Question regarding potential cost blow-out and delays to a government project due to a CFMEU deal. The Minister denies a cost blow-out, attributing increased costs to CPI adjustments.

AnsweredQoN 351Legislative Assembly
Asked
26 November 2002
Portfolio
Planning and Infrastructure

QuestionView source ↗

I ask a supplementary question. Will the minister guarantee that the new CFMEU deal will not cause either a further blow-out in the Government’s official estimate of the project, including cost escalations; or a further delay in the project’s completion date beyond December 2007? The SPEAKER: Order! The first part of the question is all the minister is required to answer. Ms A.J. MacTIERNAN

AnswerView source ↗

There is no cost blow-out. We have said that time and time again. Mr M.W. Trenorden: Yes there is. Ms A.J. MacTIERNAN: We have got the Maxi-meter! There is no cost blow-out. There is $168 million worth of escalation. I very much like the member for Carine, but she has yet to grasp the fact that when we provide a consumer price index figure - that is, we provide a figure in 2006 that is the same as the 1998 figure, except that we have allowed for inflation - that is not a cost blow-out but is in real money terms the same amount of money. That is a concept that I think some members of the Opposition are struggling with. In summary, there is no cost blow-out. We have no reason to believe, for the reasons that I have quite cogently set out previously, to think that the CFMEU arrangement will lead to any additional increase.
The SPEAKER: Order! The first part of the question is all the minister is required to answer. Ms A.J. MacTIERNAN replied: There is no cost blow-out. We have said that time and time again. Mr M.W. Trenorden: Yes there is. Ms A.J. MacTIERNAN: We have got the Maxi-meter! There is no cost blow-out. There is $168 million worth of escalation. I very much like the member for Carine, but she has yet to grasp the fact that when we provide a consumer price index figure - that is, we provide a figure in 2006 that is the same as the 1998 figure, except that we have allowed for inflation - that is not a cost blow-out but is in real money terms the same amount of money. That is a concept that I think some members of the Opposition are struggling with. In summary, there is no cost blow-out. We have no reason to believe, for the reasons that I have quite cogently set out previously, to think that the CFMEU arrangement will lead to any additional increase.
Ms A.J. MacTIERNAN replied: There is no cost blow-out. We have said that time and time again. Mr M.W. Trenorden: Yes there is. Ms A.J. MacTIERNAN: We have got the Maxi-meter! There is no cost blow-out. There is $168 million worth of escalation. I very much like the member for Carine, but she has yet to grasp the fact that when we provide a consumer price index figure - that is, we provide a figure in 2006 that is the same as the 1998 figure, except that we have allowed for inflation - that is not a cost blow-out but is in real money terms the same amount of money. That is a concept that I think some members of the Opposition are struggling with. In summary, there is no cost blow-out. We have no reason to believe, for the reasons that I have quite cogently set out previously, to think that the CFMEU arrangement will lead to any additional increase.
There is no cost blow-out. We have said that time and time again. Mr M.W. Trenorden: Yes there is. Ms A.J. MacTIERNAN: We have got the Maxi-meter! There is no cost blow-out. There is $168 million worth of escalation. I very much like the member for Carine, but she has yet to grasp the fact that when we provide a consumer price index figure - that is, we provide a figure in 2006 that is the same as the 1998 figure, except that we have allowed for inflation - that is not a cost blow-out but is in real money terms the same amount of money. That is a concept that I think some members of the Opposition are struggling with. In summary, there is no cost blow-out. We have no reason to believe, for the reasons that I have quite cogently set out previously, to think that the CFMEU arrangement will lead to any additional increase.
Mr M.W. Trenorden: Yes there is. Ms A.J. MacTIERNAN: We have got the Maxi-meter! There is no cost blow-out. There is $168 million worth of escalation. I very much like the member for Carine, but she has yet to grasp the fact that when we provide a consumer price index figure - that is, we provide a figure in 2006 that is the same as the 1998 figure, except that we have allowed for inflation - that is not a cost blow-out but is in real money terms the same amount of money. That is a concept that I think some members of the Opposition are struggling with. In summary, there is no cost blow-out. We have no reason to believe, for the reasons that I have quite cogently set out previously, to think that the CFMEU arrangement will lead to any additional increase.
Ms A.J. MacTIERNAN: We have got the Maxi-meter! There is no cost blow-out. There is $168 million worth of escalation. I very much like the member for Carine, but she has yet to grasp the fact that when we provide a consumer price index figure - that is, we provide a figure in 2006 that is the same as the 1998 figure, except that we have allowed for inflation - that is not a cost blow-out but is in real money terms the same amount of money. That is a concept that I think some members of the Opposition are struggling with. In summary, there is no cost blow-out. We have no reason to believe, for the reasons that I have quite cogently set out previously, to think that the CFMEU arrangement will lead to any additional increase.

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