JOHN AUSTEN. Trouble in infrastructure paradise NSW revisited.
May 8, 2018
The mixed reception for the infrastructure works of NSW Premier the Hon. Gladys Berejiklian MP continues. It is mostly bad news punctuated by the odd piece of what the NSW Government considers good news.
Previous articles commented on emerging transport troubles in NSW a state considered by the infrastructure club to be paradise. It is time for an update. https://publish.pearlsandirritations.com/john-austen-nsw-needs-an-inquiry-into-sydney-transport/
Before looking at the chickens coming home to roost, the NSW Government claims there is good news with the North West Metro construction coming in $500m under budget around 6% of the budget of $8.5billion.
The Premier and Transport Minister made the claim during a media performance at one of the Metro construction sites. Both were suitably attired with the familiar politicians white helmet and a new de rigeur - safety glasses. https://www.smh.com.au/national/nsw/sydney-s-metro-northwest-rail-line-to-be-completed-500m-under-budget-20180422-p4zazf.html
The Premier, with apparent enthusiasm, spouted that once people see what a driverless wonder Metro is everyone will want one. Perhaps, but surely they would prefer to sit while travelling. Metro has far fewer seats than Sydney trains.
Among the likely reasons for the Premiers presented joy is the Metro budget which is the only thing that can be presented as a bright spot in an increasingly bleak story emerging about her Governments unjustified spend-a-thon on infrastructure.
In March, the Government finally backed down a little on its policy of knocking down and rebuilding two modern stadiums, at a cost of $2.5bn. Now the intention is to knock down only the Sydney football stadium and refurbish the Olympic Stadium. While presented as a saving of $500m, the reality is it a waste of up to $2b.
The most credible and least fatuous - case for knocking down the Sydney football stadium is to create the Twickenham of the south. The Governments pro-offered safety reasons lost some force after a record crowd of 41,142 people 92% of rated capacity were there to watch a league game on Anzac Day. https://www.smh.com.au/politics/nsw/berejiklian-waters-down-her-2-5-billion-sydney-stadiums-plan-20180329-p4z6zx.html
Sydney City light rail the Premiers signature project when transport Minister is in a world of trouble. Cost could be nearly double its original budget. The construction company is suing the Government for more than $1.0bn claiming it was misled about critical construction matters. Reports say the line will be finished at least a year late, a year later than the State election where it was to showcase infrastructure credentials. Meanwhile, some businesses on its route through the CBD whose revenues have been damaged by construction disruptions.https://www.smh.com.au/national/nsw/state-raises-rents-for-restaurants-despite-revenue-hit-from-light-rail-20180430-p4zce8.html
Westconnex continues to attract negative reviews. The Government presses ahead, even granting planning approval before a design is finalised. This might be useful to give the appearance of action given claims of yet another budget blow-out this time $700m and delays of a year. The Government argues it is on time and budget and, contrary to almost universal experience, the road will bust congestion. https://www.smh.com.au/politics/nsw/westconnex-contractor-claiming-m5-700-million-over-budget-and-one-year-late-20180503-p4zd5u.html
Congestion-busting is taking on a new importance since the more perceptive in the media are now querying whether the Governments own policies,like the restriction on the Port of Newcastle to deal with containers is adding to traffic jams. https://www.smh.com.au/business/the-economy/restrictions-on-privatised-ports-adding-to-sydney-s-gridlock-deloitte-report-20180411-p4z91q.html
According to reports, the Transport Minister is becoming nervous about the States ability to finance another congestion buster West Metro claiming the Western Sydney deal and stadium spending threaten to bankrupt the State. This must worry the Government as all and sundry now see that the highest priority for rail capacity expansion has long been between Parramatta and the CBD, when the re-re-announced West Metro is to go and not where the current Metro is being built. https://www.theaustralian.com.au/national-affairs/state-politics/nsw-gets-20bn-for-airport-rail-lines-under-deal-with-pm/news-story/30e13991079b4380e379144c6fdeaa69
Next in the transport mess was confirmation that the Government was told that the new rail timetable was unduly risky, but nonetheless pressed ahead with predictable results of days of major delays and more recently a spike in skipped stops. This confirms the Government made a big mistake in its re-organisation of transport in NSW; where the Department, under the direction and control of the Minister has plenty of power but shies from responsibility. https://www.smh.com.au/national/nsw/secret-report-warned-top-bureaucrats-to-delay-new-rail-timetable-20180417-p4za20.html
To add to the mess a date has been set for the shut-down of the Epping Chatswood line, inaccurately reported as to be upgraded instead of altered to Metro. Duration is expected to be at least 7 months and not to open before the election. http://www.abc.net.au/news/2018-04-09/epping-to-chatswood-train-line-closure-impacts/9632816
All this is grist to the mill of the press who are starting at last to take a more careful look at the Government, presumably in the expectation that more problems are to follow.
The State Opposition is claiming the above matters prove the Government cant deliver infrastructure. This misses the point.
Sydney may well be better off without this Governments infrastructure projects even if they are free. It may take enormous sums to bail the city out of the trouble the Governments infrastructure mania is causing.
Perhaps he banking royal commission is proving to be more valuable than many expected. This provides a lesson for the Commonwealth in relation to Sydney transport. In both banking and infrastructure governments are proving unable or unwilling to properly regulate and supervise powerful and wealthy vested interests.
For many months we have called for a public inquiry to sort out the mess in NSW transport.That need is becoming more and more obvious.
John Austen is a happily retired former official living in the Macarthur area of Western Sydney. He was Director of Economic Policy for Infrastructure Australia from its inception in 2008 until his retirement in 2014.
John Austen
John Austen is a happily retired former senior official of Infrastructure Australia living in Western Sydney. Details are at thejadebeagle.com.