SA Treasurer Rob Lucas says Budget cuts won’t hurt major projects

Treasurer Rob Lucas has pledged major projects like South Rd and Lot Fourteen won’t be affected as he attempts to shore up state coffers created by a $517 million GST shortfall.

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Treasurer Rob Lucas says he won’t “turn off the tap” and halt major infrastructure projects in a race to balance the State Budget, but further public sector cutbacks are looming as three troubled departments fail to meet savings.

As Mr Lucas grapples with a Budget black hole created by a $517 million GST shortfall, he’s also confirmed the health and child protection departments are failing to balance their books despite bailouts granted last year.

The Treasurer said the $2.6 billion South Rd project won’t be affected. Picture: DPTI

Mr Lucas on Wednesday night told The Advertiser the Budget would boast an infrastructure jobs drive.

“We could have turned off the tap in terms of major infrastructure projects and reduced the impact on state debt, or chosen to accept a continuing increase,” said Mr Lucas.

“The Government has taken the choice in this particular Budget of continuing a major infrastructure program, and accepting that there will be some further increase in the level of the state’s debt.

“We think major projects like South Rd and Lot Fourteen and those sorts of education and health spending are important.”

State Treasurer Rob Lucas says he won’t “turn off the tap” and halt major infrastructure projects in a race to balance the State Budget.

The Federal Budget pledged money for a range of SA building programs that require matching state money.

In addition to $2.6 billion for the South Rd upgrade, which will become the single biggest infrastructure project in SA’s history, the Federal Government has also backed several suburban road upgrades and removal of level crossings.

Under the State Budget released last year, total public sector debt is already forecast to peak at $17 billion in 2022.

Mr Lucas said it was being recognised nationally that state governments must keep up construction spending to offset housing market fragility.

In addition to spending problems in health and child protection, Mr Lucas has branded public training provider TAFE, which faced an accreditation scandal under the former Labor government, as a “cot case” that will take time to turn around under a new chief executive and board.

In last year’s Budget, the first since Premier Steven Marshall was elected, Mr Lucas announced $864 million in savings but quarantined some frontline social services.

Mr Lucas has warned the loss of GST means “there will be further savings measures which we have to implement in the State Budget”.

“It’s a balancing act and obviously the final decisions … will be revealed on Budget day,” he said. “They (SA Health) are not meeting all of the saving tasks that have been outlined. The Budget will outline what further assistance we provide.”

Mr Lucas said the Child Protection Department was running more efficiently but facing “an increasing number of young people that they actually have to look after”.

The Opposition says the number of children in care has “skyrocketed” since the election last year, reaching a record 3909 in March. Mr Lucas said child protection was now getting the support it previously had been starved of as “investigations are being undertaken and the department is intervening earlier where necessary”.

Opposition treasury spokesman Stephen Mullighan said the State Government had already broken its election promise of lower costs and better services and it appeared worse was to come.

“They’ve spent windfalls before they came and had to play catch-up by putting up fees and cutting services,” he said.

The State Budget will be handed down on June 18.