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Category: Rail Transport / Government and Politics

Light rail plan axed due to cost blowouts, says WA Treasurer

Wednesday, 22 Jun 2016 11:11:19 | Andrew O'Connor

Dr Nahan said rising costs meant binning the MAX project was appropriate. (ABC News: Andrew O'Connor)

WA Treasurer Mike Nahan has defended the Government's decision to axe the MAX Light Rail project, blaming escalating costs for making it unviable.

The Barnett Government had promised to build the $1.8 billion light rail link to Mirrabooka as it confronted Labor's Metronet rail proposal during the 2013 election campaign.

It has since deferred and reviewed the project, considering other options including rapid transit buses and heavy rail.

Yesterday Transport Minister Dean Nalder confirmed the Government's new transport plan did not include the project, a decision Dr Nahan supported.

"As a Treasurer, do I think we did the right thing by backing out of MAX? You better believe it," Dr Nahan said.

"We have invested billions in transport but we have to invest it where it's needed most.

"And if a project like MAX no longer stacks up, we'll take the political heat for it but that's the right think to do in redirecting it to other projects that are higher priority."

'Flexibility needed' in transport mix

Dr Nahan said the viability of the light rail plan became compromised when the Abbott government made it clear there would be no Commonwealth funding, and project planners identified other infrastructure costs.

He said the project was "pushed very strongly" by the Public Transport Authority (PTA), but initial planning did not reflect the full range of costs.

"The trouble is, as we looked at it, it became more and more costly because of the infrastructure needs," he said.

"You had to replace water pipes, electricity facilities, roads. It started blowing out in terms of the cost.

"The PTA pushed it very strongly, and we accepted it. We went to the last election with a promise to build MAX Light Rail. No doubt about that. PTA just provided it's advice.

"But over the next two or three years, as we looked at it, it became more and more costly because of the infrastructure underneath."

Dr Nahan said governments needed to be flexible in the way they met the transport requirements of communities.

He cited the Government's abandoned promise to build a rail line to Ellenbrook as an example of deferring a project that, on the Government's data, was not justified.

"Government's have to be careful to not lock in during an election campaign, projects that need to be varied or should not be built," he said.

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