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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-04-07 Daily Xml
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ROYAL ADELAIDE HOSPITAL

The Hon. I.F. EVANS (Davenport) (14:32): My question is to the Minister for Health. As the government announced the Lyell McEwin stage C redevelopment cost of $201 million, which included non-building costs such as market risk and professional contractor fees, why is it not reasonable for taxpayers to believe that, when the government announced the new Royal Adelaide Hospital cost of $1.7 billion, this cost, too, would include those non-building items?

The Hon. J.D. HILL (Kaurna—Minister for Health, Minister for Mental Health and Substance Abuse, Minister for the Southern Suburbs, Minister Assisting the Premier in the Arts) (14:33): I thank the member for the question. I invite him, as I invited the Leader of the Opposition, to table or show the document that he relied on yesterday, the alleged document that he relied on yesterday. Show it to the public. Be honest with the public of South Australia. If you think you have got something, show it to the media, show it to the public. They will not do it, Madam Speaker, because they know it undermines the argument that they are making.

In relation to the Lyell McEwin project and other government-built projects, I am advised that it includes all costs that contribute to the capital costs but not only ongoing maintenance costs. The capital costs include things such as contingencies, professional fees, engineering fees, DTEI fees, contract management fees and builders' fees for managing contractor. It is like the cost of building a house and having the connection fees, development application fees and all the other levies. The net cost of borrowing or maintaining of costs, of course, is not included, and that is the distinction.

What we are getting is an arrangement for the management company of the RAH to look after the non-medical part of that hospital for 35 years. We do not pay an up-front sum of money. We pay every quarter, effectively, a lease fee for access to that hospital, with all the conditions that are provided. That is what we get out of a PPP arrangement. It is different from the arrangements in place at the Lyell McEwin and all the other hospital upgrades, as I am sure the member for Davenport understands. If he would show the document that he has, the public would understand; he understands that, too.

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