Hospital Budget Overrun Compared To Desal Plant Deal

Hospital Budget Overrun Compared To Desal Plant Deal

South Australia Shadow Treasurer Iain Evans

Release Hospital Costing – What’s The Cost?

Victor P Taffa

Today’s release of the full cost of the Victorian Public Private Partnership (PPP) Desalination Plant at $19.4 Billion over 30 years to the Victorian Tax Payer illustrates why the full cost of the new Royal Adelaide Hospital PPP must be made Public, according to South Australia Shadow Treasurer Iain Evans.

“What will the new RAH cost SA tax payers over the next 30 years?”

Victorian Liberal Premier Ted Baillieu today announced that the former Victorian Labor Government’s PPP Desalination Plant will have a financial burden on the Victorian Tax Payer of $654 Million per year for the next 30 years.

Shadow Treasurer Iain Evans said the Victorian Desalination Plant PPP model is similar to the PPP to be used to build the new RAH which the SA Labor Government has refused to be scrutinised by the Public Works Committee or the Economics and Finance Committee.

 

“If the new RAH costs are proportionate to the Victorian PPP costs this will mean a $380 Million cost per year for SA tax payers or $11.4 Billion over 30 years.” Mr. Evans said.

“This is calculated by taking the figure for the Victorian Desalination Plant of $654 Million per year (the no water bought option) and then applying the cost proportion for the new RAH compared to the Victorian Desalination Plant.” Mr. Evans said.

                            Victorian Desal Plant                                  New Royal Adelaide Hospital

Capital Cost                                    $3.1 Billion                                    $1.8 Billion
Annual PPP Payment                 $654 Million                                  $380 Million*
Payments over 30 years              $19 Billion                                     $11.4 Billion*

*calculated based on Vic PPP 

“The Opposition are not saying that this is an exact figure however it illustrates the reason that the total costs of the PPP project both capital (to build) and operational (to run) need to be released.” Mr. Evans said.

“What will the new RAH cost SA tax payers over the next 30 years?” Mr. Evans asked.