Question Time

TRANSPORT, ENERGY AND INFRASTRUCTURE DEPARTMENT

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:20): I seek leave to make a brief explanation before asking the Minister for Urban Development and Planning a question about the Department of Transport, Energy and Infrastructure's proposed new building.

Leave granted.

The Hon. D.W. RIDGWAY: By way of background for this question, the proposed department of transport and infrastructure building was part of the redevelopment proposed by that body that involved the sale of the former Transport SA property in Walkerville. In fact, I am advised that cabinet approved the sale of that property to the Walkerville council some time in 2004 for $4.7 million. That site was then subject to a ministerial plan amendment report conducted by the minister's office, and that report was gazetted as having been approved on 27 July 2006.

In October 2006, the Department of Transport, Energy and Infrastructure published a document entitled 'Expressions of interest for the provision of a site for an office building complex for DTEI,' which stated that the DTEI wished to consolidate staff from up to seven of its key sites into a single location in the Adelaide CBD—preferably in the City West precinct—and it called for expressions of interest to be launched. I understand that the process was also approved by cabinet.

I am advised that 19 companies expressed an interest at that time. It was not a formal tender at that point, but I am advised that the expressions of interest cost about $50,000 to prepare. I am advised that five companies were shortlisted, and those companies then prepared some more formal expressions of interest, almost like tender documents. I am also advised that one other developer was added to that list but was not part of the original list. He was added to make up the six companies that tendered.

Unfortunately, some time after the middle of this year, that project was scrapped, leaving the 19 companies embarrassed after having spent at least $50,000. So, the development industry in this state spent at least $1 million, and some much more. My questions to the minister are:

1. Why was the project scrapped?

2. What was the estimated cost of that project?

3. What message does the shoddy management of this project send to the development industry in the state?

The Hon. P. HOLLOWAY (Minister for Police, Minister for Mineral Resources Development, Minister for Urban Development and Planning) (14:23): They are matters for my colleague the Minister For Transport, Energy and Infrastructure in another place. I will refer the question to him and bring back a response.