Updated
Video: Tourism centre in financial strife
(7pm TV News SA)
A private operator insists it cannot keep running the South Australian Travel Centre under its current contract.
The SA Government now faces a choice between a costly bail-out or taking back operation of the centre it privatised less than a year ago.
Holidays of Australia has the job of promoting the state from Grenfell Street premises in Adelaide.
But the Government’s cost-saving foray into the private sector may turn out to be a difficult short break.
Six months into its three-year contract, the company told the Government it was under financial stress and could not meet its obligations.
Tourism Minister Gail Gago is offering little comment on the matter.
“We’re currently in negotiations and it would be inappropriate to say anything more until those negotiations are completed,” she told reporters.
It is expected those negotiations will be completed within days.
Deputy Premier John Rau also had little to say about the issue when pressed.
“You’re asking me questions about another minister’s portfolio. I think it would be appropriate to speak to that minister,” he said.
Infrastructure Minister Pat Conlon also sidestepped.
“We don’t talk about what’s been discussed in Cabinet. We don’t do that,” he said.
But another Government minister Russell Wortley confirmed Cabinet had discussed additional costs of about $30,000 per month.
“I understand there is a figure around that amount. (Q:) Has that been approved by Cabinet? Well, Cabinet will probably discuss it again today.”
Earlier in the month, the Cabinet approved a separate tourism-related bail-out of more than $400,000 to wipe out debts incurred by the Kangaroo Island Surf and Music Festival last year.
Opposition Leader Isobel Redmond accused the Government of mismanagement.
“This Government seems to find money to give [former premier] Mike Rann a golden handshake and yet mismanage all sorts of things at this level of government,” she said.
The Tourism Commission already has paid an extra $30,000 to Holidays of Australia to provide disability access at the Grenfell Street site.
Last year, it was revealed the centre was housed in a building owned by then-Tourism Commission chairman Bob Foord and that the business was operated by his son-in-law.
Mr Foord denied any role in the job appointment process but later resigned from the Commission, saying he did not want to hinder the outsourcing process.
The Auditor-General is expected to report on that process later in the year.
Topics:
states-and-territories,
travel-and-tourism,
government-and-politics,
tourism,
sa,
adelaide-5000
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