Public Transport

In reply to the Hon. A. KOUTSANTONIS (West Torrens) (10 September 2020).

The Hon. C.L. WINGARD (Gibson—Minister for Infrastructure and Transport, Minister for Recreation, Sport and Racing): I have been advised:

The provision of bid-cost contributions is a standard practice in the industry for all manner of procurements and service contracts. When the state purchases the intellectual property that has been put forward by the unsuccessful proponent, it can be used to the benefit of the state.

The purchase of intellectual property has been undertaken by the state government on previous projects including:

North-South Corridor, Torrens Road to River Torrens (2015, $3,300,000 including GST)

O-Bahn City Access (2015, $550,000 including GST)

Torrens Rail Junction (2016, $1,100,000 including GST)

Gawler Rail Electrification (2017, $1,100,000 including GST)

Oaklands Crossing Grade Separation (2017, $880,000 including GST)

On 18 September 2020 the Minister for Infrastructure and Transport and the Rail Commissioner entered into a contract with Keolis Downer Pty Ltd for provision of heavy rail passenger services for the Adelaide metropolitan passenger rail network for an initial contract term of eight years, with a contract extension option of four years.

Under section 39 of the Passenger Transport Act 1994 the Minister must prepare a report on this contract for laying before both houses of parliament and provide to the Auditor-General a copy of the contract and a report describing the processes that applied with respect to the awarding of the contract to enable the Auditor-General to examine the contract and prepare a report to parliament on the probity of the processes leading up to the awarding of the contract.

The government is fully complying with the probity and accountability requirements that necessarily apply to a contract of this nature.