Media Release

10 November 2015

O’Brien: Daniel Andrews’ East West Link deceit

Tuesday 10 November 2015


Daniel Andrews’ East West Link deceit

In a government report snuck out this afternoon it has become clear that Daniel Andrews’ decision to tear up the East West Link contract has exposed his government as wasteful, deceitful and incompetent.

The Treasury Corporation of Victoria 2014-15 Annual Report reveals that the additional cost of financial liabilities associated with the East West Link settlement is $217 million.

This disclosure is confirmed by the Department of Treasury & Finance 2014-15 Annual Report which reveals that expenses associated terminating the East West Link project have blown out by 186%.

This brings the total amount wasted by Daniel Andrews on ripping up the East West Link contract to at least $857 million.

Daniel Andrews has been caught out lying again to Victorians about our state’s financial position.

For the last 14 months Daniel Andrews has consistently misled Victorians on the real cost of his reckless decision to tear up the East West Link contract.

On 30 September 2014, Daniel Andrews claimed the East West Link contract wasn’t worth the paper it was written on and therefore there’d be no cost to the taxpayer by tearing them up.

“Be very clear about this, the contracts are not worth the paper they’re written on.  This is not a legally binding contract.”

On 15 April 2015, Daniel Andrews changed his position, claiming that the cost of tearing up the contract was actually $339 million.

“So far as our arrangements with the consortium are concerned, $339 million is the total liability that will be paid.”

Daniel Andrews and Tim Pallas also tried to claim that the $339 million figure was capped and wouldn’t increase.

“…capping the state’s liability to those $339 million all paid out by the previous government…”

And today we learn the real figure is now over $850 million.

The decision by Daniel Andrews to scrap the East West Link contract and waste over $850 million will cost Victorians new schools, ambulance and police stations, trains and hospitals.  The tearing up of the East West Link contract has also cost Victoria up to 7,000 new jobs at a time when our state is losing full time jobs.