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Legislative Council - Fifty-Fourth Parliament, First Session (54-1)
2018-11-07 Daily Xml
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KordaMentha

The Hon. I. PNEVMATIKOS (15:19): Supplementary question: the minister has previously taken on notice that there had been adjustments to what KordaMentha are being paid. Will the minister now inform the chamber exactly how much they are being paid?

The Hon. S.G. WADE (Minister for Health and Wellbeing) (15:20): I am going to answer this question, but I have to ask the President and the chamber whether we really want to have people standing up and asking a series of unrelated questions? The original question was about KordaMentha's expertise.

Members interjecting:

The PRESIDENT: Leader of the Opposition, you are the last person to be talking about respect. Minister, I will take this as a point of order. You answered very broadly in your original answer, and I am giving latitude to the member to ask it. Please answer it.

The Hon. S.G. WADE: The total contract value of KordaMentha in phase 1 and phase 2 of the financial recovery plan is $1.98 million. Given that the budget overspend for the Central Adelaide Local Health Network is around $300 million, if the CALHN budget overspend is eliminated the cost of KordaMentha's—

The Hon. K.J. Maher interjecting:

The PRESIDENT: Leader of the Opposition, I cannot hear the minister. If I cannot hear the minister, the Hon. Ms Pnevmatikos cannot hear the minister. The Hon. Ms Pnevmatikos has indicated that she cannot hear the minister. Show respect to your President and particularly to your own member. Minister, please continue.

The Hon. S.G. WADE: I might start again, because I don't want anybody to miss any of this.

The PRESIDENT: Feel free to start again, minister.

The Hon. S.G. WADE: The total contract value of KordaMentha in phase 1 and phase 2 of the Central Adelaide Local Health Network financial recovery plan is $1.98 million. That compares with $80 million spent by the former Labor government in contracts with the big four accounting firms and McKinsey. Given that the budget overspend for the Central Adelaide Local Health Network is around $300 million, if the CALHN budget overspend is eliminated the KordaMentha costs of phases 1 and 2 of the financial recovery plan would be recovered in 2½ days.

The Hon. I. PNEVMATIKOS: Point of order: I asked a question in terms of how much was being paid to KordaMentha, and the minister has told us how much KordaMentha is being paid.

The PRESIDENT: The Hon. Ms Pnevmatikos, I understand your point of order, but the person responding to the question has latitude to respond. That's the risk of asking a question of a minister. Minister.

The Hon. I. Pnevmatikos: But it's irrelevant.

The PRESIDENT: Please be seated.

The Hon. S.G. WADE: It's the risk of asking another stupid question. Given that the budget overspend for the Central Adelaide Local Health Network is around $300 million and if the CALHN budget overspend is eliminated, the KordaMentha costs of phase 1 and phase 2 would be recovered in 2½ days—2½ days. So in other words, with a $300 million budget overspend—

Members interjecting:

The PRESIDENT: Order!

The Hon. S.G. WADE: —in CALHN—

Members interjecting:

The PRESIDENT: Order!

The Hon. S.G. WADE: —left by the former Labor government, it would take 2½ days to recover the money that we have committed to KordaMentha so far. That means, if we start delivering savings from today, we would get our money back by Friday afternoon.

The Hon. K.J. Maher: Final supplementary?

The PRESIDENT: No, we have passed the time, Leader of the Opposition. You should realise by now that there is an hour allocated to questions without notice. Leader of the Opposition, feel free to ask a question at tomorrow's question time.

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