The $180m bill to calculate the Inland Rail blow-out
Stephanie Gardiner and Andrew Brown |
Consultant firms were paid almost $180 million to estimate the bloated Inland Rail budget, while a departing executive got $317,000 soon before half the freight route was scrapped.
The federal government shelved the Inland Rail route north of Parkes, in central NSW, in early May, amid a budget blow-out of at least $45.6 billion.
That was nearly 10 times the estimated cost put forward in 2015 for the rail corridor, which was originally intended to connect Melbourne and Brisbane.
A budget estimates hearing on Tuesday night was told of generous packages paid to Inland Rail executives, including $317,000 to Nick Miller upon his departure as chief executive in mid-2025.
Taxpayers also footed a bill of more than $179 million over three years for consultants investigating the cost and economics of the project.
Interim chief executive Fiona McDougall said the report that uncovered the $45.6 billion blow-out was highly technical, taking in increased labour costs and the extended time frame.
“Contingency and time are the significant contributor in the increase to the estimated cost,” she said.
Work on environmental approvals and land acquisition north of Parkes would continue so the route can be preserved for any future construction.
But compensation for regional businesses and workers who were geared up to support the northern route would be a decision for the government, Ms McDougall said.
“We deal with people in our communities every day. We’ve got staff up there, we’ve built up long-term relationships, so we deeply care about the people in our communities,” she said.
“In regard to compensation, that’s a matter for government.”
Meanwhile, the man known as the grandfather of Inland Rail is lobbying Infrastructure Minister Catherine King to keep the dream alive.
Everald Compton, who first pitched the idea of a back country freight route in 1996, is determined to see the project move quickly into private hands and had a hopeful meeting with Prime Minister Anthony Albanese on Tuesday.
“I can’t say I signed any documents, but it was a very positive meeting,” Mr Compton told AAP in Canberra.
He will now take his quest to Ms King to negotiate a potential contract, which he would like to finalise within weeks.
“I’m 94-years-old mate, I can’t muck around,” Mr Compton said.
Earlier in May, Mr Albanese said he was open to the idea of a private sector operator.
“But the truth is that we had to bite the bullet and make a decision based upon what was before the government,” he told Newcastle radio 2HD.
“This was supposed to be completed last decade.”
AAP