The $180m bill to calculate the Inland Rail blow-out
Almost $180 million was paid to consulting firms to estimate the bloated Inland Railroad budget.A departing executive received $317,000 just before half of his shipping route was scrapped.
The federal government scrapped the Inland Rail route north of Parkes in central NSW in early May amid a budget blowout of at least $45.6 billion.
This was almost 10 times the estimated cost put forward in 2015 for the rail corridor originally intended to link Melbourne and Brisbane.
At a budget estimates hearing on Tuesday night, Inland Rail executives were told they had been paid generous packages, including $317,000 for Nick Miller, who steps down as chief executive in mid-2025.
Taxpayers also footed a bill of more than $179 million over three years to consultants who researched the cost and economics of the project.
Interim CEO Fiona McDougall said the report revealing the $45.6 billion blowout was highly technical, taking into account rising labor costs and an extended time frame.
“Contingency and time contribute significantly to the increase in estimated cost,” he said.
Environmental approvals and land acquisition work will continue north of Parkes to ensure the route is protected for any future development.
But Ms McDougall said compensation for regional businesses and workers prepared to support the northern route would be a government decision.
“We care about people in our communities every day. We have staff there, we’ve built long-term relationships, so we care deeply about the people in our communities,” he said.
“As for compensation, that is a matter for the government.”
Meanwhile, the man known as the grandfather of Inland Rail is lobbying Infrastructure Minister Catherine King to keep the dream alive.
Everald Compton, who first floated the idea of an out-of-country freight route in 1996, is determined to see the project move quickly into private hands and had a hopeful meeting with Prime Minister Anthony Albanese on Tuesday.
“I can’t say I signed any documents but it was a very positive meeting,” Mr Compton told AAP in Canberra.
He will now take it to Ms. King to negotiate a potential contract that he wants to finalize within a few weeks.
“I’m 94, man, I can’t hang around,” Mr. Compton said.
Earlier in May, Mr Albanese said he was open to the idea of a private sector operator.
“But the reality is we had to bite the bullet and make a decision based on what the government had in front of them,” he told Newcastle radio radio 2HD.
“This was supposed to be completed within the last decade.”
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
