Exactly how much money is too much for a tram?

capital metro

ALISTAIR Coe says the ACT government should name the cost at which it will abandon its plans for light rail.

“Chief Minister Katy Gallagher has drawn a line in the sand on the Gungahlin tram project, saying cabinet will not support a cost substantially beyond $614 million, adjusted for today’s dollars,” Alistair said.

“The government has said that the $614m price tag would be increased with inflation. However, based on what year will the figure be inflated?” Mr Coe said.

    Base Year 2010: “Well the government has indicated that we are tracking consistent with an adjusted figure from the 2010 projection of just over $600 million.” (Simon Corbell, ABC 666, 1 July 2014)

    Base Year 2011: “I would have to check my records but I think it would be in the 2011-12 year.” (Katy Gallagher, Hansard, 6 August 2014)

    Base Year 2012: $614.4m in the ‘revised cost estimate’ published in Gungahlin to City Transit Corridor Project Update 3, September 2013

Using inflation:

    If base year is 2010: the Chief Minister’s ‘line in the sand’ is $678m

    If base year is 2011: the Chief Minister’s ‘line in the sand’ is $655m

    If base year is 2012: the Chief Minister’s ‘line in the sand’ is $647m

“Which is it? The Chief Minister should clarify at what point the cost of the tram will be abandoned,” Mr Coe concluded.

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