Brumby’s $10 Billion Blowout On State Projects

May-03-2010

John Brumby has overseen budget cost blowouts of more than $10 billion on state government projects in Victoria in his eleven years as Treasurer and now Premier, Shadow Treasurer Kim Wells said today.
Figures released today by the Victorian Liberal Nationals Coalition show that project management under John Brumby's leadership has been a complete shambles, and the difference between the originally budgeted cost of projects and the subsequent actual cost to Victorian taxpayers now stands at $10.7 billion and is still rising.
In addition, state budget figures reveal that total state public sector net debt under John Brumby will have increased ten-fold from an actual $3.1 billion in 2002 to an estimated $31.3 billion by 2013.
"Victorians will find it hard to accept the fact that a large part of this state debt spiral is due to the massive project cost blowouts and the poor project management skills of John Brumby and Labor.
"John Brumby has a lot of explaining to do to Victorians as to why his government simply cannot manage taxpayers' funds when it comes to infrastructure projects, and why he has wasted billions and billions of dollars.
"The myki public transport ticketing system fiasco is a prime example of the shambles major projects are in under John Brumby. Not only is the project more than three years late, the original $494 million cost of the project has now blown out by almost three times to $1.416 billion and is still climbing.
"The Smart Meters project was supposed to cost $800 million but has now blown out by nearly three times that much to at least $2.25 billion, which will have to eventually be paid for by electricity consumers all over Victoria through their electricity bills.
"The Brumby Government's Regional Fast Rail project was originally projected to cost $80 million yet this blew out by an unbelievable $839 million - more than 1000 per cent above budget.
"The EastLink Tollway was promised by Labor as a publicly funded freeway with a then 'iron-clad' promise that it would be toll-free and that it had been fully costed and budgeted for. Due to Labor's broken election promise and its massive back-flip on tolls, the final cost of the EastLink project blew out by more than $2 billion.
"The Coalition's analysis shows John Brumby and the State Labor Government have established a record of incompetent management of the state's finances and the delivery of services.
"With proper oversight and rigorous project management measures, much of this $10 billion wasted on cost blowouts by the Brumby Government could have been spent on other vital infrastructure projects such as road projects to free up Melbourne's increasingly congested traffic, hospitals which are waiting to be built, redevelopment of school buildings which are currently crumbling and the many regional and country infrastructure projects which are on hold awaiting funding.
"John Brumby has wasted an entire year's infrastructure investment through these massive cost blowouts.
"John Brumby and Labor simply cannot be trusted when it comes to managing Victoria's finances," Mr Wells said.

Brumby’s $10 Billion Blowout On State Projects

May-03-2010

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