Question regarding conflicting statements about a $437 million railcar contract, specifically the breakdown between railcar cost and maintenance. The Minister refutes misleading the House, claiming a $108 million saving compared to the previous government's plan.

AnsweredQoN 990Legislative Assembly
Asked
15 May 2002
Portfolio
Planning and Infrastructure

QuestionView source ↗

I refer the minister to her statement yesterday that the recently signed $437 million railcar contract included two separate components - the cost of the railcars of approximately $300 million and additional costs for the maintenance of those railcars. The minister’s media statement dated 8 December 2001 states that the $300 million contract will include the maintenance of the new railcars for 15 years. (1) How does the minister reconcile these two conflicting statements? (2) Will the minister admit that she misled the House yesterday and that the contract cost has blown out by $137 million? Ms MacTIERNAN

AnswerView source ↗

(1)-(2) I have endeavoured to explain that there are two components to this contract, and there always were to be two components to this contract. The reality is that the Government has saved $108 million on this contract. It anticipated a saving of $79 million. Several members interjected. Ms MacTIERNAN: I am quite happy to refer the member to the south west metropolitan rail master plan and to the northern suburbs master plan. If she looks at those documents, she will see very clearly that the capital component for the purchase of the railcars in the previous Government’s master plan was $398 million. We have been able to reduce that cost to $290 million. We have done better than we said we would. We said that we would save $79 million and we have saved $108 million.
(1) How does the minister reconcile these two conflicting statements? (2) Will the minister admit that she misled the House yesterday and that the contract cost has blown out by $137 million? Ms MacTIERNAN replied: (1)-(2) I have endeavoured to explain that there are two components to this contract, and there always were to be two components to this contract. The reality is that the Government has saved $108 million on this contract. It anticipated a saving of $79 million. Several members interjected. Ms MacTIERNAN: I am quite happy to refer the member to the south west metropolitan rail master plan and to the northern suburbs master plan. If she looks at those documents, she will see very clearly that the capital component for the purchase of the railcars in the previous Government’s master plan was $398 million. We have been able to reduce that cost to $290 million. We have done better than we said we would. We said that we would save $79 million and we have saved $108 million.
(2) Will the minister admit that she misled the House yesterday and that the contract cost has blown out by $137 million? Ms MacTIERNAN replied: (1)-(2) I have endeavoured to explain that there are two components to this contract, and there always were to be two components to this contract. The reality is that the Government has saved $108 million on this contract. It anticipated a saving of $79 million. Several members interjected. Ms MacTIERNAN: I am quite happy to refer the member to the south west metropolitan rail master plan and to the northern suburbs master plan. If she looks at those documents, she will see very clearly that the capital component for the purchase of the railcars in the previous Government’s master plan was $398 million. We have been able to reduce that cost to $290 million. We have done better than we said we would. We said that we would save $79 million and we have saved $108 million.
Ms MacTIERNAN replied: (1)-(2) I have endeavoured to explain that there are two components to this contract, and there always were to be two components to this contract. The reality is that the Government has saved $108 million on this contract. It anticipated a saving of $79 million. Several members interjected. Ms MacTIERNAN: I am quite happy to refer the member to the south west metropolitan rail master plan and to the northern suburbs master plan. If she looks at those documents, she will see very clearly that the capital component for the purchase of the railcars in the previous Government’s master plan was $398 million. We have been able to reduce that cost to $290 million. We have done better than we said we would. We said that we would save $79 million and we have saved $108 million.
(1)-(2) I have endeavoured to explain that there are two components to this contract, and there always were to be two components to this contract. The reality is that the Government has saved $108 million on this contract. It anticipated a saving of $79 million. Several members interjected. Ms MacTIERNAN: I am quite happy to refer the member to the south west metropolitan rail master plan and to the northern suburbs master plan. If she looks at those documents, she will see very clearly that the capital component for the purchase of the railcars in the previous Government’s master plan was $398 million. We have been able to reduce that cost to $290 million. We have done better than we said we would. We said that we would save $79 million and we have saved $108 million.
Several members interjected. Ms MacTIERNAN: I am quite happy to refer the member to the south west metropolitan rail master plan and to the northern suburbs master plan. If she looks at those documents, she will see very clearly that the capital component for the purchase of the railcars in the previous Government’s master plan was $398 million. We have been able to reduce that cost to $290 million. We have done better than we said we would. We said that we would save $79 million and we have saved $108 million.
Ms MacTIERNAN: I am quite happy to refer the member to the south west metropolitan rail master plan and to the northern suburbs master plan. If she looks at those documents, she will see very clearly that the capital component for the purchase of the railcars in the previous Government’s master plan was $398 million. We have been able to reduce that cost to $290 million. We have done better than we said we would. We said that we would save $79 million and we have saved $108 million.

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