Call for govt to come clean on CBD Metro compensation

(SMH, page 7, http://bit.ly/9afrVY)

Secret government documents released on an Upper House motion reveal Sydney Metro planed to lease the site for the Balmain Metro Station from Tigers Leagues Club and its partner Rozelle Village for $26 million, and that the companies involved "would be liable to litigate against Sydney Metro if the agreement was not executed".

"It is typical of this government that the true story of the failed management of a major infrastructure project is not told until secret documents are forced into the open," Ms Rhiannon said.

"Balmain Leagues Club and the developers of its Rozelle site itself are some of many who will be lining up, demanding compensation as a result of this project having being pulled.

"The theme appearing from these documents is that the bureacrats were continuing to do their job developing the Metro plans while also responding to the the contradictory messages from their political bosses about the future of the project.

"Around the time that reassurances are given to the Club that the Metro is on track, the government had requested legal advice on the implications of cancelling the project.

"While the government was advised that the agreements were non-binding they were informed that they could be 'liable to compensate RV for loss of profit and incidental cost'.

"The government must now come clean on what it estimates the final compensation bill for this failed project will be, not hide behind claims of commercial-in-confidence.

"With the project now dead in the water, the Premier should direct that all 45 boxes of documents claimed as privileged be released for public scrutiny.

"What these documents reveal is that the government is comfortable distorting the truth if it helps them out on the day," Ms Rhiannon said.

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