There has been a massive multi-million dollar blowout in the total costs of the tramline extension project from Victoria Square to North Terrace, Shadow Treasurer Rob Lucas said today.
“Information provided by government sources and private sector sources familiar with the engineering costings of the project have confirmed the Labor Government has not properly estimated the cost impact of moving various utility services,” Mr Lucas said.
“This information indicates that, on the current project design, the total costs could blow out by up to 50% of the current $21 million estimate included in the budget forward estimates.”
Mr Lucas said the project would have an impact on electricity, gas, water, communications and IT services provided by a number of companies.
“For example, there are up to 50 east-west electricity distribution lines that cross King William Street that on the Government’s design would have to be dug up and buried at a greater depth,” Mr Lucas said.
“This is also the case for the other utility services.
“Organisations such as Telstra, ETSA Utilities and SA Water were not asked to provide detailed cost estimates when the Government claimed the total cost of the project would be $21m.
“The Opposition has been advised that the Rann Government was given advice before the election that the total cost of the project in fact would blow out beyond the $21m claimed total cost.
“However, due to the potential embarrassment of this information, the Government decided not to reveal before the election that costs would be greater than $21m.
“The Liberal Party has lodged a number of Freedom of Information (FOI) requests to try and establish what the Rann Government is hiding on this critical issue.”