Adjournment Debate

Regional Roads

Mr BELL (Mount Gambier) (15:48): I rise to talk on the topic of road maintenance, and in particular our regional roads. I am calling on the state government to scrap the Fulton Hogan contract it has.

The roads in the South-East have never been in a worse condition. People may try to direct that towards a wet winter; well, this has been one of the driest times on record. You just have to ask any farmer in our local area, and they would confirm that. In the past, we have had wet winters, but I have never seen our roads deteriorate to the same level and nor have I received as many complaints in my office about that.

When I do these types of things, I always try to offer an alternative solution to a problem. What I am talking about is reinstating a highways department, like we used to have. I think one of the problems that state governments all over Australia and potentially the world have is that if they do not have something to base a road contract on then they have to take the price that the market gives them. That might sound quite logical in theory and you could argue it drives the best price, but I would argue that without a baseline you end up paying inflated prices and, of course, the work is done to a profit margin because every company is designed to, and needs to, make a profit to benefit shareholders and make sure that there is enough profit for continuing work.

We see a similar type of example with our whole-of-government contract at Ventia. Just for the record, a number of people talk to me and say, 'Ventia's a government department, isn't it?' It is not. It is an ASX-listed company, dual-listed with the New Zealand stock exchange. People may be interested to know that Ventia last year made $163 million in profit, with a share price of $3.72. I think it could be one of the smartest investments going around, for anybody listening, because the inflated prices that I have seen on just school work really does beggar belief.

Mount Gambier is approximately 440 kilometres away from Adelaide. It is a journey many of my constituents make on a regular basis. The roads, whether inland via the Riddoch and Dukes highways or coastal along the Southern Ports or Princes Highway, present a common theme: deterioration. This issue has persisted for years and to such a degree that in late 2017 the then Labor government reduced the speed limit on some sections to 100 km/h due to safety concerns. These bandaid solutions seem to have become the norm rather than a comprehensive approach to maintaining our road infrastructure in the region.

Road maintenance in the South-East was previously managed by the Department for Infrastructure and Transport, with depots located in both Mount Gambier and Naracoorte. Essential maintenance work was also undertaken by local contractors, some of whom had worked for the government for over 30 years. Over those 30 years, the facilities manager and contractors developed strong working relationships and essential site knowledge. They knew where the stormwater ran, where the soil ran and what locations had received upgrades. This knowledge saves time, inconvenience and money as well as employing local businesses.

However, in 2019, the then Liberal government made a decision to privatise the maintenance of the entirety of the state's road network. This was touted as a cost-saving measure, with the state's network being divided into four zones, with seven-year contracts on offer. The regional south network, which includes Mount Gambier, was awarded to Fulton Hogan. Recent revelations indicate a significant mismatch between the contracted amounts and the estimated cost of necessary repairs. This raises concerns about the effectiveness and current approach, as residents increasingly face damages to their vehicles due to subpar maintenance efforts. These residents consistently contact my office in frustration, anger and distress because no-one is being held responsible for the damage costs.

In September of last year, I asked our current transport minister, Mr Koutsantonis, to explain the response times that were required with the government contractor. He explained that the South-East road maintenance program had formerly been a state government responsibility but had been outsourced by the previous Liberal government.

I wholeheartedly agree with Mr Koutsantonis, and I am calling on the state government to rectify this immediately. We need to tear up the contract and start again, return to a more localised approach and reinstate the government's highways department and road maintenance depot in Mount Gambier. This shift would empower local companies leveraging their local knowledge to benefit our community.