Train Services, Costs

In reply to the Hon. A. KOUTSANTONIS (West Torrens) (14 October 2020).

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

1. DIT initiated the Adelaide Rail Transformation Program (ARTP) with the objective of securing a contract for the operation, maintenance and service delivery of the Adelaide Metropolitan Passenger Rail Network (AMPRN).

The Commercial/Financial Leads within the ARTP Team (not Ernst and Young) were responsible for developing the financial and commercial models, including the historical train pro forma financial statements and the Public Sector Comparator (PSC) model for the ARTP transaction.

Ernst and Young undertook the external assurance reviews and prepared limited scope financial due diligence reports on the pro forma financial statements and the PSC model, as prepared by the ARTP Team.

2. The bidders were provided the pro forma financial statements for 2018-19 along with other documents that contained details about the operation and maintenance of Adelaide's passenger network.

The cost of running Adelaide's train network in 2018-19 of $125.9 million (per pro forma financial statements) was exclusive of corporate costs and inclusive of periodic maintenance costs. This report states that 'Corporate and shared service costs are not considered in the Financial Statements'.

The cost in relation to 2019-20 operating costs was $133.6 million. This is inclusive of corporate costs and exclusive of periodic maintenance costs. This is comparable to the $125.9 million costs in 2018-19, once adjusted for indexation, corporate costs and fluctuations in periodic maintenance costs (and associated activities such as rail line closures).

3. The minister was provided with the budget impacts of the proposed contract with Keolis Downer over the term of the contract, which took into consideration current costs of the government operating the rail network.