Page 3149 - Week 10 - Wednesday, 24 September 2014
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It is a shame that the backbone of Canberra’s light rail network is in fact a political agreement rather than sound transport research. When I asked the minister in February last year what the annual operating costs of light rail would be he said:
The operational arrangements and parameters for Capital Metro are being defined; therefore it would be premature, at this stage of the project, to provide an operational cost estimate.
So the government made the commitment to proceed with light rail without understanding what the ongoing operational costs of light rail would be. It was blind ideology trumping sound government policy, and it will cost taxpayers dearly for years and years to come. For years we have heard from Mr Rattenbury and others that we should have empirical evidence to back up the decisions we make in this place; we should have sound, evidence-based policy. Well, here we have a political agreement based policy.
These costs are important to understand. The Gold Coast light rail, which opened in July, is rumoured to cost the Queensland government an estimated $35 million in operational expenses—$35 million—a year. As a capital outlay, this money could fund many projects to benefit all Canberrans. However, this is simply operating costs, not even capital. $35 million could also be spent more wisely on current expenditure. We heard the debate yesterday about our failing health system. Maybe this money could be better invested in more nurses or doctors. Perhaps a fraction of this money could be spent to increase peak-hour buses to and from the city, something which benefits all Canberrans. The money could also be spent to fix gaps in our education system or to provide a higher standard of urban services.
Of course, not all of this money has to be spent. It can be provided back to the taxpayer through reduced rates, reduced land tax or indeed a reduction in motor vehicle registrations. Other fees and charges, such as the lease variation charge, could also be substantially reduced or pretty much removed.
It is important that the government is honest with all Canberra taxpayers. I have frequently asked the minister to be open about the operational costs of light rail, but he has continued to stonewall us. In fact, last week I asked the minister what the operational costs would be again. He refused to give me an answer. When I asked a similar question earlier this year, the minister replied:
This is associated with the development of the capital metro project, including assessment of the ongoing operational cost of the light rail project. Those assessments are subject to further consideration by the government as part of cabinet consideration of the light rail project.
Now that the government have subjected the full business case to cabinet and provided their tick of approval and the consultants have finished doing work, they should come clean on the operating costs of this new network. What will it cost the territory to run these trams when they open in 2020, 2021 or 2031 and into the future? What annual liability is this government imposing on the territory which will burden taxpayers of the future? What programs will have to be reduced or what taxes will have to be raised so that light rail can operate into the future?
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