Sensational-Adelaide.com

Labor to fund $500 million citywide tram network across Adelaide

LABOR is to promise half a billion dollars for a citywide Adelaide tram network it says it will create 2000 jobs, as Opposition Leader Bill Shorten moves to outdo Prime Minister Malcolm Turnbull on public transport.

Mr Shorten is set to announce the pledge today, putting pressure on Mr Turnbull to match or better the offer to invest in the State Government’s AdeLINK project.

Infrastructure Australia has listed the AdeLINK network as a priority project, and the State Government has been working on a $4 million business case to determine the overall cost of trams to go from the city to The Parade, Henley Square, Mitcham, Port Adelaide, and around the city.

The final cost of the project is estimated to be around $3 billion.



The Labor investment to be announced today will fund the initial stages. The State Government will also pitch in, and it is hoped the project will be able to attract private sector investment.

Mr Shorten told The Advertiser that the investment was “about creating jobs and investing in the skills of South Australians”.

“This investment will create 2000 jobs in SA and give the local economy a much-needed boost,” he said.

“Just as we did when we forced the Liberals to backflip and build the submarines in Adelaide, Labor will always fight for decent jobs for South Australians.”

Premier Jay Weatherill said AdeLINK was a “key element” of the State Government’s larger transport plans.

“The AdeLINK tram network is a key element in the transformation of our public transport system which we know will deliver enormous economic benefits, continue to improve Adelaide’s vibrancy and will also create jobs,” he said.

“This is an exciting announcement which addresses two of our federal election priorities, to grow our public transport network and to support our sovereign steel industry.”

The pledge will up the election ante on public transport. Prime Minister Malcolm Turnbull was in Adelaide last week to announce the Coalition would fund the extension of the Tonsley rail line to deliver a train from the city to Flinders Medical Centre.

Mr Turnbull’s support for public transport has been a shift from former Prime Minister Tony Abbott, who preferred investment in roads.

Mr Turnbull said that rail extension and other developments could create almost 2000 jobs and drive more than $800 million in investment.

Labor denounced the announcement as the mere rerouting of other money.

Labor’s plan, if elected on July 2, is to spend the $500 million over four years, while maximising the use of Australian steel and electrifying the Gawler rail line.

The Advertiser revealed in April that federal infrastructure and transport spokesman Anthony Albanese was keen to support the project, but Mr Shorten will announce the specific investment today.

It could become a bipartisan promise. A Government source told The Advertiser recently that the network was also on its radar as a “nationally significant” project.

Mr Turnbull has unveiled a plan to leverage increased land values to build more infrastructure, such as light rail.

When he was in Adelaide earlier this year, he discussed light rail with Premier Jay Weatherill.

“I’ve been saying to the premiers, if you want to build light rail, fair enough, (it) can add a lot of value to your city,” he said.

“But look at it on the basis of how it will build amenity, improve livability, improve housing affordability, improve housing supply.”

An alliance of Adelaide’s leaders is pushing for a 1km tram extension from King William St along North Tce to East Tce to be the first project.

The group, which includes Lord Mayor Martin Haese and the Rundle Mall Management Authority’s chairman Eric Granger, argue it would boost economic growth and jobs, and would bring more people into the city centre.

“I think a tram is exactly what the doctor ordered,” Mr Haese said.

The business plan being prepared by the State Government will identify the precise routes and stops, as well as planning, design, and value capture benefits.

That business case will be assessed by Infrastructure Australia, and the funding will need IA’s approval to go ahead.

It is planned that the business case will be released before the election.

Waewick wrote:prey short on detail- looks like $500M to throw at something the state doesn't have funding for.

hopefully more detail soon - if its a loop/tram to Norwood I'd be keen, if its unfunded pie perhaps not.

I wonder what the State prefers, this or the flinders train extension?

phenom wrote:The tram development is probably as far as it can go without funding. Generally the plan for these things is not supposed to be worked out in detail in advance, that's sorted out when final funding constraints are known and a builder has been selected. You can see this is how it works by looking at Torrens to Torrens etc.

The fact this is with InfrastructureAustralia (albeit at options assessment level) is a good sign and the SA govt is working on a $4m business case. How much more should they spend in absence of having assured funds? Spend $50m on a full work up to sit on a dusty shelf and have the Advertiser running headlines claiming people are dying in hospitals because the government spent money on a plan for no reason?

rubberman wrote:...They've been banging on about this for years, and all we've got is a few texta lines on a map...

mshagg wrote:I love the idea of an extensive tram network, but have concerns when the focus is entirely on jobs during the construction phase.

Someone has to pay to run the thing once its built. That someone isn't the Commonwealth. As it stands our public transport is heavily subsidized by expiations paid by motorists - which is fine (pardon the pun) - but how much more blood can they squeeze from that stone?

mshagg wrote:I love the idea of an extensive tram network, but have concerns when the focus is entirely on jobs during the construction phase.

Someone has to pay to run the thing once its built. That someone isn't the Commonwealth. As it stands our public transport is heavily subsidized by expiations paid by motorists - which is fine (pardon the pun) - but how much more blood can they squeeze from that stone?

fishinajar wrote:

phenom wrote:The tram development is probably as far as it can go without funding. Generally the plan for these things is not supposed to be worked out in detail in advance, that's sorted out when final funding constraints are known and a builder has been selected. You can see this is how it works by looking at Torrens to Torrens etc.

The fact this is with InfrastructureAustralia (albeit at options assessment level) is a good sign and the SA govt is working on a $4m business case. How much more should they spend in absence of having assured funds? Spend $50m on a full work up to sit on a dusty shelf and have the Advertiser running headlines claiming people are dying in hospitals because the government spent money on a plan for no reason?

What phenom said. Full detailed business case and plans are expensive and have a short use by date. It would be irresponsible to do it until you know you're going to have the money.

rubberman wrote:...They've been banging on about this for years, and all we've got is a few texta lines on a map...

As for texta lines on a map, like the current government or not, don't pretend that zero research and analysis have occurred, or that other details such have stop spacing have not been considered at all. They have been.

zippySA wrote:I was told the other day that Melbourne's trams only generate one third of their own revenue from ticket sales - the other two thirds comes from the government as part of a performance payment to meet certain KPI's. It's a good point - great to roll these out, but ensure they factor in the ongoing operational costs - these end up being much larger than the up-front build over the life of the asset.

GoodSmackUp wrote: That's why the preliminary design phase usually has a cost-benefit analysis

mshagg wrote:

GoodSmackUp wrote: That's why the preliminary design phase usually has a cost-benefit analysis

Oh for sure, im not suggesting either state or federal labor are reckless or anything along those lines, just that it's clearly a bit of an election puff.

It seems it's an attempt by shorten to out-tram Turnbull, made somewhat easier by a sympathetic state government. That said, this isn't Melbourne where there's swathes of inner city green votes to capture. I'm not even sure if announcing trams plays well in the affected electorates given Adelaide's hostility towards anything which might occupy a square meter of space that someone could otherwise jam a single occupant vehicle into. This may well be why it's being sold as "jobs" rather than "infrastructure". I think Nick X's party is running in these divisions so might be an attempt to divert votes away from him as well.