Page 4197 - Week 13 - Thursday, 27 November 2014
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What is very clear is that anything over one delivers a positive return and anything over two is obviously a very strong case. But in terms of a positive return to the economy, anything over one meets that benchmark.
MADAM SPEAKER: Supplementary question, Mr Wall.
MR WALL: Minister, will the annual payments to the operator of that project exceed $1 billion over the lifetime of the project?
MR CORBELL: As the government has previously indicated, we are not getting into the process of speculating on the availability payments regime because we will not be compromising value for money through the competitive tendering process. But if you look at the business case and if you look at the overall benefits over the full 30-year period of the business case analysis, you will see that the total benefits are over $3 billion to the ACT economy. If we are going to start speculating on those sorts of figures—which I do not want to do and which I will not be doing—I point Mr Wall and his colleagues to the fact that if you look at the full life of the project as analysed in the capital metro business case, you will see that the total benefits over the life of the project, for the purposes of the economic analysis, are over $3 billion worth of economic opportunity for our city and our community.
MADAM SPEAKER: A supplementary question, Mr Coe.
MR COE: Minister, why was there such a large residual component in the BCR, which contributed to the BCR of 1.2?
MR CORBELL: I am not sure what Mr Coe is referring to there. I would be happy for him to elaborate, but the important thing is to reflect on the fact that this BCR has been put together based on industry-accepted standards, based on the standards that Infrastructure Australia would use for its own assessment of these projects, and put together by a world-leading global team, through EY, with significant experience in properly developing a robust and sound business case that is consistent with industry expectations and standards. So that is what we have in front of us, and we have a project that delivers over a billion dollars worth of benefit to our economy as a result.
MADAM SPEAKER: Supplementary question, Mr Coe.
MR COE: Minister, why was a discount rate of seven per cent used when that is usually only applicable for a traditionally procured infrastructure project?
MR CORBELL: Again I refer Mr Coe to the questions and answers that have been provided to him through the annual reports process. What is very clear is that the analysis in relation to this project has been delivered in accordance with accepted industry standards and parameters, and that includes the discount rate.
Transport—light rail
MRS JONES: My question is to the Minister for Capital Metro. Minister, yesterday you said in this place:
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