Posted on: 14 June 2024
Labor’s decisions to review and redesign both the North-South Corridor project and the new Women’s and Children’s Hospital have directly led to the $44 billion debt bomb revealed in Thursday’s State Budget.
Peter Malinauskas’ changes to designs and delays in starting the state’s two major infrastructure projects have caused combined cost blowouts of nearly $7 billion which has directly led to state debt skyrocketing over the forward estimates.
South Australian taxpayers will have to fork out more than $5 million a day just to cover the interest repayments on the $44 billion debt.
With half the cost of the North-South Corridor project and new Women’s and Children’s Hospital still sitting outside the forward estimates, there is a real chance under Labor state debt could climb to $50 billion.
Shadow Treasurer, Matt Cowdrey, said if Labor hadn’t changed the design for both major projects, the new Women’s and Children’s Hospital would nearly be finished and tunnels would be starting to be built between the Torrens and Darlington by now.
“When Peter Malinauskas was elected he ripped up the existing designs for the North-South Corridor and the new Women’s and Children’s Hospital and started again,” Mr Cowdrey said.
“This decision led to cost blowouts of nearly $7 billion combined for both projects which Peter Malinauskas has simply put on the state’s credit card.
“Labor’s $44 billion debt bomb is a bill every South Australian will have to pay with interest servicing repayments alone ballooning to more than $5 million a day.
“Peter Malinauskas has burdened South Australians with this debt bomb despite raking in an extra $9 billion in additional revenue.”
Shadow Minister for Infrastructure and Transport, Vincent Tarzia, said Labor has mismanaged both the North-South Corridor and new Women’s and Children’s Hospital projects from the start.
“Ever since Labor scrapped designs for the state’s two major infrastructure projects we’ve seen debacle after debacle,” Mr Tarzia said.
“There have been delays and cost blowouts, more property acquisitions and who could forget the on-going mess of relocating the police horses from Thebarton.
“Peter Malinauskas’ mismanagement of these two critical infrastructure projects has directly led to state debt ballooning to more than $44 billion over the coming years.”