The state government remains in negotiations with private transport operator Keolis Downer about undoing the 2019 decision to privatise Adelaide’s passenger rail services.

Keolis Downer is in its second year of an eight-year, $2.14 billion contract to run Adelaide’s trains. The consortium has responsibility for employment of drivers, operations and some maintenance work.

Department of Infrastructure and Transport CEO Jon Whelan refused to comment on Monday as to whether Keolis Downer could still have a role in the state’s public transport network once negotiations to undo the privatisation are finalised.

“Those discussions are still occurring, so I couldn’t comment on whether they would or wouldn’t have any role going forward,” Whelan told parliament’s Budget and Finance Committee.

“Our priority is to make sure that we have the train drivers and tram drivers and the operations back in government hands this term.”

Whelan also reiterated to the committee that the state government “will make no payments for ceasing this contract”.

But asked earlier by Opposition MLC Michelle Lensink whether he could advise “when the Keolis Downer contract will be terminated”, Whelan responded: “I don’t like to use the word ‘terminated’.”

“The commitment is to bring back trams and trains into government hands and the commitment is that it will be done in this term of government,” Whelan said.

“We’re working collaboratively with both Keolis and Torrens Connect on a transition to bring those workers back into government hands.

”We don’t believe there will be a need for any termination of those contracts.”

Later in the committee sitting, Opposition MLC Stephen Wade queried: “With the way we are talking about this, I gather we are not talking about terminating the contract; we are talking about varying it”, to which Whelan replied: “Correct.”

It comes despite Transport Minister Tom Koutsantonis confirming to parliament on June 16 that he had received advice about the cost of terminating the Keolis Downer contract.

The Minister has also repeatedly warned public servants about the prior insertion of any “unusual break clauses” into the $2.14 billion agreement that could hamper the state government’s capacity to exit the contract.

Koutsantonis told parliament on July 7: “If there are any unusual break clauses put in there by public officers that are not natural or normal to other public sector contracts, those public officers, whoever they are and wherever they sit… I can assure the house I will be making those people famous.”

Whelan, asked on Monday whether Keolis Downer was willing to accept a zero cost break, said: “We have made it very clear with both operators that the government has options in its powers.”

“They are aware of that… and we will work with them to the period that we do take it back,” Whelan said.

“There will be some transition costs that we will need to work with them through, while the period that they still have it in their operations.”

Whelan said the state government still needs accreditation from the Office of the National Rail Safety Regulator to operate railway lines again.

He also said the state government doesn’t currently have the “in-house” skillset to take over some of the maintenance work that had already been outsourced to other companies, such as overhead wiring and rolling stock maintenance.

“So we need to work on a transition on what that may look like and present that to government,” Whelan said.

The Transport Department paid $421.5m for outsourced public transport service contracts last financial year, according to the Auditor General’s annual report.

Asked what proportion of the Keolis Downer contract is already committed to come back into government hands, Whelan said: “Nothing has been committed at this point of time.”

“We are still continuing negotiation on bringing this back into government hands, nothing has already been sorted on what proportion or anything would be,” he said.

Koutsantonis told reporters on Wednesday that he was “not going to set a deadline” on when the rail privatisation would be reversed, other than within this term.

Asked if it was possible Keolis Downer might retain certain parts of its contract, Koutsantonis said: “No.”

“Maintenance was always outsourced, so I’m not really fussed about the maintenance work,” he said.

“What I’m fussed about is the operational work – people deciding the timetables, deciding the investments.

“Public transport’s an essential service, it’s got to be controlled by the public – that’s our very firm view and we’ll be doing that.”

A previous version of this story incorrectly listed Keolis Downer as the sole operator of Adelaide’s trams.