Mr. Day questions the Minister about potential cost overruns and delays in the Perth to Mandurah railway project, citing the Auditor General's report. The Minister defends the project management and reaffirms the original budget and timeline, while acknowledging challenges.

AnsweredQoN 459Legislative Assembly
Asked
31 August 2005
Portfolio
Planning and Infrastructure

QuestionView source ↗

The member for Perth cannot help himself again. I refer to the Perth to Mandurah railway project and the industrial action that has recently affected the project, together with the Auditor General’s report on the City Rail component that was released today. Among other things, it reports that the eventual outcome of the City Rail project cannot be predicted, significant challenges lie ahead, the project is behind schedule, the complex tunnel-boring phase is yet to commence, some high-value claims are being disputed and industrial issues are evident. These challenges will put all parties under increasing pressure. Does the minister stand by her previously announced statement that the project will cost $1.563 billion and be completed in April 2007? If not, what is now the estimated cost and what is the expected completion date? Ms A.J.G. MacTIERNAN

AnswerView source ↗

I thank the member for the question and for the opportunity to welcome the Auditor General’s report. It is an absolute vote of confidence in the way this project is being managed. Mr J.H.D. Day interjected. The SPEAKER : Order, member! Ms A.J.G. MacTIERNAN : The Auditor General’s report is very important. It points out that this project is critical for the social, economic and environmental welfare of the state. It is important that this project be completed. Mr J.H.D. Day : Where does it say it is very important? The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
Does the minister stand by her previously announced statement that the project will cost $1.563 billion and be completed in April 2007? If not, what is now the estimated cost and what is the expected completion date? Ms A.J.G. MacTIERNAN replied: I thank the member for the question and for the opportunity to welcome the Auditor General’s report. It is an absolute vote of confidence in the way this project is being managed. Mr J.H.D. Day interjected. The SPEAKER : Order, member! Ms A.J.G. MacTIERNAN : The Auditor General’s report is very important. It points out that this project is critical for the social, economic and environmental welfare of the state. It is important that this project be completed. Mr J.H.D. Day : Where does it say it is very important? The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
Ms A.J.G. MacTIERNAN replied: I thank the member for the question and for the opportunity to welcome the Auditor General’s report. It is an absolute vote of confidence in the way this project is being managed. Mr J.H.D. Day interjected. The SPEAKER : Order, member! Ms A.J.G. MacTIERNAN : The Auditor General’s report is very important. It points out that this project is critical for the social, economic and environmental welfare of the state. It is important that this project be completed. Mr J.H.D. Day : Where does it say it is very important? The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
I thank the member for the question and for the opportunity to welcome the Auditor General’s report. It is an absolute vote of confidence in the way this project is being managed. Mr J.H.D. Day interjected. The SPEAKER : Order, member! Ms A.J.G. MacTIERNAN : The Auditor General’s report is very important. It points out that this project is critical for the social, economic and environmental welfare of the state. It is important that this project be completed. Mr J.H.D. Day : Where does it say it is very important? The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
Mr J.H.D. Day interjected. The SPEAKER : Order, member! Ms A.J.G. MacTIERNAN : The Auditor General’s report is very important. It points out that this project is critical for the social, economic and environmental welfare of the state. It is important that this project be completed. Mr J.H.D. Day : Where does it say it is very important? The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
The SPEAKER : Order, member! Ms A.J.G. MacTIERNAN : The Auditor General’s report is very important. It points out that this project is critical for the social, economic and environmental welfare of the state. It is important that this project be completed. Mr J.H.D. Day : Where does it say it is very important? The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
Ms A.J.G. MacTIERNAN : The Auditor General’s report is very important. It points out that this project is critical for the social, economic and environmental welfare of the state. It is important that this project be completed. Mr J.H.D. Day : Where does it say it is very important? The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
Mr J.H.D. Day : Where does it say it is very important? The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
The SPEAKER : Order! I am sure that when the member for Darling Range asked a question, he wanted the minister to answer it. When the answer deviates from what the member thinks is the truth, he should not interject to stop the minister from answering the question. Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
Ms A.J.G. MacTIERNAN : I will take the liberty of answering the very last question that the member for Darling Range asked. The Auditor General’s report states - City Rail, apart from being a major project on its own merits, is the vital link in realising the economic, social and environmental benefits of New MetroRail . . . The successful delivery of the City Rail Project is therefore of considerable importance to the State. This is an absolute vote of confidence in the way this project is being managed. The government has always said that this is a very complex project. Great transformative projects for the state are not done easily; by their very nature they are hard. What this report is telling us is that we have taken on this hard project - Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
Several members interjected. The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
The SPEAKER : Order! I call to order the members for Vasse, Carine and Warren-Blackwood. Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
Ms A.J.G. MacTIERNAN : Thank you, Mr Speaker. As this report says, this project is being managed very well and in a very disciplined way. One of the findings of the report is that changes in scope are generally the greatest threat to these projects. The report says that we have kept scope changes to a bare minimum, again demonstrating that this project is being managed well. In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.
In relation to the cost, we have made provision in the budget for rise and fall, on top of the contract price. Over and above that provision for rise and fall there is an additional $70 million for contingencies. We are pleased to say that the tunnel-boring machine will begin operating within a month. The contractor tells us that it still expects to finish the City Rail project on 30 December 2006, which will allow us, of course, to commence operations by April 2007. We are confident at this stage that the contingency figure and the rise and fall provisions are sufficient to take into account all the claims for rise and fall that are currently before us. As I said when I announced the budget revision earlier this year, we will be doing that process again as part of next year’s budget. I guess this report is saying that we are doing this job as well as it could possibly be done.

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