CLAIMS of a “cost blowout” on the Newcastle light rail appear to have been vindicated, with a NSW Auditor-General report on the state’s transport network revealing the Hunter Street project is $35 million over its $255 million budget.
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The Audit Office of NSW released its report on the state’s transport network on Friday, revealing the project’s cost had risen from $255 million to $290 million.
That new figure closely matches claims from Labor earlier this year of the project going over its budget citing a Cabinet in Confidence document dated March that pegged the cost at $290.2 million.
Newcastle MP Tim Crakanthorp said the report “confirms what we have known the whole time”.
“There is in fact a $35 million cost blowout on the light rail project,” he said.
“It confirms that the Premier and Transport Minister misled the people of Newcastle when I raised this issue earlier in the year.”
Comment was sought on Friday from Parliamentary Secretary for the Hunter Scot MacDonald’s office, who redirected questions to Transport for NSW.
Transport for NSW in July refused to answer a series of questions about the supposed extra $35 million.
“Because Newcastle light rail is being delivered by a private sector managing contractor, who will subcontract the majority of the work, detailed cost breakdowns are not being disclosed,” a spokesman said.
“This will ensure value for money and that Novocastrians get the best bang for their buck, as well as opportunities for local jobs on the project.”
The NSW Auditor-General report also revealed cost blowouts in Sydney’s light rail project.
Newcastle’s increased budget was one of three with a larger revised budget alongside the state capital’s WestConnex ($16.8 billion, up from $14.9 billion) and the Sydney CBD and South East light rail ($2.1 billion instead of $1.6 billion).
The state’s third light rail project, in Parramatta, remained on track to stick with its budgeted $3.4 billion.
The Newcastle Herald reported in October that Auditor-General Margaret Crawford would move up her examination of the Newcastle system’s costs to this financial year after initially planning to examine it in the 2019/2020 period.
That new timeframe followed Labor claims of the budget change.
In July a spokeswoman for Transport Minister Andrew Constance did not explain the $35 million figure and would only say the project was “on time and on budget”.
The Auditor-General’s report, which spans far beyond the Hunter, recommends Transport for NSW develops targets on bus crowding for operators across the state and publish those results.
It also found customer satisfaction “exceeded target for all modes of public transport”.
Matt Carr
Matt began his Newcastle Herald career as a cadet in 2009. He is a Walkley nominated reporter who has covered councils, police and general news rounds across the Upper Hunter, Port Stephens, Maitland, Lake Macquarie, Cessnock and Newcastle. Now his focus is on digital storytelling and breaking news.
Matt began his Newcastle Herald career as a cadet in 2009. He is a Walkley nominated reporter who has covered councils, police and general news rounds across the Upper Hunter, Port Stephens, Maitland, Lake Macquarie, Cessnock and Newcastle. Now his focus is on digital storytelling and breaking news.
