With a building boom in new infrastructure on Australia’s east coast pitting states against each other,Premier Dominic Perrottet said it was “OK” if costs increased from estimates at the start of projects.
Premier Dominic Perrottet at Central Station on Tuesday. Steven Siewert
“We’re not talking significant increases. We are talking increases and that’s not unique to NSW – it’s happening right across the eastern seaboard,” he said. “We have a duty to make sure we get our projects built that are value for taxpayers,but ultimately,we’ve got to keep going.”
Mr Perrottet said the reality was that construction costs were much lower when the Coalition government embarked in 2011 on building new rail lines and other infrastructure projects in NSW,citing cheaper building materials and fewer labour constraints at the time.
Speaking during an inspection of to Central Station,Mr Perrottet said there was “no doubt” there had been an escalation in construction costs across the state,due partly to more expensive building materials and closed international borders making it harder to gain skilled workers.
On the flipside,he said the state now faced advantages from the lowest debt financing costs in decades.
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The Opposition has demanded the government reveal the latest estimated cost of the second stage of Sydney’s metro rail network,which internal documents have previously shown risks to as much as $16.8 billion,more than $4 billion above what had been initially budgeted.
The City and Southwest rail line,which is due to open in 2024,will extend from Chatswood,under Sydney Harbour to the CBD and onto Sydenham and Bankstown.
Labor transport spokeswoman Jo Haylen said the people of NSW had a right to know the true cost of the City and Southwest line as it was a significant transport project.
“Every cost blowout on a major project means less public money available for future projects. It means more privatisation and less money to maintain our transport network,” she said.
Escalators will link suburban train platforms to a new underground concourse at Central Station.Steven Siewert
Transport Minister David Elliott accused the Opposition of “very short memories”,referring to the former Labor government cancelling a six months after announcing it in 2009.
“For them to stand up and throw rocks at us about construction costs – about variations – just highlights the fact that they have absolutely no idea how to run a state,” he said.
Mr Elliott said he disliked seeing an increase in project costs but “that’s what happens in construction” and variations occurred.
“Not since the building of the Great Pyramids of Giza has a construction contract gone without a variation,” he said.
A government spokesman said the final budget for the City and Southwest line would be confirmed once all major contracts were awarded.
Transport projects such as the make up more than two-thirds of the NSW government’s $109 billion infrastructure budget over the four years to 2024-25.
Earlier this week Infrastructure Minister Rob Stokes said the dynamics around some projects that made sense five years ago had shifted,which
Mr Elliott has said he to proceeding with the second stage of the Parramatta light rail line from Camellia to Olympic Park,arguing he wants to focus on resolving problems with existing services.
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