Labor to dump East-West Link if elected, even if contracts are signed

[ozbob]

Sydney Morning Herald --> Federal Auditor called on to look at East West

Federal Auditor called on to look at East West
Richard Willingham, State Political Correspondent

The federal auditor-general has been called on to investigate the Abbott government's funding of the controversial East West Link.

Opposition Infrastructure spokesman Anthony Albanese has written to the National Audit Office asking it look at why Prime Minister Tony Abbott's government allocated $3 billion to the project "without a scrap of evidence" as to whether the project was value for money.

The new Victorian Labor government says it will not build the road and released the business case to the public on Monday, something the Napthine government refused to do.

The documents showed revised versions of the business case with attempts made to improve the cost-benefit of the project by including other projects.

It was also revealed that the Victorian Coalition decided not to submit the business case to Infrastructure Australia for fear the figures "may be used as a justification for not supporting the project".   

"The cost-benefit analysis that was done by the Victorian Government for this toll road project showed a benefit of 0.45. What that means is 45c of benefit for every dollar that's invested. That is a shocker of a project," Mr Albanese said.

"The Napthine Government chose not to tell Infrastructure Australia about the facts. And Tony Abbott chose not to ask. He funded the project anyway. No checks. No rigour."

In the letter to the office, Mr Albanese asks the Auditor-General to look at "the actions of the Commonwealth Government in making an advance payment to the Victorian Government of $1 billion for East West Link Stage 2 on or about June 30, 2014 and at a time when the Commonwealth was claiming a "Budget emergency"."

Mr Abbott has pledged $3 billion to the project –$1.5 billion for each section –with half already paid to Victoria.

Mr Albanese said the Prime Minister's pledge that all major projects required a published cost-benefit analysis was meaningless.

Mr Albanese's call came as the NSW Auditor-General savaged the $14 billion WestConnex project in Sydney saying "it was not able to form a view on whether the project is a worthwhile and prudent investment ... for the NSW government."

Like the East West Link, the business case for WestConnex has not been released. The NSW Auditor-General also criticised the lack of independent scrutiny of the development of the project.

That project is also receiving federal funds.

Parliamentary Secretary for Infrastructure Jamie Briggs on Thursday called on Labor to reveal its alternate plans to reduce congestion and create jobs for Victorians.

"If they don't support East West Link, then what is their alternate plan for Victoria to improve east-west travel for motorists and freight operators in Melbourne?," Mr Briggs said.

"What is their alternate shovel ready infrastructure project that could create up to 7,000 construction jobs now, not in some other decade?"

[ozbob]

Melbourne Age --> The East West Link is dead, accept it

[pandmaster]

http://www.abc.net.au/news/2015-04-30/tolled-tunnel-to-link-westgate-fwy-and-citylink-considered/6433522

What madness? The ALP came to power on a pro-public transport platform. There is no shortage of road space on the Westgate Freeway. The Western suburbs of Melbourne are barely served by trams and only have the Werribee line with two short spurs in the way of rail. There is so much scope to improve PT in the area. Even if this is built at no fiscal cost to the state there will be economic and social costs. The western suburbs deserve better from the government. With better transport it could be very liveable: there is a plethora of land relatively close to the city (compared to the seemingly endless sprawl of the east).

I think "serving the port" is just a thinly-veiled excuse to get a road through a pro-PT climate. Unlike cars: there is no way trucks can come off roads. 

[#Metro]

Peak hour toll on the bridge. Build gantry and buy cameras. Could subcontract the task to another toll tunnel operator in Australia who already has the systems in place to manage it.

[Gazza]

Could subcontract the task to another toll tunnel operator in Australia who already has the systems in place to manage it.

You mean like....themselves?

[#Metro]

 I was thinking of utilising the 'spare capacity' at AirportLink and Clem7 HQ

[ozbob]

Twitter

Vic Government News ‏@VicGovtNews 3h

East West Link Deal Finalised - http://www.premier.vic.gov.au/east-west-link-deal-finalised ... #springst

[ozbob]

^

http://www.premier.vic.gov.au/east-west-link-deal-finalised

East West Link Deal Finalised

Monday 15 June 2015

The Andrews Labor Government has reached binding final agreements with the East West Connect consortium (EWC), formalising the in principle deal that was agreed in April.

Under the deal, the State acquires the EWC business and associated project assets for $1. It confirms the final cost to the State includes $339 million in costs incurred by EWC through the bid process and design pre-construction and $81 million that was spent to establish the credit facility for the project.

The State has also negotiated a $3.1 billion bond agreement, available for the Melbourne Metro Rail Project, with members of the EWC banking group.

The bond agreement, along with the swap arrangement, will be managed by Treasury Corporation Victoria.

The Metro bond agreement provides the State with financing capability for Melbourne Metro, at a far lower cost to the Victorian taxpayer than the project banking facility provided to EWC.

Combined with the $1.5 billion announced in the 2015-16 Victorian Budget, the Government has now secured more than $4.5 billion for the transformative rail project, almost half the total expected cost.

The State has appointed Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation to act as joint lead managers for the issuance program.

The Government thanks all parties for their cooperation.

Quotes attributable to Treasurer, Tim Pallas

"Before the election, we promised that a Labor Government would not proceed with the Liberals' East West Link and would not be liable for compensation. These promises have been kept."

"While not a cause for celebration, it allows Victorians to move forward and focus on projects that stack up."

"The Andrews Labor Government will now get on with building projects that our State needs and that Victorians voted for."

[ozbob]

RMIT --> How community action re-politicised transport planning in Victoria

[ozbob]

Melbourne Age --> East West Link decision 'flawed': Dumping contract cost taxpayers $1.1 billion

[ozbob]

7 News --> Liberals and Labor slammed over Vic road

[ozbob]

Twitter

Harriet Mantell ‏@Harrietmantell 26m

#EWLink shameful example of ideology and politics over good governance. VIC Libs still pursuing it #sameoldsameold



==============

Twitter

Harriet Mantell ‏@Harrietmantell 21m

Yep, we knew it along....it was simply a DUD #EWLink

[verbatim9]

Not satying I endorse either project. Just as bad as each other. The new western freeway proposal will feed more traffic onto city cbd streets (especially Docklands). At least east west link would of by passed and diverted traffic away from Northern inner city streets. An airport train link to the suburbs and airport would be better money well spent. As well as further electrification works to as far as Western Geelong?

[ozbob]

Melbourne Age --> East West Link: It's a mess, Michael O'Brien, much of it is your fault

[ozbob]

Melbourne Age --> Tony Abbott slammed for political timing of East West Link road cash

Tony Abbott rushed to promise $3 billion of East West Link cash despite "clear advice" from the public service that the project hadn't been justified and wasn't ready.

In a damning assessment, federal Auditor-General Grant Hehir​ has revealed Mr Abbott personally approved the payments for both sections of the road, handing over half the money, $1.5 billion, on the final day of the 2013-14 financial year to maximise the budget deficit in Labor's final year.

In doing so, the report found Mr Abbott ignored advice from the Department of Infrastructure and Regional Development that the money was being paid well in advance of project needs. The audit report, released on Monday, suggested the decision was taken for political purposes, in the absence of any rigorous assessment ...

Appalling all this EW Link stuff.

I am glad I stood up against it.

[ozbob]

Twitter

Terri Butler MP ‏@terrimbutler 5h

The East West Link scandal. #auspol