Opposition Outcry At Waste

Sydney Morning Herald

Saturday July 2, 2005

Anne Davies State Political Editor

The State Government has racked up $23 million in insurance claims from government vehicles since the 2003 election, according to the Opposition's latest waste-watch report.

The Carr Government has also been accused of presiding over numerous cost blow-outs in projects, the most notable being the Chatswood-Epping Rail Link, which the Opposition calculates is $1.2 billion over budget.

Releasing its latest assessment of waste, the chairman of the Opposition's waste-watch committee, Greg Pearce, said total cost overruns on projects and programs sponsored by the NSW Government since March 2003 were now more than$6 billion.

"What's more, this astounding figure is snowballing every day," Mr Pearce said.

He was particularly critical of the Government's management of infrastructure projects, saying there had been blow-outs in just about every big project it had undertaken.

But the Government rejected the claim, and closer scrutiny revealed some of the Opposition's numbers were questionable.

For example, the $23 million in insurance claims includes claims made by the Health Department, the police and fire brigades. This would include damage to ambulances and police cars, which spend many hours on the road.

The figures also include $195 million spent on consultants for the financial years 2002-03 and 2003-04, and $51 million paid out asstress leave.

A spokesman for the Treasurer, Anthony O'Brien, also took issue with the Opposition's treatment of cost blow-outs.

"The Government has been absolutely upfront about the reasons behind the increases in the cost of the Chatswood-Epping rail link," he said.

As for the calculations of cost blow-outs, often a project cost is estimated but then it went to tender, and through the planning and environmental assessment process.

"Every government around the world knows that the cost of projects can change. It can be due to the cost of materials or the cost of meeting the planning requirements," he said.

Mr Pearce's list also included $39 million for displaced public servants, which he described as the cost of a sop to the union movement, and $115 million that he said was the cost blow-out on water projects.

© 2005 Sydney Morning Herald

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