Simon Corbell needs to justify his extraordinary statement that the cost involved with cancelling his light rail project will be more than that of cancelling the $10 billion Melbourne East West Link, Shadow Minister for Transport Alistair Coe said today.
“Yesterday, Simon Corbell claimed it would cost at least $340 million to stop the light rail project once contracts have been signed. That would amount to 43 percent of the stated cost. That’s also in contrast to the 3 percent cancellation fee paid by the Victorian Labor government to cancel Melbourne’s East West Link,” Mr Coe said.
“The fact that Minister Corbell purports to know a cancellation fee before a consortium has been chosen and months before a contract has been signed is bizarre.
“Further to this, Minister Corbell seems to be determined to increase the cancellation cost which suggests that he is not acting in the best interests of Canberra taxpayers. Simon Corbell should be seeking to drive costs down, not increase them.
“The government has been irresponsible with this project since it was agreed to on the back of the deal with Shane Rattenbury to form a government following the 2012 election.
“If Victorian Labor can cancel the East West Link for 3 percent of the contract price, there’s no reason why Simon Corbell shouldn’t be demanding a similar or better cancellation rate for light rail.
“The Canberra Liberals will continue to do all we can to hold the Labor/Greens government to account on this politically motivated project,” Mr Coe concluded.