2015, and published as a policy measure as part of the 2015-16 MYBR (pages 32-33).

3. The total project figure increased by $87.8 million from the 2015-16 budget to the 2016-17 budget. The majority of this relates to the additional resources announced as part of the 2015-16 MYBR. As I pointed out in the estimates hearing at the time, the $34.3 million in net additional funding announced in the MYBR was a net number that included savings of $57.1 million due to budgeted service payments no longer required to be made to SAHP as a result of the delay. The total project figure does not include service payments (which commence after the project is essentially complete), and therefore is a gross figure that doesn't factor in the saving.