Wednesday, 22 January 2014
Labour's cost blow out to hike transport fares 22%
· Analysis shows Labor’s unfunded policy announcement massively undercosted
· Operational costs doubled, capital costs ignored by Labor
· Fares to rise 22% to fund Labor’s latest bungled transport promise
Daniel Andrews and Labor have once again shown Victorians that they can’t manage money or major projects, with their latest unfunded transport promise expected to hike public transport fares by 22 per cent, Treasurer
Michael O’Brien said today.
In news reports this week, Opposition Leader Daniel Andrews claimed his weekend transport promise was costed at $50 million.
“[It] may well be significantly less than that”, Mr Andrews said (Nine news, 20 January 2014).
However, information from Public Transport Victoria (PTV) and the Department of Justice reveals that Labor’s costings are completely wrong.
“Daniel Andrews’ latest election thought-bubble is one that he cannot pay for, so Victorian transport users will be left with the bill,” Mr O’Brien said.
Mr O’Brien said operating costs for Labor’s proposal would be $102.2 million; more than double Labor’s claim.
“This blow out alone would cause a 14.7 per cent across the board fare increase to all PTV passengers to pay for Labor’s promise,” Mr O’Brien said.
In addition, disruption to maintenance schedules caused by 24 hour weekend train operations would necessitate additional rolling stock at a capital cost of $192 million.
“Labor has forgotten that train maintenance occurs during non-operational periods. Their policy would require more trains beyond what the Coalition Government is already delivering,” Mr O’Brien said.
“Even allowing for capital costs to be spread over 4 years, would require a further annual fare increase of 7.3 per cent.
“Victorian public transport users face a fare hike of 22 per cent to pay for Labor’s unfunded promises. Victorian families can’t afford Daniel Andrews and Labor,” Mr O’Brien said.
“This shows that Labor has learnt nothing from their previous major project disasters such as Myki and the desalination plant.”