East West Link CompensationDownload as PDF
June 16, 2015
Prior to the last state election the Labor Party claimed that the East West Link contract was not worth the paper it was written on.
The East West Link project had been recommended as a key project for Victoria by Sir Rod Eddington appointed by the then Bracks Labor Government in 2006.
Now we have the extraordinary position of over $800 million (est.) (comprising of $400 million in compensation and $400 million in a payout of monies invested) which will be lost to the Victorian taxpayer.
It stands as an act of political lunacy which will also serve to kneecap Victoria’s economic growth and reputation as one of the world’s leading centres of business excellence.
The Shadow Treasurer Michael O’Brien recently stated:-
“Whichever way you cut it, Labor’s decision to tear up the East West Link contract has just been a shocking waste of public money.
Over $400 million in compensation, at least the same again in sunk costs that will never be recovered and goodness knows how much on Labor’s new $3.1 billion credit card.
This has been a financial scandal. Labor promised that the contract wasn’t worth the paper it was written on; they were wrong. They promised that there would not be a dollar of compensation paid; they were wrong.
Labor has now wasted hundreds of millions of dollars of Victorians’ money all to not build a road and a road that Victorians need.
We’re very concerned that Labor has failed, absolutely failed to be upfront with Victorians about the true cost of ripping up the East West Link contract.
That’s why I’ll be writing to the Auditor-General, Mr John Doyle, asking him to investigate the matter, get to the bottom of exactly what the cost of Labor ripping up the East West Link will cost Victorian taxpayers.”
What could have been bought with some of the estimated monies paid out:-
• 45 primary schools, OR
• 21 secondary schools in growth areas,
• 1600 new school relocatables
• 5800+ primary welfare officers at schools
• 1 new hospital
• 25 new suburban trains
• 40 new 24 hour police stations
As the Member for Sandringham I fully support any investigation by the Victorian Auditor- General.