Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Australian PPP failures a warning for Transmission Gully

22 November 2012

Australian PPP failures a warning for Transmission Gully

New research shows that Public-Private Partnerships (PPPs) are a recipe for expensive, white elephant highways, Green Party transport spokesperson Julie Anne Genter said today.

Recent research from Australian Professor John Goldberg shows that PPPs are a bad investment that routinely grossly over-estimate traffic volumes and, therefore, the economic benefit of PPP projects. Professor Goldberg concludes: "The public-private partnership concept has failed in Australia”. Additionally, analysis conducted for the Green Party confirms a legacy of cost blow-outs and low traffic volumes.

“The failure of the PPP model in Australia should be a lesson for New Zealand. Yet the National Government is repeating the same mistakes by announcing a PPP for Transmission Gully,” said Ms Genter.

“Private consortiums in PPPs know that they have an effective taxpayer guarantee on their investment. That results in over-hyped projects that end up costing billions more than expected and fail to deliver the promised traffic volumes.

“In Australia, ordinary investors have lost their shirts and taxpayers have been saddled with multi-billion dollar bills, while the investment banks and developers walk away with enormous profits.

“The companies operating Cross City, Clem7, and Lane Cove PPPs all failed soon after their projects opened and the Brisconnections company is heading the same way. New Zealanders would face a similar debacle if the Transmission Gully PPP goes ahead.

“National has already acknowledged that borrowing for the construction of Transmission Gully rather than paying for it out of the National Land Transport Fund will add $300 million in interest to the cost of the project before it even opens. If the Australian experience is anything to go by, this would be just the first of many cost blow-outs.

“Public-Private Partnerships have proven to be a very costly failure across the Tasman. Why would we repeat that mistake here?” said Ms Genter.


Summary of major PPP roading projects in Australia

Australia PPP Roading Projects

Project

State

Initial Forecast Cost

Actual Cost

Traffic Forecast

Actual traffic

Clem 7 Tunnel

QLD

$1.2 Billion

$3 Billion

Opening 60,000

34,705 (2010 peak during lower toll period)

100,000 (2012)

28,086 (Feb 2012)

Lane Cove Tunnel

NSW

$1.1 billion

$1.6 Billion

110,000 (2007)

40,000 (2007)

120,000 (2010)

66,694 (2010)

 

67,795 (2011)

WestLink M7

NSW

1.856 billion

$1.9 billion

150,000 (2006)

100,000 (2006)

225,000 (2010)

128,973 (June 2010)

 

135,691 (June 2011)

Cross City Tunnel

NSW

$620 million

$1 Billion

87,600 (2006)

34,000 (2006)

Melbourne City Link

VIC

$1.5 Billion

$2.15 Billion

730,000 (2011)

710,483  (2010)

 

747,021 (2011)

Go between bridge

QLD

$120 million

$342 million

12,800 Oct 2010

11,700 (Sept 2010)

17,500 2011

Peak 15,783 ($1 reduced toll)

Brisconnections

QLD

 

$4.8 billion

135,885 (August 2012)

81,470 (August 2012, no toll for account holders)

 

 

 

 

53,172 (October 2012)

Eastern link

VIC

$2 billion

$2.5 billion

300,000 (2012)

200,000 (2012)

250,000 (2009)

158,900 (2009)


Compiled by the Parliamentary Library

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Two Years With New Methods: Crime Stats Show Increase Led By Burglary

The two years of data show an increase in the total victimisation rate of 3.1 per cent, with 12,060 more victimisations in the 2015/16 year when compared to 2014/15 year. From this increase, 72 per cent is attributable to burglaries. More>>

ALSO:

Auckland Relocation Grants: 12 Grants Paid So Far

Since the policy took effect one month ago, 12 applicants have received the non-recoverable grant, supporting 32 people. $54,508 has been paid out, covering things like moving costs, bond, rent in advance and letting fees. More>>

ALSO:

Vaccine Funding Change: HPV Vaccines For All Children

PHARMAC has today announced changes to funded vaccines, which will benefit an extra 100,000 people... The human papillomavirus (HPV) vaccine will be available for all children and adults up to the age of 26 years, and boys will now be included in the HPV school vaccination programme. More>>

ALSO:

Gordon Campbell: On Why The Opinion Polls For Key And Trump Defy Gravity

What is going on? Donald Trump got confirmed as the Republican presidential candidate at a bizarrely chaotic political convention… and promptly received an upwards bump in the polls to where he’s now rating ahead of Hillary Clinton, for only the second time this year. More>>

Sugar: Auckland Leisure Centres Axe Unhealthy Drinks

Auckland Council is to stop selling drinks that are sweetened by sugar from vending machines at its leisure centres in a bid to try to reduce obesity and type 2 diabetes... More>>

ALSO:

Gordon Campbell: On Todd McClay’s Faulty Memory

Time and again, whenever an issue arises the initial response by government is to deny or diminish the problem – nothing to worry about here, everything’s OK, move on. Then, hang on. In line with the usual pattern, as embarrassing details emerged into daylight, the story changed. More>>

ALSO:

Labour's 'Future Of Work': Major Reform Of Careers And Apprenticeships

The next Labour Government will transform careers advice in high schools to ensure every student has a personalised career plan, Leader of the Opposition Andrew Little says. More>>

ALSO:

State Investments Management: Treasury Likes IRD, Not Education Or Corrections

The Inland Revenue Department has scored an 'A' in the first tranche of the Treasury's investor confidence rating for state agencies that manage significant Crown investments and assets, gaining greater autonomy as a result, while the Corrections and Education ministries gained a 'C' rating. More>>

ALSO:

Govt Goal: NZ To Be "Predator Free" By 2050

Prime Minister John Key has today announced the Government has adopted the goal of New Zealand becoming Predator Free by 2050... “That’s why we have adopted this goal. Our ambition is that by 2050 every single part of New Zealand will be completely free of rats, stoats and possums." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news