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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
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Bills

Infrastructure SA Bill

Introduction and First Reading

The Hon. S.S. MARSHALL (Dunstan—Premier) (15:40): Obtained leave and introduced a bill for an act to promote the provision and management of infrastructure for the benefit of the South Australian community and economy, to establish Infrastructure SA and for other purposes. Read a first time.

Second Reading

The Hon. S.S. MARSHALL (Dunstan—Premier) (15:41): I move:

That this bill be now read a second time.

The Infrastructure SA Bill 2018 initiates a key economic reform, and its introduction fulfils another major commitment in the government's 100-day plan. The quality of a society's infrastructure is critical to its economic and social vitality. Sound investment in infrastructure can boost the productive potential of the economy and the growth of exports. The key to achieving this is long-term infrastructure planning that is robust and transparent. Whether it is growing our economy, building our schools, hospitals and roads, protecting our environment or enhancing our cultural and sporting facilities, we must plan and provide for the longer term.

We have seen what happens when plans are short-sighted, ill-conceived, badly implemented and driven by short-term political motives rather than by what is in the best interests of all South Australian citizens and their future. South Australians have suffered because of this in recent years, with poor project selection and destructive politicking leading to delays in the delivery of key infrastructure that benefits our economy and society.

My government is acting to prevent this sort of destructive behaviour and to instead deliver positive outcomes for South Australians today and into the future. This bill will establish an independent body, to be called Infrastructure SA, that will develop a long-term state infrastructure strategy and ongoing infrastructure plans that prioritise major projects. It will ensure that infrastructure the state needs for continued long-term economic growth is clearly articulated and well justified.

A clear pipeline of well-justified major projects will provide more certainty to businesses and support their efficient delivery. A clear pipeline will also help the state to secure funding from the commonwealth for the projects that are most important for South Australia's development. The previous administration spent far too much time fighting straw men about infrastructure funding when they should have been doing the work to prepare and present the case for new projects and new funding. Infrastructure SA will undertake four key activities:

1. Developing a 20-year state infrastructure strategy for adoption by government using consistent and robust analysis from public sector agencies and from infrastructure providers. This plan will be renewed every five years and will set the long-term vision for South Australia's infrastructure.

2. Developing annual capital intention statements for adoption by government that will prioritise potential major projects for government decision-making over a five-year time horizon. This will be based on input from public sector agencies consistent with the state infrastructure strategy and sound business cases and will feed directly into the government's annual budget process.

3. Maintaining oversight of delivery and performance for all projects with a capital value of $10 million and over, with a greater level of risk and performance reporting applied to major infrastructure projects valued at $50 million and over, including an ex-post evaluation.

4. Providing policy advice relating to infrastructure planning, delivery and use. This will include advice on appropriate funding and financing models.

The establishment of Infrastructure SA is not meant to absolve ministers and their agencies of their obligations to plan, own, operate and deliver good infrastructure. Rather, it will provide an assurance role, ensuring that business cases for major infrastructure projects are sound and that they are considered in the context of an integrated long-term state infrastructure strategy. As part of its assurance role, Infrastructure SA will have the capacity to provide advice to government on unsolicited infrastructure proposals.

The bill reflects the fact that infrastructure provision is not the sole province of the state government. Significant railways, roads, ports, hospitals, schools and utilities are owned and operated by other tiers of government or the private sector. A 20-year state infrastructure strategy will need to reflect a whole of state perspective, rather than just that of the state government as an infrastructure provider. The bill therefore includes information-gathering powers modelled on the Essential Services Commission Act 2002. It is intended that these powers will be used sparingly by Infrastructure SA, if at all. Overwhelmingly, major infrastructure owners and users will want to support its work because it provides a clear road map for major projects over a 20-year horizon, producing better outcomes for all stakeholders.

Critical to the success of Infrastructure SA will be its ability to maintain its independence and ensure that we take the politics out of infrastructure planning and development. The bill proposes to appoint an independent Infrastructure SA board to oversee the development and implementation of the state infrastructure strategy. The Infrastructure SA board will combine the expertise of the public and private sectors in developing our major infrastructure plans for the future. The board will be free to speak out when it disagrees with the infrastructure decisions made by the government.

The board will be led by a suitably eminent and experienced independent chair and three independent non-executive directors with industry experience and relevant qualifications. These members will be selected on the basis of experience, insight and good standing. The board will also include chief executives of core agencies—the Department of the Premier and Cabinet, the Department of Treasury and Finance and the current Department of Planning, Transport and Infrastructure—as ex officio members.

The weighting of private and public sector members is balanced to ensure that the objectivity and independence of the Infrastructure SA board is maintained, but that Infrastructure SA remains connected and relevant to government decisions. Infrastructure SA will be supported by a small team of permanent staff, supplemented with secondments and external support as required. I look forward to support in both places for an initiative that is critical to underpinning the state's future. I commend the bill to members and I seek leave to insert the explanation of clauses into Hansard without my reading it.

