A warning for Auckland out of Australia

 

congressional-train-wreck

The SMH reports on massive public transport initiatives blowing their budgets:

Transport projects across the country have blown out in cost by at least $28 billion in the past 15 years, according to an independent think-tank.

And the main cause of the cost increases is the tendency of politicians of all persuasions to make promises about road or rail projects before they have been assessed, says the Grattan Institute report, to be released on Monday.

“When ministers and oppositions announced a new highway before a formal funding commitment, these early cost estimates often turn out to be spectacularly wrong,” said the transport program director at the Grattan Institute, Marion Terrill.

Light rail to Auckland Airport down Dominion Road? Phil Goff is a big fan of that billion dollar boondoggle.

The report used an investment monitor by accountancy firm Deloitte to compare the early projected cost of 836 transport projects over the past 15 years with their eventual tab.?It found that the largest cost over-runs occurred when the scope of a project was announced early by a politician.

“Although only 32 per cent of projects were announced early, these projects led to 74 per cent of the value of cost overruns over the past 15 years,” the report says.

“Prematurely announced projects need larger cost upgrades not just early on, but throughout their funding approval and construction phases,” it says.

How do you know when a?politician is lying? When their lips move.

Light Rail, a Waterfront Stadium, moving the Port…all boondoggles pre-announced by Phil Goff. Then there is Len Brown’s Central Rail Loop. The bill for that will be enormous.

 

-SMH

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