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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-05-27 Daily Xml
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Question Time

ROYAL ADELAIDE HOSPITAL

Mrs REDMOND (Heysen—Leader of the Opposition) (14:17): My question is to the Premier. Can the Premier confirm if either or both of the tenders received for the Royal Adelaide Hospital PPP project have come in at over $2.1 billion?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Federal/State Relations, Minister for Defence Industries) (14:18): What an extraordinary question. An extraordinary question, given that they have only just been received. What day were they received, minister?

The Hon. J.D. Hill: Thursday.

The Hon. K.O. FOLEY: Thursday.

The Hon. I.F. Evans: Did you read the price?

The Hon. K.O. FOLEY: No, I haven't even looked at the document.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: Madam Speaker, it was the practice of the former Liberal government to inappropriately interfere in due process.

The Hon. P.F. Conlon: Ran out of film; late bids.

The Hon. K.O. FOLEY: That's right; late bids, ran out of film. We have a very serious probity protocol around these tenders. It would be improper, if not illegal, for me to view those documents until such time—this is how a government works, leader—

Mr Gardner: They've done some progressive business fundraiser.

The Hon. K.O. FOLEY: The member for Morialta has made a clear inference that the government is open to corruption on this tender. I take offence to that and ask him to withdraw.

The SPEAKER: Member for Morialta, I did get that implication also.

Mr GARDNER: I withdraw.

The SPEAKER: Thank you. Deputy Premier.

The Hon. K.O. FOLEY: The process that is in play is that these tenders have been received in a secure data room. The secure data room, those documents—

Members interjecting:

The SPEAKER: Order! Do you want to hear the Deputy Premier's answer or not? Or I will ask him to sit down.

The Hon. K.O. FOLEY: Within the secure data room—and the minister has visually sighted the documents—

Mr Hamilton-Smith: How else can he sight them?

The Hon. K.O. FOLEY: True. Madam Speaker—

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The SPEAKER: Order! If you don't be quiet, I'll suspend question time. Deputy Premier.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. Rann interjecting:

The Hon. K.O. FOLEY: As the Premier just said, the arrogance of loss coming from over there. Madam Speaker, the Minister for Health has seen the documents in terms of the boxes of the documents, but he is not allowed, and nor am I, to sight the documentation until a number of things occur. That is, that senior public officials, observed by probity auditors, will systematically, over the next X period of time (I assume weeks) begin the process of sorting through the data and start to compile a briefing for the minister, myself and cabinet as to what the bids contain in general terms.

But, you have to remember this: this is a public-private partnership in which an interactive process will commence with bidders; that is, the government, through this process, has been interactive with bidders to ensure that they understand fully the government's requirements and they price that accordingly.

What will occur from here is that a detailed piece of work will be undertaken to determine the price that has been put forward in net present value terms, and it will also have to very methodically go through to see whether each bid is covering the scope of the project and represents fair value. It will be compared with the public sector comparator, and that information over time will be undertaken, and then, when the public officials, including my Treasury officers, believe it is appropriate for the government to be briefed, we will be. It would be, as I said earlier, both improper and, arguably, illegal for either I or the minister, or any elected member of government, to simply walk into the data room, go to the last page and have a look at the price.

Mrs Redmond interjecting:

The Hon. K.O. FOLEY: I'm sorry? I've just said that members of the government have not; correct. We have senior officials who are now working through. It would be improper, if not illegal, for us to undertake the level of perusing of documents as members opposite seem to think we should. That is why, in due course, when we are provided with that advice cabinet will consider it. When we are in a position to award, on recommendation of the steering committee of the senior official group, we will make that public.

Mr Williams interjecting:

The Hon. K.O. FOLEY: I've just said, Madam Speaker, that we will receive the advice on the cost—

Mr Williams interjecting:

The SPEAKER: Order! The deputy leader has an opportunity to ask questions later. The member for Newland.

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