❓ Opposition Leader McGowan questions the Treasurer about cost increases for the Metro Area Express (MAX) light rail project and its connection to the proposed sale of Western Power. The Treasurer defends the government's transport spending and shifts blame to growing infrastructure costs and changing community needs.
AnsweredQoN 411Legislative Assembly
QuestionView source ↗
METRO AREA EXPRESS LIGHT RAIL
411. Mr M. McGOWAN to the Treasurer:
My question without notice —
Mr
P.T. Miles interjected.
The
SPEAKER : Member for Wanneroo, you are now on three calls.
Mr
M. McGOWAN : I refer to the government's transport plans and the
Treasurer's comments that the cost of the Metro Area Express has blown
out and become ''more and more costly because of the infrastructure
underneath''.
(1) What is the latest cost provided
to the Treasurer of MAX to justify breaking this election promise?
(2) Did he not
say that the government's transport plans were contingent upon the sale
of Western Power?
411. Mr M. McGOWAN to the Treasurer:
My question without notice —
Mr
P.T. Miles interjected.
The
SPEAKER : Member for Wanneroo, you are now on three calls.
Mr
M. McGOWAN : I refer to the government's transport plans and the
Treasurer's comments that the cost of the Metro Area Express has blown
out and become ''more and more costly because of the infrastructure
underneath''.
(1) What is the latest cost provided
to the Treasurer of MAX to justify breaking this election promise?
(2) Did he not
say that the government's transport plans were contingent upon the sale
of Western Power?
AnswerView source ↗
(1)–(2) As
I indicated yesterday in response to a related question, our transport plans
are in the budget. It is the largest expenditure —
Mr
W.J. Johnston : MAX is in the budget?
Dr
M.D. NAHAN : Yes, it is. It is the largest expenditure by any government—over
$7 billion on transport over the next four years. It covers all modes of
transport. Indeed, I think we are getting awards for our contribution to spending on cycling, if I read the paper
correctly. As we went through with the issue earlier, we went to the last
election committing to build the Metro Area Express light rail. We put it off
for a time because of priorities. We also got hit, by the way, with substantial
reductions in revenue.
Mr
M. McGowan : What is the cost increase?
Dr
M.D. NAHAN : Just hold on. The Leader of the Opposition asked a question and
I am answering it.
The Department of Transport and the
Minister for Transport have looked at MAX rail in depth and have talked with
the community and others, and there are growing problems with its suitability
to meet the different needs of the community that it is designed for in terms
of density, speed and other issues. As I indicated, the information I have is
that as they looked at it, the cost of the infrastructure was growing
excessively.
Mr M. McGowan interjected.
The SPEAKER : Carry
on, through the Chair.
Dr M.D. NAHAN :
Noise, noise, noise!
The cost was going up relative to its benefit. The Minister
for Transport and the government have decided to do it a different way to
achieve the transport outcomes in a better, different and more cost-effective
way, and that is what we are going to do. Today I was asked how we will fund
our future infrastructure need and I said to look in the budget, which shows
that $7 billion has been invested in transport; over 50 per cent of the total
capital works budget for this government goes to transport. It is a huge
amount.
Going forward, the government after the next election will be
constrained by its ability to spend and it will have to look at non-debt
sources, including value capture, I indicated, and others. I did not say that
our transport plan is contingent upon selling or leasing Western Power. After
all, we have $7 billion in the budget that has nothing to do with Western
Power. We are pursuing the sale of Western Power. It will provide the next
government, if sold or leased, with a substantial increase in revenue to spend
on transport, perhaps, and other factors. That is the point I made.
I indicated yesterday in response to a related question, our transport plans
are in the budget. It is the largest expenditure —
Mr
W.J. Johnston : MAX is in the budget?
Dr
M.D. NAHAN : Yes, it is. It is the largest expenditure by any government—over
$7 billion on transport over the next four years. It covers all modes of
transport. Indeed, I think we are getting awards for our contribution to spending on cycling, if I read the paper
correctly. As we went through with the issue earlier, we went to the last
election committing to build the Metro Area Express light rail. We put it off
for a time because of priorities. We also got hit, by the way, with substantial
reductions in revenue.
Mr
M. McGowan : What is the cost increase?
Dr
M.D. NAHAN : Just hold on. The Leader of the Opposition asked a question and
I am answering it.
The Department of Transport and the
Minister for Transport have looked at MAX rail in depth and have talked with
the community and others, and there are growing problems with its suitability
to meet the different needs of the community that it is designed for in terms
of density, speed and other issues. As I indicated, the information I have is
that as they looked at it, the cost of the infrastructure was growing
excessively.
Mr M. McGowan interjected.
The SPEAKER : Carry
on, through the Chair.
Dr M.D. NAHAN :
Noise, noise, noise!
The cost was going up relative to its benefit. The Minister
for Transport and the government have decided to do it a different way to
achieve the transport outcomes in a better, different and more cost-effective
way, and that is what we are going to do. Today I was asked how we will fund
our future infrastructure need and I said to look in the budget, which shows
that $7 billion has been invested in transport; over 50 per cent of the total
capital works budget for this government goes to transport. It is a huge
amount.
Going forward, the government after the next election will be
constrained by its ability to spend and it will have to look at non-debt
sources, including value capture, I indicated, and others. I did not say that
our transport plan is contingent upon selling or leasing Western Power. After
all, we have $7 billion in the budget that has nothing to do with Western
Power. We are pursuing the sale of Western Power. It will provide the next
government, if sold or leased, with a substantial increase in revenue to spend
on transport, perhaps, and other factors. That is the point I made.
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