Page 4551 - Week 12 - Thursday, 15 October 2009
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Of course, in recent times the Stanhope Labor government finally agreed that, yes, actually we do need a dam and that maybe Canberrans do not want to be stuck with water restrictions forever; maybe they want to be able to use water sensibly in their gardens once again.
The 2005 water options report indicated that the Cotter Dam could be enlarged for $120 million. In 2007 the Chief Minister announced major water security projects and said then that the Cotter Dam enlargement would cost $145 million. It is interesting, isn’t it, that the Chief Minister announced that? Why did the Chief Minister announce it? Apparently when anything goes wrong with the agencies, it is not his fault; it is nothing to do with him; he does not have oversight; he does not have responsibility. But when there is action, when there is good news that they are going to build a dam, the Chief Minister announces it. On 30 May 2009, a week after estimates hearings, Actew Corporation’s managing director announced that the cost would be around $246 million. On 3 September 2009 Actew Corporation announced that the dam would cost $363 million. In summary, the cost has blown out to more than three times the initial estimate—a blow-out of $243 million in just the space of a few years.
We need to put that into context because we often hear a lot of big numbers in this place. We hear big numbers in the national and international debate. We hear talk of trillions these days. At the ACT level we hear of big blow-outs and sometimes we get a bit lost in the numbers. But $243 million represents four or five superschools, it represents three Gungahlin Drive extensions, it represents—well, it depends who is doing it—Majura Parkway. That is major infrastructure; that is a quarter of what the government has committed over 10 years to health infrastructure. We should not pretend that $243 million is not significant, that it is not massive, that it is not a concern.
In fact we have heard concerns from the government, but only after the fact. We saw the headlines that the Chief Minister was happy to tick off on. He was happy to get the message out there: “It is not my fault; it is Actew’s.”
Mr Smyth: “It wasn’t me.”
MR SESELJA: “It wasn’t me. It wasn’t the government.” He was there to announce that they were going to build a dam; he was happy to take credit for that. But, when things are not going so well, we see a different approach. We had this play out in the estimates committee. I will read from some of the estimates committee report:
3.49 The managing director of ACTEW Corporation, Mr Mark Sullivan, advised the Committee that whilst ACTEW’s $300 million capital works program was on track; its costs would nevertheless be higher than initially estimated.
3.50 Apparent inconsistencies in ACTEW evidence were discussed by the Committee. The Independent Competition and Regulatory Commission (ICRC) had approved that expenditure over a five year regulatory period 2008–2013. For 2008–09 the general capital works program totalled $91.2 million. …
3.51 The cost of enlarging the Cotter Dam is uncertain. It was estimated at $145 million in 2006–07 dollars. The ICRC expected this would rise by 30 per cent.
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