THE ACT Government says its proposed Capital Metro light rail will return over $2 for every dollar spent, in response to the Opposition’s suggestion that ACT taxpayers may foot the entire bill for the project.

Shadow Transport Minister Alistair Coe seized on a comment by Chief Minister Katy Gallagher yesterday that the project is not contingent on funding from the Commonwealth Government, which takes advice on such matters from the independent body Infrastructure Australia.

The Opposition has not committed to support or oppose the light rail project, in the absence of a cost-benefit analysis.

Today the Minister for Environment and Sustainable Development, Simon Corbell, has released figures that show a significant benefit to come from the project, more than double its cost.

“According to Infrastructure Australia’s own costings methodology, the benefit cost ratio for Capital Metro at our medium growth scenario was 2.34; this is similar to, or better than, the benefit cost ratio for other light rail projects going ahead in QLD and NSW,” Mr Corbell said in a statement this morning.

Infrastructure Australia’s methodology generally considers such projects over a 30-year lifespan, with the main economic benefits coming from reduced travel times.

“The Gold Coast light rail project, for example, has a benefit cost ratio of 1.63, and Sydney’s Inner West light rail project between Lilyfield and Dulwich Hill is understood to have a benefit cost ratio of 1.0,” Mr Corbell said.

“A ratio of 2.34 shows that for every dollar spent, there is a return of just over two dollars.”

The minister also disagreed with the conclusions drawn by Mr Coe from Infrastructure Australia’s national report, which was released this week.

Mr Corbell points out that the report did not “rule out” light rail, and that it listed a ‘Canberra Transit Corridor’ project – which simply refers to improving public transport from Civic to Gungahlin – as an early stage infrastructure priority, which means no “the identification or development of the right solution is at an early stage”.

The report did not mention light rail for Canberra anywhere, as Mr Coe said on Tuesday, but did briefly describe the less expensive option of new bus transit lanes along Northbourne Avenue.

“Transforming and integrating the city’s public transport system is a big investment that will deliver benefits to Canberrans, and to the economy, for decades to come,” Mr Corbell said.