Labor backtracks on election promise for transport inquiry after ‘positive negotiations’

As part of an election pledge, Labor promised a transport inquiry within its first 100 days in office. That’s today and they’ve reneged. Was it the right call? Take our poll.

The state government has axed a budgeted Commission of Inquiry into the return of public train and tram services because the private operators involved have agreed to work collaboratively on the process.

As part of an election pledge, Labor had committed to establishing the inquiry within its first 100 days in office — which falls on Wednesday.

“In our first 100 days, we will establish an Independent Commission of Inquiry into the Return of Public Transport Services,” Premier Peter Malinauskas said during the election campaign.

But new Transport Minister Tom Koutsantonis said the need for an inquiry had been negated, after “positive negotiations” with Keolis Downer and Torrens Connect.

The Transport Department will now be charged with investigating whether any clauses were inserted into contracts with the two operators that would interfere with the government’s plan to cancel them.

The department will also conduct an internal assessment to investigate the feasibility of returning bus services to public ownership.

The report will be completed and presented to the minister by February 1 2023.

Mr Koutsantonis said cancellation of the inquiry was “a significant step forward in the government honouring its election commitment” and would save $1m of taxpayer money.

“I would like to thank the two consortiums for their co-operation to ensure a seamless transition to bring our trains and trams back into government hands,” he said.

“Public transport is the most efficient means of the South Australian public saving precious taxpayer dollars on expensive road upgrades and maintenance. Every time a member of the public catches public transport, everyone saves.”

But opposition transport spokesman Vincent Tarzia said “something smells fishy”.

“Before the election, Tom Koutsantonis was happy to slam Keolis Downer for poor services, but overnight he’s become their best friend,” he said.

“What’s more alarming than that is Tom Koutsantonis’ refusal to guarantee tearing up the contract won’t cost taxpayers a cent.

“There is no way Keolis Downer walks away without pockets stuffed with millions in cash.”

Mr Malinauskas said negotiations with Keolis Downer should result in “savings for the South Australian taxpayer” because “privatisation is costing more” than what it does to run train and tram services in public hands.

“We’re bringing it back into public hands to deliver a better service,” he said.

“But also to save money for the South Australian taxpayer, which is always a key objective.”

Should there have been an inquiry as promised? Picture: Tricia Watkinson

Labor policy documents published before the election say the promised inquiry would have investigated methods to reverse the privatisation of our rail network, reviewing clauses that could be used to end the deal.

That could include, the document said, failure to meet specified performance standards, breaches of the contract or review clauses.

The Keolis Downer contract, to operate the rail network from the end of 2021, was worth $2.1bn over 12 years.

The state opposition has recently said advice provided by the Transport Department suggests the contract exit fee could be as high as $70m if the deal is terminated before June 2023.

Treasury advised in February the cost of cancelling the contract would be at least $40m, the opposition said.

But Treasurer Stephen Mullighan said before the election he did not agree with those estimates.

He allocated $1m for the Commission of Inquiry in the state budget, which was handed down earlier this month.