Millions wasted on Gawler Line debacle

October 15, 2014

Media Release


The State Liberals are calling on the Transport Minister Stephen Mulligan to apologise for the millions of taxpayers’ dollars that have been wasted due to delays on the Gawler Line Modernisation Project.

The Auditor-General’s Annual Report for 2013-14 released yesterday identified a $46.6 million write-down in expenditure on the Project due to the State Labor Government’s mismanagement of this project.

“This on again, off again, merry-go-round was started by the State Labor Government when it “indefinitely suspended” the Gawler rail electrification project in 2012,” said Shadow Minister for Transport Corey Wingard.

“As a result of Premier Weatherill’s actions $46.6 million spent on the Gawler electrification project has been written-off and a large portion of that money will need to be re-spent on similar work in the future.

“South Australia does not have money to waste, we need to make every dollar count.

“South Australians are already doing it tough, with the cost of living rising and record levels of State Government debt, this $47 million could have been spent delivering much needed services, transport infrastructure and road safety reforms.”

Auditor-General’s Annual Report for 2013-14 Volume 4 p 1287 states:

“In 2013-14 the Department assessed expenditure incurred to date on the project, which totalled $50 million. The review identified a write-down of expenditure totaling $46.6 million.

The Department assessed that costs totalling $28.6 million incurred for the project between Salisbury and Gawler were deemed to be obsolete or are not likely to provide any future economic benefit.

Further, the Department determined that given that the project is planned to recommence in 2017-18, a considerable portion of the design, scoping, project supervision, tendering and mobilisation costs for the Adelaide to Salisbury section of the line totaling $18 million were deemed to be obsolete and are likely to be in the most part reincurred when the project recommences.”

Authorised by Corey Wingard MP, Member for Gibson. Level 2, 1 Milham Street Oaklands Park SA 5046. ©Copyright / Legal / Login