Posted on November 1, 2011
South Australians are being force to pay for Labor’s stuff-ups by forking out millions of dollars in compensation for projects cancelled by the State Government.
Yesterday Mr Weatherill announced Labor would pay $6 million to compensate the Newport Quays Consortium for terminating the contract to develop the Port Adelaide waterfront.
Taxpayers may also be forced to compensate Marathon Mining up to $15 million for Labor’s decision to disallow mining in Arkaroola after having granted Marathon an Exploration Licence for the area.
Labor has a history of compensating private enterprise for cancelled projects; the Government earlier wasted $10 million scrapping the prisons PPP in 2009.
Opposition Leader Isobel Redmond said the Newport Quays pay out showed Mr Weatherill, like his predecessors, treats taxpayers’ money as a private play thing.
“Labor has an appalling history of breaking contracts and cancelling projects and then having to compensate private enterprise at the expense of taxpayers,” Ms Redmond said.
“Labor also has a bad habit of exposing South Australian taxpayers to expensive, protracted legal battles with companies who have lost contracts when the Government changes its mind or runs out of money.
“Newport Quays is just another example of mismanagement by Labor - not only has Mr Weatherill signed up South Australians for at least $6 million in compensation, but he has also put taxpayers in the firing line for a lengthy and costly legal battle.
“The Auditor-General’s Report 2009-10 reveals that the Government’s obligation to the Newport Quays development was $44 million over the life of project. Mr Weatherill must explain how much taxpayers’ money has been wasted.
“Mr Weatherill has exposed South Australians to more unnecessary costs and has also broken his promise to “consult and decide”, not “announce and defend”. Instead he failed to notify the Newport Quays Consortium about his decision to terminate its contract.
“This is same old Labor – wasted money and broken promises, destroying the confidence of private investors and the business community and wasting the money of the broader community.”