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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2022-02-09 Daily Xml
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SA Pathology

The Hon. T.A. FRANKS (15:20): I seek leave to make a brief explanation before addressing a question on the topic of SA Pathology to the Minister for Health and Wellbeing.

Leave granted.

The Hon. T.A. FRANKS: In April 2020, we saw the announcement that SA Pathology will be moving to a new state-of-the-art laboratory in the CBD's health and biomedical precinct. The advance tender notice for this was released on Monday 20 September 2021. That tender calls for a private consortium to buy the land and build the building to then lease to SA Pathology. The lease payments will then need to be paid from SA Pathology revenue. That this could put further cost pressures on SA Pathology and create pressure to cut staff even further have been some of the concerns raised with me.

Pathology is of course part of health care and therefore it is a normal part of health care and expected that the government covers some of that cost. Certainly, it has been raised with me that expecting SA Pathology to somehow pay for itself would be unrealistic. Workers are also concerned that, if most of SA Pathology is now under one roof, it will be easier to sell it off.

Therefore, my questions to the minister are: why did the government decide for a 'build and leaseback' model for the new SA Pathology building? Going forward, who will pay the lease on the new SA Pathology building? Once built, is that building expected to reduce costs to SA Pathology, increase costs, or is it revenue neutral?

The Hon. S.G. WADE (Minister for Health and Wellbeing) (15:21): I thank the honourable member for her question because it does highlight, yet again, this government's commitment and investment in SA Pathology. The proposed development for SA Pathology and the other new laboratories will give this world-class organisation the world-class facilities that it deserves.

In terms of why this particular financial approach was taken as a result of discussions within government, I presume it was the Infrastructure Cabinet Committee that has been shepherding this process. As health minister, in effect, I am the client minister, but I can assure you that that committee is rigorous, as is the Budget Cabinet Committee, in driving value for money for taxpayers.

The appropriate business cases are done throughout projects, whether that's an outlined business case, detailed business case, or otherwise, to make sure that it is value for money. As the client minister in this context, as the minister responsible for SA Pathology, I am sure that what is being pursued will mean a good deal for not only SA Pathology but for all its staff and all its clients.

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