Leave granted.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

3—Interpretation

This clause contains the definitions of words and phrases necessary for the interpretation of this measure. In particular, a major infrastructure project and capital investment value of a project are given defined meanings. A major infrastructure project is—

a project to provide infrastructure that has a capital investment value of $50 million or more or, if some other amount (whether greater or smaller) is prescribed by regulation for the purposes of this definition, that other amount; or

a project, or a project of a class, to provide infrastructure that is determined by the Minister to be a project, or project of a class, requiring oversight or coordination by Infrastructure SA.

The capital investment value of a project includes all costs necessary to establish the project, including design, construction and land costs (but not including GST).

Part 2—Infrastructure SA

Division 1—Establishment

4—Establishment of Infrastructure SA

This clause provides for the establishment of Infrastructure SA (ISA) as a body corporate.

5—Objects and functions

This clause provides for the objects and functions of ISA. The objects of ISA are—

to promote such efficient, effective and timely coordination, planning, prioritisation, delivery and operation of infrastructure as is necessary for the economic, social or environmental benefit of the State; and

to promote the adoption and use of policies, practices, information and analysis to support sound decision-making in relation to infrastructure.

ISA is given the following functions to further its objects:

(a) to provide the Minister with the strategies, statements and plans in accordance with Part 3 of this measure;

(b) to review and evaluate proposals for major infrastructure projects by public sector agencies;

(c) to assess the risks involved in planning, funding, delivering and managing infrastructure, and the management of those risks;

(d) to monitor the delivery of—

major infrastructure projects and other infrastructure projects identified in strategies, statements or plans adopted by the Minister under Part 3 of this measure; and

any other infrastructure project at the request of the Minister;

(e) to carry out reviews of—

completed major infrastructure projects; and

any other completed infrastructure project at the request of the Minister;

(f) to provide advice to the Minister—

in respect of infrastructure submissions that may be made by the State and its agencies to the Commonwealth Government and other bodies; and

on appropriate funding and financing models for infrastructure; and

on economic or regulatory impediments to—(A)the efficient delivery of particular infrastructure projects or infrastructure projects of a particular class; or(B)the efficient use of infrastructure; and

on any other matter relating to infrastructure referred by the Minister;

(g) to administer this measure;

(h) to perform any other function conferred on ISA under this measure or an Act;

(i) to do anything incidental to any of the preceding functions.

6—Powers

This clause provides that ISA has all the powers of a natural person.

7—Statement of Expectations

This clause provides that the Minister must, after consultation with ISA, prepare a statement setting out the Minister's expectations in relation to the operations and performance of ISA. Such a statement may be reviewed and amended at any time after consultation with ISA.

8—Independence

This clause states that except as provided, ISA is not subject to Ministerial direction in the performance of its functions.

9—Infrastructure SA may publish statements, reports and guidelines

This clause provides that ISA may publish statements, reports and guidelines relating to the performance of its functions.

Division 2—Board

10—Board of Infrastructure SA

This clause provides for the establishment of a board of directors as the governing body of ISA.

The board will consist of 7 members, of whom 4 will be appointed by the Governor on the nomination of the Minister and the others who will be the Chief Executives ex officio—

of the Department of the Premier and Cabinet;

of the Department of Treasury and Finance;

of the administrative unit of the Public Service that is responsible for assisting a Minister in the administration of the Planning, Development and Infrastructure Act 2016.

There is a requirement that the members of the board must, collectively, have the necessary qualifications, expertise and experience to carry out the functions of ISA.

11—Conditions of membership

This clause provides that the appointed members will be appointed on conditions determined by the Governor for a term not exceeding 5 years specified in the instrument of appointment. The usual provisions relating to the removal of vacancy of membership apply.

12—Remuneration

This clause provides that an appointed member of the board will be entitled to remuneration, allowances and expenses determined by the Governor.

13—Meetings etc of board

This clause makes provision for the board's meetings, proceedings, quorum, etc, in the usual terms.

14—Validity of acts

This clause provides that an act or proceeding of the board is not invalid by reason only of a vacancy in its membership or a defect in the appointment of a member.

Division 3—Related matters

15—Delegations

This clause sets out a power for ISA to delegate its functions or powers to a particular person or body, or to the person for the time being occupying a particular office or position, and makes provision for a delegation to be further delegated if the instrument of delegation so allows.

16—Staff

This clause facilitates arrangements for staffing of ISA by persons employed in the Public Service of the State and assigned to assist ISA and by persons appointed by ISA on terms and conditions determined by ISA.

17—Honesty and accountability

This clause provides that the appointed members of the board are to be senior officials for the purposes of the Public Sector (Honesty and Accountability) Act 1995.

18—Accounts and audit

This clause sets out the requirement for ISA to maintain proper records of its accounts and provides for the auditing of ISA's accounts by the Auditor-General.

19—Annual report

This clause makes provision in relation to ISA's annual report.

