Transport Minister’s office says train privatisation will claw back $118 million over 12 years – about $9.8 million per year

Transport Minister Corey Wingard estimated on the spot that privatising the train network would save hundreds of millions a year. He was an entire dollar figure off.

Mr Wingard’s office later said the initiative would claw back $118 million over 12 years – meaning it would save an average of about $9.8 million annually. Picture: Tricia Watkinson

Privatising the operation of Adelaide’s train network will save taxpayers an average of almost $10 million a year, the State Government says.

The savings figure was revealed after Transport Minister Corey Wingard incorrectly told ABC Radio on Tuesday morning that the controversial privatisation would save South Australians “hundreds of millions of dollars a year”.

He also did not know how much the current train service cost per year, saying “I don’t have that exact figure in front of me”.

Mr Wingard’s office later said the initiative would claw back $118 million over 12 years – meaning it would save an average of about $9.8 million annually.

Corey Wingard incorrectly told ABC Radio on Tuesday morning that the controversial privatisation would save South Australians “hundreds of millions of dollars a year”. Picture: NCA NewsWire / Kelly Barnes

It came after Labor called on Mr Wingard explain himself.

“Corey Wingard is the Transport Minister – He must be able to answer this very straightforward question: how much does it cost to run the train network every year?” Deputy Opposition Leader Susan Close said.

“This morning, he repeatedly claimed taxpayers would save hundreds of millions of dollars a year.

“If he knows that, he must know how much it costs to run the trains.

“Something just doesn’t add up here.”

The Government last month announced it had awarded an eight-year, $2.14 billion contract to Keolis Downer to operate the train network from the end of January 2021.

It said that while Keolis Downer would run the network, infrastructure and ticket pricing would remain under the Government’s control.

“The contract with Keolis Downer is about delivering better services for train commuters,” Mr Wingard said.

“We’re delivering better services and savings on top of that are a bonus but savings mean we can keep building South Australia and creating jobs.”