Media Release

20 September 2016

Davis: Another Labor budget blow out

Tuesday 20 September 2016

Another Labor budget blow out

Daniel Andrews’ admission today that the level crossing removal project may blow out by over $1 billion proves once again that Labor just can’t manage money.

Sadly, Victorians won’t be surprised.  A more surprising Labor announcement would be that one of their projects is actually on budget.

According to Daniel Andrews, the alleged benefit of Sky Rail was that it was a cheaper alternative. That it now looks like recording a $1 billion blow out, only adds insult to injury for the thousands of residents who will be forced to live with a cheap and nasty Sky Rail for the rest of their lives and for generations to come.

Victorian taxpayers would be seriously wondering whether Daniel Andrews can manage the windfall gain from the Port of Melbourne lease, given they can’t manage this one project.

The fact this Government seems unconcerned that this project looks like blowing out by over 15% shows Daniel Andrews knew all along his costings were dodgy and that cheap and nasty Sky Rail would be forced on unsuspecting Victorians.

As the Auditor-General warned in his May 2016 report, Managing and Reporting on the Performance and Cost of Capital Projects:  “However, proceeding with this (level crossing removal) program without an overall business case is not recommended practice and raises the risks around the timely and efficient delivery of the intended benefits. Precise cost and benefit estimates for the program have not yet been prepared and validated.”

The result is a massive cost blow out for substandard outcomes with cheap and nasty 1950s style viaducts to scar our suburbs. Daniel Andrews can’t manage major projects and he can’t manage Victorians’ money.