Public Works Committee: Old Royal Adelaide Hospital Site

Mr CREGAN (Kavel) (11:10): I move:

That the fourth report of the committee, entitled 'Old Royal Adelaide Hospital site: demolition, infrastructure and refurbishment of retained state heritage buildings project', be noted.

In August 2017, the state government approved the transfer of the former Royal Adelaide Hospital land to Renewal SA and for preliminary demolition works to commence. This project is the next phase of the transformation of the old Royal Adelaide Hospital site and includes further demolition, landscaping and public realm works, and the adaptive re-use of existing buildings on the site to create an innovation incubator, start-up and growth hub. The establishment of this hub is a key element of the project. It will involve the repurposing of seven state heritage listed buildings that front North Terrace and Frome Road.

The repurposed buildings will incorporate shared work and social spaces, as well as collaboration and quiet spaces, complemented by specific features, such as a lecture theatre. The site will also include event spaces, meeting rooms and gym facilities that building tenants will have access to. These integrated spaces will facilitate the entire start-up ecosystem, which will also include fledgling businesses working to develop new ideas or products, business incubators, mentoring programs and logistical support, business advisers and investors, and venture capital firms to help take ideas to the global market.

This project is expected to have a significant economic benefit to the state, principally relating to improved employment, branding and tourism. The total gross cost for this project is estimated at $418.3 million and it is expected to be completed in 2021. The Public Works Committee has examined written and oral evidence in relation to this project, and the committee has been assured by Renewal SA officials that acquittals have been received from the Department of Treasury and Finance, the Department of the Premier and Cabinet, and the Crown Solicitor that the works and procedures are lawful and necessary.

The committee is satisfied that the proposal has been subject to the appropriate agency consultation and meets the criteria for examination of projects, as set out in the Parliamentary Committees Act 1991. Having regard to the evidence considered and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the proposed public work.

Mr PATTERSON (Morphett) (11:12): I would also like to speak, albeit briefly, on the draft report of the Public Works Committee. We had some witnesses before us in our meeting in August and also some written submissions in regard to this. The report that we are presenting to parliament today examines the history of the proposal, but also the efficacy of the application of South Australian taxpayer funds to the old Royal Adelaide Hospital site, including the demolition, infrastructure and refurbishment of the retained state heritage buildings project.

The actual redevelopment itself of the old Royal Adelaide Hospital site presents a unique opportunity to transform Adelaide's CBD and also to provide linkage between North Terrace and the Botanic Garden. In August 2017, the then state government approved the transfer of the former Royal Adelaide Hospital land to Renewal SA and for Renewal SA to undertake preliminary works on that site, which included, in stage 1, the demolition of the East, Hone and Cobalt wings, and the emergency block link. Stage 1 demolition of the former Royal Adelaide Hospital is now underway, which I am certain many of you will have seen as you go down North Terrace, and it is scheduled for completion in late 2018.

The project vision does respect and build on the site's significant cultural history and location, and it is intended to create an opportunity for people to access, use and enjoy the site in a way they have not been able to in the past, obviously, being a hospital precinct. It is envisaged that there will be the establishment of an innovation, incubator, start-up and growth hub, being a key element of this project. We are also looking at potentially the national Space Agency being located there as well, which will be a really exciting area to propel this state forward.

Obviously, a site with so many heritage buildings involves the adaptive re-use of those remaining heritage buildings that are not being demolished to create this innovation, incubator, start-up and growth hub. Those seven buildings include the Women's Health Centre, the Allied Health Services Building, the Margaret Graham Building, the Eleanor Harrald Building, the McEwin Building, the Bice Building and, finally, the Sheridan Building.

Any work and development applications relating to these redevelopments will include a mandatory referral to the state Heritage Register. Blended across those seven heritage buildings, which will take up 2,500 square metres in total, the hub intends to include integrated shared tenant, community and event space to try to foster collaboration and bring together a start-up ecosystem, which will include start-ups working to develop new ideas or products, predominantly based around digital technology. In addition, there will be incubators that will provide start-ups with the catalyst tools, mentoring programs and logistical support, business advisers and investors, and also venture capital firms to help take ideas to the global market.

Just recently, the member for King and I attended one such presentation run by Flinders University that demonstrated some of the start-up work being done there aimed at attracting venture capital firms. It was fantastic to see them in action. One of them is Ping, which involves using drones to monitor the acoustics of wind farms to help detect any damage to the rotor blades. These are the sorts of terrific opportunities that can come out of this and help drive South Australia's future in the advanced manufacturing space.

You will also notice that the 2018-19 state budget builds upon this vision. It involves a significant capital works program, with the state budget providing just under $44 million to refit and repurpose those seven buildings at Lot Fourteen, which includes, as I mentioned, those heritage buildings. The state budget also includes $200,000 to be expended in the 2018-19 year to define the scope and vision for the gallery, with extensive consultation to then be undertaken with the Aboriginal community, the South Australian Museum and also the Art Gallery. The indicative investment expenditure of $60 million will be provided in the 2020-21 year and construction of the new gallery is intended to begin in 2021-22. This is another great use of this site, opening it up to the South Australian public in a way that has not been available to them previously.

In addition, the Department for Industry and Skills, Renewal SA, TAFE SA, and the world-renowned training providers Le Cordon Bleu and ICHM will collaborate on a full scoping study for the facilities required at the international school of culinary excellence, hospitality and tourism, with an indicative expenditure of up to $30 million over two years in 2020-21 and 2021-22. As you can see, there are some exciting proposals for this site aimed at reinvigorating it and opening it up to the South Australian public.

This report by the Public Works Committee is one of those steps in making sure that the money being spent there, whilst significant, will provide a lasting benefit for the South Australian taxpayer and visitors alike.

Motion carried.