Part 3—Infrastructure planning

Division 1—20-year State Infrastructure Strategy

20—Preparation

This clause provides that ISA must prepare a 20-year State Infrastructure Strategy and submit it to the Minister within such time as the Minister directs. The Strategy must be kept under review and revised at least once every 5 years.

21—20-year State Infrastructure Strategy

This clause provides that the 20-year State Infrastructure Strategy must—

be consistent with Infrastructure SA's objects; and

assess the State's existing infrastructure; and

consider relevant current State Government strategies; and

consider relevant information provided by the public, private and not-for-profit sectors; and

consider trends in infrastructure provision; and

assess the needs, strategic goals and priorities for infrastructure in the State for the next 20 years.

The Strategy may include—

a statement of social, economic and environmental objectives with respect to infrastructure within the State; and

an assessment of the options relating to planning, funding, delivering and managing infrastructure in the State to address the State's needs, strategic goals and priorities for infrastructure for the next 20 years; and

the identification of action that would best address the State's needs, strategic goals and priorities for infrastructure for the next 20 years; and

such recommendations as Infrastructure SA thinks fit.

22—Adoption of 20-year State Infrastructure Strategy

This clause provides for the adoption of the 20-year State Infrastructure Strategy by the Minister, with or without amendments. The Minister may also refer the Strategy back to ISA for further consideration. If the Minister makes an amendment to the Strategy before adopting it, ISA may advise the Minister that it does not agree with the amendment and make that advice available to the public.

Division 2—Statement of Capital Intentions

23—Preparation

ISA must prepare a Statement of Capital Intentions identifying the specific major infrastructure projects to be undertaken in the State as a priority within the next 5 years. The Statement must be prepared and submitted to the Minister within such time as the Minister directs and be kept under review and revised annually.

24—Statement of Capital Intentions

This clause provides that a Statement of Capital Intentions may include the following in relation to the identified priority major infrastructure projects:

the reasons for selecting the major infrastructure projects as priority projects;

the estimated cost of the priority projects;

the recommended funding and delivery arrangements for the priority projects;

the estimated time-frame for the delivery of the priority projects.

In preparing the Statement, ISA must have regard to the following:

the 20-year State Infrastructure Strategy adopted by the Minister;

any proposal for a priority project provided to ISA by a public sector agency.

25—Adoption of Statement of Capital Intentions

This clause provides for the adoption of the Statement of Capital Intentions by the Minister, with or without amendments. The Minister may also refer the Statement back to ISA for further consideration. If the Minister makes an amendment to the Statement before adopting it, ISA may advise the Minister that it does not agree with the amendment and make that advice available to the public.

Division 3—Preparation of additional infrastructure strategies, statements or plans

26—Preparation

This clause provides that, in addition to the preparation of the 20-year State Infrastructure Strategy and the Statement of Capital Intentions, ISA—

may, from time to time, on its own initiative; and

must, on the request of the Minister,

prepare other strategies, statements or plans relating to infrastructure in the State.

27—Adoption

This clause provides for the adoption of other strategies, statements or plans submitted by ISA by the Minister, with or without amendments. The Minister may also refer any such strategy, statement or plan back to ISA for further consideration. If the Minister makes an amendment to a strategy, statement or plan before adopting it, ISA may advise the Minister that it does not agree with the amendment and make that advice available to the public.

28—Publication of additional infrastructure strategies and plans

This clause provides that ISA may publish a strategy, statement or plan prepared on its own initiative under this Division on its website.

Division 4—Collection and use of information

29—Power to require information

This clause provides ISA with the power, by written notice served personally or by post, to require a person to provide ISA with such information and material as may be reasonably required for the purposes of assisting ISA in the performance of its functions under this measure. It is an offence for a person to fail to provide the information within the time (which must be reasonable) and in the manner specified by ISA. A person cannot be compelled to give information under this proposed section if the information might tend to incriminate the person of an offence or is privileged on the ground of legal professional privilege.

30—Obligation to preserve confidentiality

This clause provides that information gained under this proposed Part of the measure that could affect the competitive position of a person, or is commercially sensitive for some other reason, is to be considered to be confidential information and a person performing a function under this measure will be guilty of an offence if the person discloses such information otherwise than as authorised under proposed subsection (2). ISA may, however, disclose confidential information if of the opinion that the public benefit in making the disclosure outweighs any detriment that might be suffered by a person in consequence of the disclosure. Information classified by Infrastructure SA as being confidential under this proposed section is not liable to disclosure under the Freedom of Information Act 1991.

31—Statutory declarations

This clause provides that ISA may require a person who is required by or under this measure to give information to ISA to verify the information to be given by statutory declaration and, in that event, the person will not be taken to have given the information as required unless it has been verified in accordance with the requirements of ISA.

Part 4—Miscellaneous

32—Service

This clause provides for service of documents under this measure in the usual terms.

33—Regulations

The proposed section facilitates the making of regulations by the Governor for the purposes of the scheme.

Debate adjourned on motion of Mr Odenwalder.

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