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nRAH court battle a ‘certainty’ to end badly

Today’s Supreme Court hearing regarding the long delayed and massively over-budget new Royal Adelaide Hospital (nRAH) highlights just how poorly the project has been managed by the Weatherill Government.

 

 “Two years ago the Weatherill Government paid the private consortium building the hospital $68.6 million in a legal settlement to guarantee ‘certainty’ about the completion of the project,” said Shadow Minister for Health Stephen Wade.

“Today the hospital is more than seven months beyond its original completion date and the Weatherill Government is in court fighting with SA Health Partnerships about who will pay for the raft of problems that have plagued the project.

“What in the world was the $68.6 million payment for?

“The nRAH is more than $600 million over budget and was meant to be handed over to the Weatherill Government on the 18th of January.

“It is farcical that taxpayers are being left to carry the burden of the Government’s failure to manage the project on time and on budget.

“Establishing a private-public partnership to construct the nRAH was meant to protect taxpayers from cost blow-outs and delays.

“Instead taxpayers are going to wear a $600 million cost blow-out and that figure doesn’t include the mounting costs associated with the Enterprise Patient Administration System (EPAS) failure.

“Jack Snelling needs to explain why the Labor Government signed and managed the contract so badly that taxpayers’ are liable hundreds of millions of dollars in cost blow-outs.”