COVID-19 stimulus projects classed as ‘shovel ready’ but some are six months away

Projects to get SA’s economy through the COVID-19 lockdown are treated as “shovel ready” despite being half a year away – but $100m has gone to local businesses.

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Infrastructure stimulus projects, which might take up to six months to start, are being treated as “shovel ready” by the State Government.

When the virus lockdowns first swept the nation, Premier Steven Marshall led the way by pledging a state-based stimulus package, saying urgent action was crucial to securing jobs and creating new ones.

In evidence to State Parliament’s Budget and Finance Committee, Under Treasurer David Reynolds said projects that took up to six months to actually get started could be classed as immediate but the Government was attempting to speed up decision making.

“If a project can’t commence after six months, we have usually not included that,” Mr Reynolds said.

“I have never had a conversation which included anything longer than that for any shovel-ready (projects).”

The Government’s stimulus has come in two parts, with the second $650 million phase of a $1 billion program more focused on direct cash support, including a $10,000 grant to small business that was hit.

Mr Reynolds said that $100 million from $550 million set aside for business and jobs support had “gone out the door already”, with $300 million earmarked to specific uses.

Infrastructure updates provided on request to The Advertiser show works have begun on a $52 million regional roads spend and $35 million South Eastern Freeway upgrade.

Thirty-seven local community projects have funding allocated and the Government expects to more than double the spend on resurfacing works this year to around $71 million.

Treasurer Rob Lucas said staff were working overtime to “channel money out the door as quickly as we can” and that pledged tax relief occurred as regular bills became due.

He said due process on building projects caused delays, and economic support was needed beyond the acute pandemic period.

Labor treasury spokesman Stephen Mullighan said the Government was failing to stimulate jobs fast enough.

“The Government can’t point to one infrastructure project that has actually started, and the only a quarter of promised small business grants have actually been paid,” he said.