SA transport projects face axe after defeat of car park tax

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ABC News --> SA transport projects face axe after defeat of car park tax

Key public transport projects in South Australia face an uncertain future after the State Government's controversial car park tax was voted down in Parliament, leaving a $120 million hole in the budget.

An Opposition amendment to remove the Transport Development Levy from the budget was supported by two Family First MPs and independent John Darley.

The levy would have put a $750 charge on car parking spaces in Adelaide's CBD and was expected to raise about $30 million a year.

Government MP Tung Ngo told Parliament the Government had been left with no option but to cancel major upgrades to public transport infrastructure.

"Future transport projects such as park and ride stations, new buses and trams will now be on hold," Mr Ngo said.

"Any major public transport will be re-profiled."

Treasurer Tom Koutsontonis said the proposed Park 'n' Ride facility at the Paradise Interchange would be cancelled and another seven Park 'n' Ride facilities being scoped could face the same fate.

"Everything that is linked to this levy is now under threat. And the reason it's now under threat is because Steven Marshall won't allow the Government to govern," Mr Koutsontonis said.

"All of the people who get frustrated by people parking in the Paradise community church have got Vincent Tarzia and Steven Marshall to thank for that."

However the Government's big-ticket public transport promise - the $160 million O-Bahn tunnel - appears safe.

"I don't think it's the type of project we would cancel because the public transport outcomes out of it are exceptionally good for people in the north eastern suburbs," Mr Koutsontonis said.

Shadow Treasurer Rob Lucas told Parliament the Opposition could not support a new tax on South Australians.

"The notion that in some way we can assist struggling South Australian businesses in a struggling South Australian economy by hammering them again with an additional tax is beyond comprehension."

Independent MP John Darley also opposed the tax.

"We want a good transport infrastructure network," Mr Darley said.

"But at the end of the day we made a commitment prior to the election that we wouldn't support a car park tax and we really have no option but to honour that commitment."