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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-09-20 Daily Xml
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Ministerial Statement

Royal Adelaide Hospital

The Hon. J.J. SNELLING (Playford—Minister for Health, Minister for the Arts, Minister for Health Industries) (14:09): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.J. SNELLING: On 25 August, the South Australian government issued proceedings in the Supreme Court against SA Health Partnership, the consortium responsible for delivering the new Royal Adelaide Hospital and their builder, HYLC. This action, which seeks to hold SAHP and HYLC to their contractual obligations with respect to the role of the independent certifier, comes off the back of a series of missed dates for technical completion. In taking this court action the government's objectives remain to ensure that a safe and high-quality hospital is opened and that SAHP provides a reliable date for technical completion.

Unfortunately, in this instance SAHP has chosen to ignore the contract, and so the government has been left with no option but to issue Supreme Court proceedings to hold SAHP to the contract. I do not intend to comment on the specific details of the court proceeding—

Mr Marshall interjecting:

The Hon. J.J. SNELLING: —but I will say that the government will go to court when necessary to make sure South Australian taxpayers get the high-quality and safe hospital that the contract requires.

The SPEAKER: The Leader of the Opposition is warned a first time.

The Hon. J.J. SNELLING: SAHP remains in major default. It has still not provided a reliable date for technical completion of the hospital and has still not provided a compliant cure plan showing how it will remedy major defects. The most recent cure plan, which has been provided by SAHP, is being independently assessed but, as we have said before, no decisions will be made about the timing of the hospital move until we have confidence that the time lines provided to us are realistic and reliable.

It is important to note that SAHP bears all risk in relation to any delays it causes in achieving technical completion.

Ms Chapman interjecting:

The SPEAKER: The deputy leader is warned.

The Hon. J.J. SNELLING: To date, SAHP have made several unsuccessful extension of time claims for hundreds of millions of dollars, with the independent certifier determining each and every one at zero days and zero dollars compensation. Safety must always be paramount at the new Royal Adelaide Hospital. The government is protected by a strong contract and it will continue to hold SAHP and HYLC to account in order to protect the people of South Australia.

Mr Pederick: It must be so hard to build a new building.

The SPEAKER: Was the member for Hammond seeking the call?

Mr Pederick: No, it's alright.

The SPEAKER: Then he must have been interjecting. He is called to order.

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