Infrastructure Project Funding

The Hon. D.G.E. HOOD (14:30): My question is to the Treasurer. Can the Treasurer explain why the state government has allocated significant funding over the coming years towards the production of business cases for infrastructure projects?

The Hon. R.I. LUCAS (Treasurer) (14:30): One or two people have raised the issue with me in recent days as to why the government announced what they believe was a significant sum of money, and undoubtedly it is. It was an announcement of $27 million over the next four years to undertake business cases for significant infrastructure projects. There is clearly some interest in why the taxpayers of South Australia are funding, through the government, significant business cases for infrastructure projects.

The reality is that, when the Marshall Liberal government was elected in 2018, what we found was that for the state's biggest infrastructure project, the north-south corridor project, which was at a cost of many billions of dollars, there had been no decision taken by the former government or the former ministers to fund a properly constructed business case in terms of, in essence, the costings, final design and reference design and the benefit-cost ratio of such a significant investment on behalf of the taxpayers of South Australia.

The new government had to set about very quickly to undertake a final business case in relation to the north-south corridor and indeed a range of other significant infrastructure projects. What this government has chosen to do is twofold, in relation to public sector infrastructure. One is that it committed a significant sum of money in last year's budget and we are now continuing this for the next four years in terms of providing funding to departments and agencies.

Many of these projects require business cases to the cost of about $5 million. Some of them are cheaper than that, but a number of the significant projects cost around about $5 million to undertake significant business cases, in terms of justifying the expenditure of taxpayers' money in these particular projects and in some cases to rule out whether or not it makes sense to go ahead with a particular project or not.

In relation to the decisions that have been announced, already the government has announced the finalisation of a business case on the argument for or against the widening and upgrade of the Eyre Highway to try to provide access for triple road trains from the Western Australian border through to Port Augusta. There is a very strong argument, Mr President, as you would know and regional members would know, in terms of freight transport between east and west, that there is a significant potential economic benefit from upgrading that particular road network to allow triple road trains to be able to utilise that particular road. That business case is just one example.

The other one is the Murray Bridge to South East Links, which is considering the benefits and costs of duplicating the Princes Highway and the Swanport Bridge between Murray Bridge and the Mallee Highway. Again, these are important regional road networks in terms of important arguments in terms of freight access, as well as travel movements for not only businesses but households as well. Again, at the other end, as announced on the weekend, those in the artistic community are arguing the need for a concert hall or an acoustic hall. There is a business case, at a much lower cost I might say, to look at the business case for the argument for an acoustic or a concert hall in South Australia.

The second element is the introduction of Infrastructure SA, and that is all new projects of $50 million or more are being required to go through an Infrastructure SA process, and Infrastructure SA is requiring, understandably, proper business cases to be constructed. At least in this way there is some marginal movement towards some transparency and accountability in terms of government decision-making. Governments, Labor or Liberal, will always make decisions in relation to major infrastructure projects. The current Labor opposition has committed to a half a billion dollars proposal, which obviously hasn't gone through an Infrastructure SA proposal—

The PRESIDENT: The Hon. Treasurer should start to bring this answer to a conclusion.

The Hon. R.I. LUCAS: Thank you, Mr President—because that is actually not something they are able to do at the moment. The combination of both business cases and Infrastructure SA means that there is now greater transparency and accountability in terms of justification for significant public sector infrastructure projects.