Investment Attraction

Mr TELFER (Flinders) (15:20): I rise today on the important issue of attracting investment to this state. It is already clear that this Malinauskas government is prepared to make reckless and arrogant decisions to interfere with several contracts and decisions of the previous government in a way that will seriously concern potential investors in our state.

We see this with the Malinauskas government's approach to the current contracts for the outsourcing of metropolitan train and tram services. In opposition, Labor made wild accusations about improprieties in the negotiations of these contracts. It sought to undermine reputable businesses bidding for these contracts. Labor even announced that, if the private sector had the audacity to ignore its opposition to outsourcing these contracts and successfully seek compensation for breaking them, Labor would simply legislate to remove any rights to compensation.

Now, even after the Auditor-General gave the procurement process a completely clean bill of health, Labor is blindly pursuing a reckless policy that will only warn off potential investors in our state because it is textbook sovereign risk threatened by a typical antibusiness Labor government. Labor has even signalled to investors that, if it cannot win a case to prevent compensation, it will, at a stroke of its pen, legislate to change the law in its favour.

What adds to this concern is the way in which this Malinauskas government threatens to interfere with decisions duly made by the independent board of Renewal SA. In late January 2022, the board selected MAB Corporation as the preferred proponent for the redevelopment of the Brompton Gasworks site. This was the final step in a process initiated by Labor when last in government and continued by the Marshall government.

The board's decision was made well before the commencement of the caretaker period. It was endorsed by the then Treasurer as minister responsible for Renewal SA. This gave the executive of Renewal SA the right to close out an agreement with MAB that would have allowed this valuable development to be underway by about now. But what did Labor do? The then opposition leader announced that a Labor government would undertake a review and possibly rip up any contracts entered into with the successful proponent, and why? Because Labor considered this would be a good pre-election media grab and play into local footy politics. It was an arrogant grab for short-term popularity and political gain but another serious long-term threat to investor confidence in South Australia.

Concerns about public space expressed by the leader in justification completely ignored that the proposal chosen by Renewal SA far exceeded any open space requirements in the master plan for the site approved by Labor when in office. What we see again is clear interference in a properly made decision, potentially jeopardising the probity and process of a project run by a statutory authority with an independent commercial charter. From late January 2022, the Chief Executive of Renewal SA has had delegated authority to finalise a contract with MAB Corporation. What has happened since?

The Hon. N.D. Champion: How do you know this?

The SPEAKER: Order!

Mr TELFER: Has he been directed by the minister to stop negotiations? No answers. If the minister has directed—

Members interjecting:

The SPEAKER: Order! The minister is called to order.

Mr TELFER: —Renewal SA to stop negotiations—

The Hon. N.D. Champion interjecting:

The SPEAKER: The member for Taylor!

Mr TELFER: —this direction needs to be tabled in this house because Renewal SA had selected MAB as the preferred proponent. The parties had agreed to commercial terms, but the minister has now stepped in on some assumed authority to initiate an independent review, in effect, an independent review of a decision already made by an independent statutory authority. It is becoming a farce.

This is a complex project. There are significant issues with respect to contamination on that site. We on this side have every confidence that Renewal SA took into account all of the challenges and made its decision based on which proponent would provide the best solution. One of the factors considered was the provision of affordable housing in this project. We all know how important this subject is but here we have the government now reviewing a project which would provide such affordable housing in this city.

The government cloaks its intentions with the statement, 'We are simply fulfilling an election commitment to review the criteria,' but the government has at the same time set community expectations that this may end up being a different outcome from this project and this is not the way to attract investment into South Australia. Renewal SA is an independent authority with responsibility to make independent decisions in the best interests of our state.

This is a government that arrogantly assumes that it knows best, a government that is prepared to interfere with independent processes to get its way. This will be a significant test for this Malinauskas government and investors around our nation and elsewhere are watching closely.