Victoria must cease semi-secret deals on tolls
The semi-secret deals successive Victorian governments have done with Transurban, one of the world’s biggest toll road companies, are an insult to taxpayers and motorists, who will be paying billions of dollars for decades without any way of knowing if they are getting fair value.
To be sure, a dramatic increase in infrastructure investment is needed, and the Andrews government has garnered community support for getting projects done, but the public must be given sufficient information to assess the investment of their money.
The government’s refusal to release details relating to the $6.7 billion West Gate Tunnel is unjustifiable. It contravenes essential requirements of proper public policy – transparency, accountability and cost-effectiveness.
There was no tender; the project was suggested by Transurban, which is investing $4 billion in return for almost $40 billion in tolls from that project and from an associated extension for a decade of tolling on CityLink. So there is no credible argument that the financial details are subject to commercial or cabinet confidentiality.
The Labor government is repeating an insidious process over which it attacked the Coalition when, on the cusp of the 2014 election, the Napthine government signed a contract with Transurban that needlessly cost taxpayers about $1 billion. Opposition Leader Michael O’Brien, who as treasurer signed the 2014 contract, is decrying Premier Daniel Andrews for the same Transurban transgression. The government has, just like its predecessor, suppressed details of a Transurban transaction.
The hypocrisy surplus is equalled only by the details deficit. The information about the extra costs associated with the West Gate Tunnel came to light only after the Coalition sought analysis from the Parliamentary Budget Office.
Yet Transport Minister Jacinta Allan not only claims nothing new has emerged, but that the government has been straightforward with the community. ‘‘We’ve been very clear for some time now, we’ve been transparent with the way this project was to be delivered, to be funded, and the benefits that it’s going to bring.’’ That is nonsense.
Last August, the Australian competition watchdog put the states on notice about accepting unsolicited bids for toll road projects. The Age has long argued that no government should enter into such opaque deals. Due diligence not only requires meticulous internal analysis, but also unfettered public scrutiny.
Also defying credibility is the claim by Transurban shareholder and state Treasurer Tim Pallas that the tunnel deal sets ‘‘new standards in transparency’’. It was only after the media publicised probity concerns that he finally released the contracts on the last business day of 2017. But they were so heavily redacted they were next to useless.
The government’s former adviser on the original proposal said much information was being concealed, and that the entire contract details should be released. Attempts have been made to block the enabling legislation, but the project, which is already under construction, will ultimately go ahead. It really should be the last of its kind.