❓ Question regarding leasing contracts for the Perth to Mandurah railway under the previous government, answered with criticism of the previous government's handling of the railcar acquisition and a defense of the current government's approach.
AnsweredQoN 1116Legislative Assembly
QuestionView source ↗
I refer to the Auditor General’s comments last week about leasing contracts. Can the minister advise the House of any leasing contracts the previous Government was going to enter into for the Perth to Mandurah railway? Several members interjected. The SPEAKER: Order! Ms A.J. MacTIERNAN
AnswerView source ↗
Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Several members interjected. The SPEAKER: Order! Ms A.J. MacTIERNAN replied: Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
The SPEAKER: Order! Ms A.J. MacTIERNAN replied: Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Ms A.J. MacTIERNAN replied: Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Several members interjected. The SPEAKER: Order! Ms A.J. MacTIERNAN replied: Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
The SPEAKER: Order! Ms A.J. MacTIERNAN replied: Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Ms A.J. MacTIERNAN replied: Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Well may the budget bandit laugh. The member for Mandurah will continue to ask questions about the Mandurah rail line, because it has now become clear that there is only one party in this State that is committed to developing and delivering this rail line, as promised, to the people of Rockingham - Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Several members interjected. The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
The SPEAKER: Members! Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
Ms A.J. MacTIERNAN: They get very excited about the railway, but they will not build it. The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
The Auditor General’s report last week was very interesting, and reflected on what is often a lack of analysis in entering into lease rather than purchase arrangements. There is no clearer example than the proposal by the previous Government for the acquisition of the new railcars. When the Labor Party came to government, we discovered that the previous Government had started a tender process whereby all the railcars to be obtained would be leased. Because the railway was proposed to deviate via Kenwick, 117 railcars would have been needed. We were unable to find any record whatsoever of any economic analysis to support the idea that the railcars should be leased rather than purchased. We had a lot of difficulty because not only had the previous Government not done the analysis, but also it had not even provided an option when it went out to the market; it was lease only. When Treasury did a very rigorous analysis, it became quite clear that it would have cost the State $25 million more to operate the railcars by way of lease rather than to purchase them. We have been able to offer a double benefit to the State, because not only does the fast direct rail link require only 93 railcars - at a saving of $100 million - but also the Government is not attempting to hide it from the budget, and is saving an additional $25 million.
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