Finishing South Rd freeway to take up to a decade, as State Government seeks to spread out multibillion-dollar build
Finishing the South Rd upgrade to deliver a non-stop freeway will take another decade, as the State Government deals with debt heading toward $22.2 billion - and another hospital to build.
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Finally fixing South Rd to deliver a non-stop freeway is set to take up to a decade, as the State Government seeks to spread out the huge cost of a multibillion-dollar build.
Treasurer Rob Lucas on Monday revealed his Mid Year Budget Review, which confirms state debt is already headed toward $22.2 billion by 2023 amid a big infrastructure spend.
That would be the highest on record, up from $13.1 billion today, and comes before the full cost and designs of the South Rd fix and new Women’s and Children’s Hospital are known.
Mr Lucas stressed that the Government’s increased debt was in line with that of other states, and comes at a time of low interest rates and amid calls from the Reserve Bank for pump-priming.
Asked how the Government would afford the additional debt of a hospital set to cost more than $1 billion and a South Rd fix anticipated to be priced at over $5 billion, Mr Lucas said the freeway plan would likely stretch over the decade to keep payments manageable.
“We are looking at ensuring that the north-south corridor project is extended over a period of up to 10 years, so that we can afford it over a long period of time,” Mr Lucas said.
“It is such a big project that we will need to do it in sections.
“It will have to extend over an eight- to 10-year period. It may well be not until 2030 that it is ultimately completed.”
Upgrades have already been announced or completed for much of what is supposed to be a traffic light-free ride from Gawler and Old Noarlunga.
The last remaining portion is to link the finished Torrens to Torrens with the Darlington Upgrade that is currently underway, a troublesome 10.5km stretch that runs through built-up suburbs and commercial districts.
In 2013, former prime minister Tony Abbott said he wanted the whole job done in a decade.
Transport Minister Stephan Knoll has been expected to announced before year’s end whether the Government will go with an above-surface or tunnel option.
It is also considering whether one long tunnel would be preferred, or two that are broken up by a return to the surface.
The Budget update also featured projected modest surpluses in all four years, as Mr Lucas anticipates staying $91 million in the black at the end of the current financial year.
He expects to post a $68 million surplus in 2021, $176 million in 2022 and $104 million in 2023.
Mr Lucas will retire at the 2022 election, but intends to deliver two more Budgets.
The Budget update also featured sluggish projections for jobs and economic growth.
Both GST and stamp duty returns from property sales have been significantly revised down.
Opposition treasury spokesman Stephen Mullighan said the Government should use the spare capacity from a larger-than-expected surplus this year to reverse fee increases.
Mr Lucas earlier this year announced he would jack up fees including speeding fines, mining fees and liquor licences to cover a half-a-billion-dollar GST cash collapse.
“The Marshall Liberal Government simply cannot justify these record hikes in fees, charges and taxes,” Mr Mullighan said.
“Sadly, it doesn’t appear they will be reversed.
“The State Budget may have been back in June, but the record hikes are still rolling out.
“The Marshall Liberal Government’s budget has hurt our economy, with unemployment up and economic growth and business confidence down.”
Mr Lucas also revealed $7.8 million to delay the planned closure of Service SA offices, which he has blamed on a clause in a privatisation contract left by the former Labor government.
