02-November-2010
Portfolio Media Releases, Infrastructure, The Economy
Labor’s commitment to conduct an “extensive feasibility study to determine the economic benefits and financial viability of a new multi-billion-dollar high speed rail network” exposes the unjustifiable double standards of this government.
Shadow Minister for Finance Andrew Robb said it was inexcusable that Minister for Infrastructure, Anthony Albanese, would insist on such a study before committing funds to a multi-billion-dollar high-speed rail project, but not conduct a cost-benefit analysis prior to committing billions to a high-speed broadband project.
“This double standard highlights the Gillard government’s ultimate contempt for taxpayers and should be exposed for what it is. Labor’s insistence on proper due diligence for one project, but pigheaded refusal in relation to the NBN is farcical,” Mr Robb said.
On one hand Mr Albanese thinks it’s vitally important to “undertake financial and economic modelling” and to examine “likely demand” for high-speed rail before committing a cent of taxpayers’ money, yet on the other he is happy to turn a blind eye, as Labor prepares to spend at least $27 billion on its ill-conceived NBN project.
“The NBN Implementation Study that Labor hides behind explicitly states that it did not involve a cost-benefit analysis because the government had already agreed to proceed with this particular policy,” Mr Robb said.
Mr Albanese needs to be reminded of his own hollow words back on 3 October 2008.
“The Rudd Labor Government was elected with a mandate to build the nation. We’ve established Infrastructure Australia to give us independent advice to make sure that we have a rigorous cost benefit analysis of any project which is being put forward.”
Mr Robb said if Labor is to be taken seriously it must commit to:
- Conducting cost-benefit analysis on all major infrastructure proposals.
- Publicly release the results of all cost-benefit analyses undertaken, before committing to proceed.
“It seems Labor cynically uses feasibility studies and cost-benefit analysis to justify killing off projects it does not want to proceed with, but does not apply the same rigour to those projects that it deems as politically advantageous,” Mr Robb said.
Media Contact: Cameron Hill on 0408 239 521