6 minute read
THE FORECAST FOR CIVIL 2022-2026
WITH MP & SHADOW MINISTER FOR INFRASTRUCTURE & TRANSPORT TOM KOUTSANTONIS
DATE
10 March 2022
The attendees at the second event were equally keen to hear what the future could hold for the civil construction industry. Following the usual preliminary formalities of acknowledging the event sponsors, Tom Koutsantonis, the Shadow Minister, commented on the current Liberal government’s performance with regards to the civil industry. And what a Labor government could do better to improve the present situation – by creating and keeping jobs locally via TIME
4:30pm – 7:30pm
reforming the procurement process. He also outlined strategies to address the ramping crisis. Unsurprisingly, at question time, most people wanted a clearer picture on how the opposition party could offer a better future for the state.
With discussions lingering long after the session, it would be fair to say people are now left with so much to ponder on before exercising their electoral rights on 19 March. VENUE
The Gallery, Waymouth Street
A big Thank You again to APEX Vac Solutions (Major Event Sponsor), and MEH Plant & Equipment (Supporting Event Sponsor), for making the occasion a success!
THE INSIDE SCOOP
Part II of The Forecast for Civil featured Tom Koutsantonis, MP & Shadow Minister for Infrastructure and Transport. Once known as SA’s naughtiest MP, the former taxi driver-turned-treasurer and then MP, Turbo Tom has been in politics for 24 years and is still going. “Maybe…” he said with a wry smile. The tragic Liverpool supporter said it was important, as the opposition, to gain access to decision makers on the $17.9 billion for civil and civil associated work, to “Get what we want from infrastructure.”
As Treasurer when Labor was in government, his frustration now is getting to do the projects that will allow state businesses to grow. Projects that are about capability. “We can buy eight submarines tomorrow or build them ourselves...” remarked Koutsantonis.
According to him, the government has been spending $10 billion on building 9.9km of roads, with most of the work going to international contractors, while ongoing boardroom arguments are fuelling questions on who is raking in the profits.
said Koutsantonis.
At the time of writing, the State Election had not taken place. According to the Shadow Minister: 1 The biggest spender is the state government, then the local government and lastly, the private sector. We have a procurement of $8.5 billion. Labor would have a suite of reforms to redirect 5% of that in public tenders each year to boost procurement flow to South
Australian companies – a big increase in gross state product! 1 We must make sure that the major infrastructure projects that we sign off on will ensure they deliver 90% minimum of work provided for. And that technology transfers are in place to benefit South Aussies. 1 Present government does things differently.
Even with school uniforms, we are buying them from interstate – WHY? Uniforms should be SA made, where possible, for government agencies. 1 A Labor government will pay contractor invoices within 15 days or face the penalty, and require lead contractors delivering government projects to pay sub-contractor invoices within 15 days. 1 A Labor government would have departments undergo training to understand the processes of contracts and tenders.
1 Chief executives can sign off on tender outcomes that don’t go to SA companies. We must make them responsible. And accountable to the government.
The opposition is sick of people who have won contracts with no one knowing how or why they were successful. “We also want to know why we have been dealing with the middlemen. DPTI has lots of public servants. Why aren’t they carrying out capability assessment?” he asked.
“Why when people have been unsuccessful with tenders… they should know.” With a more transparent process, and if he could find out why some people didn’t win their tenders, he could talk to them and help them move forward. The Shadow Minister also wondered why we are buying materials like glass, tiles, windows etc from outside the state when we manufacture them in the state.
The government needs to train people to apply for tenders. “Information, sunlight, daylight for tendering, are good!” He noted that schools here are built by other states. A Labor government will only use local architects, surveyors etc on government projects. Decision makers would also be South Australians as “We understand South Australia better. I want that capability here! A state-based industry!” So, the priority would be to reform procurement policies. Labor would enforce 90% labour hours minimum by SA workers on major infrastructure projects. And apprentice commitments would mean 20% minimum of labour hours allocated for apprentices and trainees. WHAT TRANSPIRED AT QUESTION TIME
On where a Labor government would like to spend our money: We want to show how we can invest our infrastructure money on road projects, and on health in the next 4 years, and not on building a basketball stadium costing $662 million. On ending ramping: We don’t promise ending ramping completely, but we will slow it by increasing the number of hospital beds, doctors, and nurses, boost mental health initiatives, and increase hospital facilities. Today, ambulances are rarely on time. There were cases of late ambulance arrivals, costing lives. On regrets: The lack of consultation with the public. We can impose laws to do things our way, but in the past, we could have been gentler and talked more to the community. An example was not dealing well enough with the community feedbacks when the South Road project was underway during Labor’s term of government. “So, we haven’t done things right,” confessed the Shadow Minister. “We must learn to turn up and listen to people so we can do the right thing. Surely, we could have done better.”
On where we can get workers from: Admittedly, it is hard to get staff – there are skills gaps. One option would be to partner with the private sector and get kids to be in a trade by getting more involved in their lives.
“We need to find our capabilities, partner with trade schools, and provide training.” On plans/advice to keep people in the state: We can keep people here by providing them with skills training, pathways, and careers. At present, inflation is rising but wages are not rising in proportion and people are chasing the dollar. We need to keep people right here with work. On the $17.9 billion infrastructure spend: With the $9.9 billion road spend, it seems the present government has no idea about the cost to benefit ratio. So much money has been spent and there is not enough left to do other things. We must ensure we can get as many South Australians as possible for the projects. Labor has no problem with SA companies partnering with interstate companies so long as there is technology transfer. We must also explore what parts of these projects can be broken up to be carried out locally, and allow smaller companies to bid for them. On procurement: An extra $425 million would be pumped into the state economy from government procurement changes, potentially increasing the chances for SA businesses to win lucrative work, create SA jobs and stimulate businesses.
Whoever is doing the projects may not have all the skills, and Koutsantonis is open-minded and open to suggestions, with regards to achieving 90% of labour hours on infrastructure projects. On paying subcontractors: Labor would consider introducing a penalty clause into contracts. The party is open to other suggestions. “We’re all ears. The hard part is project management – that takes time and energy.”
