Proton Therapy in South Australia

In reply to the Hon. F. PANGALLO ().21 February 2024).

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Treasurer has advised:

1. In 2017, as part of its process to procure a proton therapy system for the Australian Bragg Centre for Proton Therapy and Research, SAHMRI, through its procurement advisor Commercial & General, engaged accounting firm KPMG to undertake due diligence on ProTom International's capacity to deliver its proton therapy system.

2. As I previously advised parliament on 21 February 2024, the former Treasurer, the Hon. Rob Lucas agreed to provide several forms of security to Commercial & General to support its private interests in the Australian Bragg Centre. This includes:

sharing of construction and financing cost risk associated with building the Australian Bragg Centre building, and

step in obligations to complete the proton therapy unit should the Australian Bragg Centre for Proton Therapy and Research be unable to complete the project.

The details of those arrangements are commercially sensitive and confidential. However, I can advise that cost to the state of meeting security obligations could be many millions of dollars contingent upon the final cost of the delivering the building.

3. The total cost of the building is met primarily by private financiers, and that cost is confidential information. As noted at 2 above, the state's shares in cost and financial risk in constructing the building, which includes a provision for the builder to support installation of the proton therapy system. I can advise that the state's exposure through that cost sharing is several millions of dollars.

4. SAHMRI has the main contract with ProTom International to supply the proton therapy system. Within that contract, SAHMRI has various rights to recover funds from ProTom and its suppliers. The specific details of this contract are confidential between SAHMRI and ProTom International. The state is continuing to work with SAHMRI, which includes identifying funds available to return to governments.

5. SAHMRI has paid less than two-thirds of $68 million provided by the commonwealth government to pay ProTom International and its subcontractors at this stage. The remaining balance is currently held by the state.