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Northwest rail project - Coalition’s M2 compo clause bungle
Sunday 28 February 2010
Commenting on the clause in the M2 motorway contract that could result in compensation being paid to operator, Transurban, Greens MP and transport spokesperson Lee Rhiannon said the northwest rail line is an essential piece of infrastructure that should be fast tracked not held up because of a poordecision by the Coalition when they were in government.
"The former Coalition government in the early 1990s should never have agreed to the clause in the M2 contract that allows the motorway operators to claim compensation if their profits are impacted by a nearby public transport project," Ms Rhiannon said.
"If the NSW government has to pay compensation because of a poor motorway decision by a previous Coalition government that should not be used as a reason to prevent construction of the northwest rail project.
"The lesson does have to be learnt about the pitfalls of private motorway projects. The big parties cannot be trusted to implement a comprehensive public transport system.
"Transurban should show some decency to the travelling public and state that they will not activate the compensation clause in their contract.
"The public would be forced to wear the cost if Transurban used the compensation provision in their contract.
"That clause was foolishly designed to protect the profits of the M2 operators.
"The Labor government dumped the northwest project in 2008 only to reannounce it again in its latest Sydney transport blueprint.
"Pressure needs to be on the government to fast track this project," Ms Rhiannon said.
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