Page 2303 - Week 08 - Tuesday, 12 August 2014
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Minister, why is the government proceeding with capital metro when its cost is subject to a high degree of uncertainty and is a source of risk for the fiscal position of the territory?
MR CORBELL: I thank Mr Coe for the question. The government was very disappointed when the Centre for International Economics made no inquiries of the government before making its conclusions in its report. There was no contact with the Capital Metro Agency. There was no request for information. Instead, the centre relied on an old record, a report that is now over two years old—indeed, probably older—and is completely out of date.
The bottom line is that there will be a high degree of certainty with the costs of this project because the government will proceed through a competitive market process. Contingent on the government’s agreement to the foreign business case, the government will proceed to a competitive market process that would deliver a contract figure, and that contract figure will be the cost of the project. The private sector consortium, should the government choose to engage in a public-private partnership, will deliver the contract for that price. If it costs them more than that price, then that is their concern, not the government’s risk. So there will be a very high degree of certainty around the cost of this project at the conclusion of that market process.
MADAM SPEAKER: Supplementary question, Mr Coe.
MR COE: Minister, did the Centre for International Economics do a review of publicly available information and draw their conclusions accordingly?
MR CORBELL: You would have to ask the Centre for International Economics that question.
MADAM SPEAKER: A supplementary question, Mr Wall.
MR WALL: Minister, considering the government has admitted that less than one per cent of Canberrans will use capital metro to get to work or school—
MADAM SPEAKER: Preamble, Mr Wall.
MR WALL: will you now admit that capital metro is not viable?
MR CORBELL: The government has never said that. That is a figure used by the opposition, not by the government. The point to be made about this project is: do those opposite seriously believe that the only beneficiaries of better public transport are the people who use public transport? Even the simplest analysis would demonstrate that if you reduce the number of people who are using their cars and increase the number of people who are using public transport, the winners are not just those who use public transport; the winners are those who are using the road network.
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