The Wickham transport interchange and associated works are “on budget” at $200 million but Labor disagrees and the Greens have referred the project to the auditor-general.
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The dispute over the cost of the project emerged this week when the government said the interchange would be open in time for the Newcastle Supercars race in November.
In December 2014 the government said contractor Laing O’Rourke had won a $73-million contract to build the interchange, which is taking shape on the rail corridor next to Stewart Avenue.
But in its Supercars announcement, Revitalising Newcastle program director Michael Cassel said “the project is on budget to be completed at a cost of around $200 million” – a figure almost three times the $73 million.
Newcastle Labor MP Tim Crakanthorp said Mr Cassel’s revelation showed the Newcastle light rail project was on its way to following the George Street, Sydney, light rail, which has seen its budget blow out by almost $550 million to $2.1 billion.
Greens MLC Mehreen Faruqi, the party’s transport spokesperson, said she had referred the Newcastle light rail to the auditor-general.
Asked about the government about the blowout claims, Mr Cassel said the $200 million figure included much more than just the interchange.
Mr Cassel said it also included truncating the line back to Stewart Avenue, building a new train stabling facility east of Hamilton Station, closing Railway Street and building a pedestrian bridge over the railway line, installing new crew facilities and modifying signals, overhead wiring and similar works.
Although Stewart Avenue motorists can see the eastern end of the interchange taking shape, work on the long covered platforms is mostly hidden behind neighbouring buildings.
A construction hoarding has also gone up in front of The Store building, which the government bought in late in late 2015 as part of the interchange development.
The Newcastle Herald understands that land at the rear of The Store building will be used for the interchange bus stops, with the buses moving in and out of Hunter Street through an existing set of lights west of The Store and opposite the Cambridge Hotel.
Although nearby businesses said they had heard The Store was going to be demolished, Mr Cassel said the building’s facade was starting to crumble, and the covered hoarding was needed to protect the public.
“We need planning approval to demolish anything and that requires public notification,” Mr Cassel said.
“We are working on some really exciting things which we will talk about when we can, but I am sure that most people will love it.”
Mr Cassel said the hoarding had been approved by Newcastle City Council would remain in place until the future of the building was resolved.
Labor MP Tim Crakanthorp said it was time for the government to stop “drip-feeding” information and to lay its plans clearly on the table.
Mr Crakanthorp said the only reason the government came out this week with the $200 million figure was because he had lodged a freedom of of information request.
“I lodged an application under the Government Information (Public Access) Act on December 7 and on February 6, Transport for NSW released its information to me,” Mr Crakanthorp said.
“The next day, the government sent Mr Cassel out to soften the people up for the big difference between the value of the Wickham contract and the total cost of the project and associated works.”
Mr Crakanthorp said the public should not have to rely on freedom of information laws to obtain details of a project that “taxpayers are paying for”.
“The Government promises openness and transparency but apparently not on this project,” Mr Crakanthorp said.
“A number of major documents, including the business case and the cost/benefit analysis that were released for the Sydney CBD light rail have been withheld for the Newcastle project. What has the government got to hide?”
The Newcastle light rail project had an original construction budget of $460 million, which went to $510 million when the Shooters and Fishers extracted another $50 million from the Coalition government to support the rail truncation bill.
Greens MLC Mehreen Faruqi said the way the Newcastle light rail had been handled raised “serious and considerable questions” about “the appropriate use of public resources, or whether there was a lack of probity or financial prudence in the management or application of those resources”.