Tear Contract, says local MP

Friday June 14, 2024

Published by The Border Watch by Charlotte Varcoe

MEMBER for Mount Gambier Troy Bell is calling for the state government to "tear up" the contract and "start again" with regional road maintenance.

Currently, the road maintenance across the South East is contracted to Fulton Hogan with Mr Bell stating the road in the region had "never been in a worse condition".

"People may try to direct that towards a wet winter, well this has been one of the driest times on record," Mr Bell said in Parliament.

"You just have to ask any farmer in our local area, and they would confirm that.

"In the past, we have had wet winters, but I have never seen our roads deteriorate to the same level and nor have I received as many complaints in my office about that." He said an alternative option would be to reinstate a highways department in the South East and claimed one of the issues was state governments "all over Australia" had was they did not have something to base a road contract on, they would "have to take the price" the market gave them.

"That might sound quite logical in theory and you could argue it drives the best price but I would argue that without a baseline you end up paying inflated prices and the work is done to a profit margin because every company is designed to - and needs to - make a profit to benefit shareholders and make sure there is enough profit for continuing to work," Mr Bell said.

"Mount Gambier is approximately 440 kilometres away from Adelaide and is a journey many of my constituents make on a regular basis.

"The roads, whether inland via the Riddoch and Dukes highways or coastal along the Southern Ports or Princes Highway, present a common theme, deterioration." He mentioned the state government's previous solution of having a Department for Infrastructure and Transport depots located in Mount Gambier/Berrin and Naracoorte with essential maintenance work being undertaken by local contractors for more than 30 years -resulting in strong relationships with managers and contractors and local knowledge.

"However, in 2019, the then Liberal government made a decision to privatise the maintenance of the entirety of the state's road network," Mr Bell said.

"This was touted as a cost-saving measure, with the state's network being divided into four zones, with seven-year contracts on offer.

"The regional south network, which includes Mount Gambier, was awarded to Fulton Hogan." Mr Bell said recent revelations indicated a "significant mismatch" between the contracted amounts and the estimated cost of necessary repairs.

"This raises concerns about the effectiveness and current approach, as residents increasingly face damages to their vehicles due to subpar maintenance efforts," he said.

"These residents consistently contact my office in frustration, anger and distress because no-one is being held responsible for the damage costs." Member for MacKillop Nick McBride supported Mr Bell's call, and said he also received a number of concerns.

"When the roads are repaired they are not lasting," Mr McBride said.

"We are hearing a lot of feedback from constituents that the roads are not being repaired frequently enough and the repairs are not lasting." He said he believed it was a good opportunity for the government to re-evaluate the current contract and possibly reinstate a department in the South East.

Minister for Infrastructure and Transport Tom Koutsantonis previously announced a review into the management of the road maintenance contracts.

"In addition to investing in road building and repair efforts, this government has instituted a thorough audit of all contracts entered into by the previous Liberal administration for the maintenance and repair of South Australia's road network," Mr Koutsantonis said.

"If any contractor is failing to adhere to their terms, we will take action." Fulton Hogan were contacted for comment.