Light rail may have been a little late but the final bill is less than expected

Leo Low just read treasury figures it’s there

A white elephant that is full of people?

Low not up to me to educate you !!!

Trish Roberts sadly lots of Michell businesses complained about it. While others wanted it. Looks like naysayers won. Hopefully Mitchell gets it built in the future.

Trish Roberts not in our lifetime

Gerard Dwyer Yes, Gerard, earlier this year I had to make 4 trips to Mitchell. I then expected there would be a stop. But no.

Annie Andcooper Pike it’s actually looking pretty nice now? I saw the full length in both directions yesterday, it’s really really close to done.

I’m all for health spending, but our hospitals are the best funded in Australia, so clearly the problems they have there are probably not funding related and perhaps how the money is being spent.

Um no just look how understaffed they are and how nurses are run off their feet… Obviously you haven’t been a patient there or if you have not for a long period.

Francisco, I agree that the hospitals are understaffed and the nurses run off their feet. That just highlights what Justin said. Where is the money going? Our hospitals in the ACT get more funding than elsewhere in Australia. There is no excuse for understaffing. Perhaps all hospitals are under funded. I know that the Commonwealth contribution to health funding has reduced in real terms.

The construction cost is under budget. the running costs are $300 odd million over 20 years, which is where the total cost of ~1 billion comes from.

Justin Watson thanks but that doesn’t answer the question. My understanding was the lump sum payment once it was operational was $375m and then there were availability payments averaging $60-70m p.a. for 20 years, being part interest on the construction cost and part operating subsidy. My question still stands as to where the saving to the taxpayer arises. Is there a reduced lump sum payment or are the availability payments reduced?

Not everyone agrees. My useful bus from Civic to my family in Palmerston no longer exists. As an older person with health issues, no car (because I USED to believe in public transport), my transport routes are reduced to about 25% of what they used to be.

Trish Roberts you now have these options 👍 Services to Palmerston have not been reduced 🚌

Martin Miller yeah, a yearly cost which is normal for a support contract. The actual build contract is a fixed price that has an end point. Not making this distinction is misleading and a poor way to criticise the project

Grant Robertson not really the consortium will be paid this as part of the overall contract for theproject. While construction is complete the ongoing running costs will be an ongoing cost. Until it is paid off in 20 years time.

Martin Miller
Support, not build. Every infrastructure project anywhere, has to have support. Nice try

Not really. If it was a Gov build only. The there wouldn’t have been a 20 year ongoing contractual arrangements. Plus the cost would have been much higher. It’s the maintain cost to the government in the contract. The full cost will be completed in 20 years. Overall cost close to $1 billion. ‘ But as far as taxpayers and the ACT budget are concerned, the relevant figure is $939 million, which is the net present cost of the entire 20-year project – the cost in 2016 dollars of the construction, operations and financing.’ https://www.brisbanetimes.com.au/national/act/tram-project-to-cost-taxpayers-939-million-in-todays-dollars-says-act-government-20160524-gp2nc6.html

Martin Miller that’s more than half the entire Action bus budget per annum… for one 13km route. Ouch!

I’m not sure if the construction costs are paid for at completion or not, but the total cost of the project is around 50 million a year for 20 years. The actual running/support costs are 300 million of 20 years, so about 15 million a year. The total cost works out to be less than 1% of the ACT budget for 20 years. To put it into perspective, we spend over 3 billion a year on health and education every year, they are both well funded, but perhaps not well managed.

Justin Watson As I understand it from the CT article : ‘the consortium would be paid a $375 million lump sum at the end of construction – then a monthly “availability” payment for 20 years. The availability payment averages $64 million a year for 20 years, starting at $47 million in the first 12 months of operations, and reaching about $75 million in 2038.’ So you can say they almost saved one years worth’s of ‘Availability payment’ just 19 more years to go . And this is without Light rail stage 2. Cost ? $1.3 – $1.6 Billion . Hope we get a 50 year repayment for that!

Martin Miller The construction cost is not an upfront cost. The contract was consortium builds and finances the lot. They got a payment of around $375m on completion. Then over 20 years they get the annual payment of $64m (average), which covers the remainder of the construction costs, plus operating costs and a mid life overhaul of the trams. Transport Canberra keeps all fares.

Martin Miller its a lot of money, but its really not in the grand scheme of the budget and the fact the ACT’s budget will also grow over time as more people live here. IF our hospitals were not the highest funded per capita in Australia I’d be far more concerned, but the facts are they are well funded and light rail is not even 1% of the ongoing annual budget. Cities need new infrastructure, we are going to need a new football stadium and I daresay that may be on the 2020 election cards. It is going to cost money, but no city in the world has ever prospered by not spending money on infrastructure.

Justin Watson $1.6 billion is more than 1% of the ACT budget let me tell you. I’m talking about other infrastructure that is much needed for our town centres. I like light rail but the price when BRT can work just as well if not better at a far cheaper cost.

Justin Watson I keep hearing how our hospitals are the best funded in Australia from all the ‘top fans’ on here…so why is there a gent waiting 800 days for elective surgery????