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Civil Contractors Federation SA

CCF SA 2019-20 State Budget Response

INFRASTRUCTURE
Against a background of a slowing economy and falling government revenues, the budget recognises the proven job creating and economic stimulus made possible from public investment in infrastructure. The CCF SA view though is the budgeted investment is required over the next twelve months, not in future years.

Unfortunately, most of the investment will occur over a number of years, in some instances the project construction phase is not scheduled to occur for up to ten years. This issue, in addition to the capacity constraints of the main construction agency of the government (DPTI), to bring construction projects to market in a timely manner will greatly reduce the power of the budget as a social and economic driver and job creator. Many of the construction projects approved in the 2018/19 state budget are still to come to market!

The CCF SA is calling on the state government to bring forward as much work as possible and establish a government/industry task force to explore ways in which the procurement process can be accelerated in order to bring projects to the market in a timely manner.

Putting aside the long lead times mentioned above it is pleasing to see the government recognise the importance of building roads to save lives, bust congestion, reduce travel times and improve productivity. Unfortunately two of the most important regional roads haven’t received the consideration they warrant. The Augusta Highway, extending up the spine of the state, arguably the most important transport and freight corridor we have did not rate a mention. This road requires duplication as a matter of urgency. On average this road kills ten people and seriously maims another twenty every year. While it is pleasing to see provision for the duplication of the Victor Harbor Road to McLaren Vale we are disappointed that funding for planning the continuation of the duplicated road to Victor Harbor has not been included in the budget.

The budget provides $237 million over four years for regional road maintenance. This is a long way short of the backlog estimated at up to $800 million. Deferring road maintenance is a false economy. At some point the road will need to be reconstructed at a much higher cost.

TRAINING
In the 2018/19 state budget, a rescue package totaling $110 million went to TAFE SA. This budget we see another $25.2 million of tax payer money earmarked for TAFE SA. What happened to the election promise to focus government support on the private training sector leaving the public trainer to focus on the delivery of courses and programs private trainers were unable or unwilling to provide? Throwing more and more money at TAFE SA to cover operational costs and maintain underutilised campus infrastructure is a poor investment decision.
The private training sector was devastated by the previous government and is still struggling to play that very important role in a free market economy of giving people choice. TAFE SA, subsidised by the tax payer, should not compete with private trainers for business.

SMALL TO MEDIUM SIZE BUSINESSES
The budget was a missed opportunity to provide relief for small to medium size businesses (collectively the largest employer in the state). This could have taken the form of an additional payroll tax break, incentives to employ more people, and subsidies to assist in the payment of high water and energy costs.

NEW PROJECTS
$11M – Dublin Saleyard Access
$6M – Kroemers Crossing Roundabout
$61M – Cross and Fullarton Road Intersection Upgrade
$35M – Glen Osmond Road Fullarton Road Intersection Upgrade
$35M – Goodwood, Springbank and Daws Road Intersection Upgrade
$19M – Grand Junction & Hampstead Roads Intersection Upgrade
$13M – Main North, McIntyre, Kings Road Intersection Upgrade
$19M – Main North Road, Nottage Terrace Intersection Upgrade (Scotty’s Corner)
$98M – Portrush Road Magill Road Intersection Upgrade
$231M – Torrens Road Ovingham Level Crossing Intersection Upgrade *
$8M – Naracoorte Roundabouts
$5.4B – Torrens to Darlington (North-South Corridor)
$7M – Thomas Foods International Facility (total project value $14M)
$8M – Tonsley Rail Line (new station)
$52.4M – Protect and Secure Metropolitan Beaches
$20M – Granite Island Causeway Refurbish

Previously announced projects have a projected value of $6.61B. For the 2018-2019
*Note that the total budget allocation for new projects is $5.97B, however only $92M is forecast to be spent in the 2019-2020 period. ‘Shovels in ground’ new projects (5) are worth $36M, which are estimated for completion in the June 2020 Quarter.

Previously announced projects have a projected value of $6.61B. For the 2018-2019 financial the estimated result of expenditure is $851M, falling short of the forecasted $1.29B that was announced year last budget. The budgeted expenditure for the 2019-2020 financial year is $929M, with very few in the construction stage.

EXISTING PROJECTS
$1.9M – Cape Jervis Breakwater (est. comp. June 2020)
$200M – Duplication Joy Baluch Am Bridge (est. comp. June 2021)
$125M – Extension of Tonsley Rail Line to Flinders Medical Centre (est. comp. June 2020)
$5.2M – Fix Candy Road and South Road Intersection (est. comp June 2020)
$60M – Gawler East Link Road Project (est. comp. June 2020)
$615M – Gawler Line Electrification Project (est. comp. June 2022)
$20M – Golden Grove Road Upgrade (est. comp. June 2020)
$305M – Main South Road Duplication Seaford to Aldinga (est. comp June 2023)
$20M – Mitcham Hills Road Upgrade (est. comp June 2022)
$33.5M – North East Park n Ride (est. comp. June 2020)
$667M – North South Corridor Darlington (est. comp. June 2020)*
$354M – North South Corridor Regency Road to Pym Street (est. comp. June 2022)*
$868M – North South Corridor, Northern Connector (est. comp. June 2020)*
$151M – Oaklands Road Crossing Grade Separation (est. comp. June 2020)
$14.6M – Penola Bypass (est. comp. June 2020)
$6M – Port Road / West lakes Boulevard / Cheltenham Parade intersection upgrade (est. comp. June 2020)
$6.5M – Port Stanvac Wharf and Foreshore (est. comp. June 2020)
$90M – Port Wakefield Overpass and Highway Duplication (est. comp. June 2022)
$7.5M – Tulloch Road Intersection Upgrade

FUTURE ALLOCATIONS
$1.1b over 8years for Regional Road Projects and Transport infrastructure upgrades, this includes:
• $250M Princes Highway upgrade
• $125M Eyre Peninsula Roads upgrade including the Eyre Highway from Pt Augusta to Perth
• $87.5M Sturt Highway from Renmark to Gawler
• $62.5M Barrier Highway from Cockburn to Burra
• $1M Road and Infrastructure upgrades on Kangaroo Island
• $143M Shoulder sealing and overtaking lanes
• $92M Duplicate Victor Harbor Road from Main South Road to McLaren Vale
• $55M Horrocks Highway overtaking lanes and shoulder sealing
$26.5M – Widening of Flagstaff Road
$171M – Brighton Road, Hove Level Crossing *

CLICK HERE
*CCF SA 10 Now Project Opportunities – See CCF SA Media Release 15.06.2019

 

 


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Civil Contractors Federation (CCF SA) is an industry association that promotes, protects and represents companies and other organisations with business interest in civil (construction) contracting. The CCF SA helps its Members obtain more work, work more effectively and make more money.