News

Greens reveal: there is no business case at all for Roe 8

18th November 2016

 

Greens MLC Lynn MacLaren is gobsmacked after finding out through questions in Parliament that there has been no business case or other financial analysis by the Government into spending $450 million on Roe 8.

“What corporation in the world would spend $450 million on a project without knowing what rate of return, if any they would get?” Ms MacLaren asked.

“I started off investigating the extent that the Government had completed a Gateway Review for Roe 8, which is a proven, cost-effective assurance process required by the WA Department of Finance for all road, rail and port projects costing more than $100 million – and ended up discovering that not only were none of the stages of a Gateway Review done for Roe 8, but there is not even a business case.

“This is extraordinary for such a costly road project.

“I have sought out past senior Government staffers involved in Government procurement for major projects and they share my concerns that Roe 8 is an ‘exceptionally light touch’ in terms of checks and reviews to ensure it won’t be a major loss-making project.

“It’s mind-boggling that this Government would throw $450 million at a road proposal that even the Motor Trades Industry Association vehemently opposes, and which in all likelihood will never provide a net return to the Government.

“It is not just poor governance. It smells of reckless desperation by a Government that fears it is in its last days. No sensible individual or business would ever spend money so carelessly.”

 

Authorised by Lynn MacLaren © 2017

Hon Lynn MacLaren MLC - Member for South Metropolitan Region Legislative Council, Parliament of Western Australia