NSW:Millions wasted on Sydney project: A-G

AAP General News (Australia)
12-02-2010
NSW:Millions wasted on Sydney project: A-G

SYDNEY, Dec 2 AAP - The NSW Auditor-General says $356 million was wasted on the Sydney
Metro transport project, which was scrapped by the state government.

But the debacle had not only cost taxpayers financially, it also meant other transport
projects weren't a priority.

In a critical assessment of the wastage incurred, Auditor-General Peter Achterstraat
on Thursday called on the government to review how the process was handled to avoid a
recurrence.

Mr Achterstraat said of the $412 million spent on the scrapped project to June 30 this
year, $356 million "does not appear to be of any future benefit to New South Wales".

"The cost to New South Wales is not just in dollar terms, but also in time delays to
other transport priorities as scarce resources are diverted to projects that do not proceed
to completion," he said in a report into the state's transport agencies.

"In my view, the New South Wales government should review and identify lessons learnt
from the metro project," he said.

"Such a review should explore whether the government's decision-making processes minimise
future risks of spending taxpayers' money on projects which do not proceed."

The multi-billion dollar CBD and Western metro projects were scrapped by NSW Premier
Kristina Keneally in February.

During a 2009/10 budget estimates hearing last month, the former head of the Sydney
Metro Authority Rodd Staples said the total cost of the abandoned CBD and West metro projects
was about $419 million at the end of October.

About $96 million has been paid in compensation to large contractors and small businesses
affected by the project's axing.

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KEYWORD: TRANSPORT NSW

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