Government Contracts

The Hon. R.A. SIMMS (15:15): I seek leave to make a brief explanation before directing a question without notice to the Minister for Primary Industries and Regional Development on the topic of government contracts.

Leave granted.

The Hon. R.A. SIMMS: This morning, The Advertiser reported that Ventia, a company that holds a $4 billion contract with the state government to look after buildings such as schools, hospitals and office blocks, has been criticised in a report by the Auditor-General for allowing contractors to overcharge and for taking too long to carry out repairs. The Auditor's findings came after allegations that some regional schools are being forced to use the government-mandated company rather than local tradies, costing them tens of thousands of extra dollars for simple jobs.

The Auditor-General's Report concluded Ventia was engaging subcontractors who charge above the maximum trade ceiling rates established under the contract, with participating agencies charged at higher rates than those allowable for some work. In one instance, a school in the state's South-East was quoted $65,000 to build a fence that a local contractor estimated would cost just $2,000. My questions to the Minister for Primary Industries and Regional Development therefore are:

1. Is the minister concerned that the government's contract with Ventia is driving up costs for critical building and maintenance work in the regions?

2. Would the government support a public builder who could undertake this work?

3. What steps is the minister taking to address this issue?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:16): I thank the honourable member for his question. Of course, this is a contract that was put together under the former Liberal government. This contract is, of course, currently in force. I think those opposite should talk about taking the blame for some of the issues that are the result of that contract. We talked, if I recall correctly, when we were in opposition and raised some of these concerns, with some suppliers from Murray Bridge who were out the front of Parliament House when this was being put forward by those opposite, or their predecessors, in the previous government.

It is very concerning that the sort of contract that was put together by the former Liberal government is potentially having very detrimental impacts. The relevant minister in the other place I heard on radio this morning describing this contract as such that he feels like he has one hand tied behind his back in trying to address the issues that have come from this. I think it is most unfortunate. I know that the minister is doing what he can in terms of reviewing the contract to be able to see how we can get a better outcome for our regional communities, despite the absolutely appalling situation brought about by the former Liberal government.