The Guardian 7 June, 2006
Call to come clean on tunnel debacle
The NSW Government has announced the re-opening of street lanes and removal of motorist restrictions from 13 of the roads where access had been cut in order to force people to use the private Cross City Tunnel tollway. The closures were made under the contract between the Cross City Motorway consortium that operates the tunnel and the state’s Roads and Traffic Authority (RTA).
It created massive congestion and disruption to traffic flows in the city and are bankrupting small businesses around the city’s William Street entry point.
At $3.56 a trip, motorists were not surprisingly avoiding it.
In discussions with the Iemma Government over the toll to be charged — for a reduction to $2.90 for 18 months, then $3.40 for 12 months then $3.67 — the consortium demanded $144 million in compensation. It has now relented and wants $96 million of taxpayers’ money. The Government has offered $20 million.
A period of free usage failed to convince the public. Now a second attempt to hook motorists — three months at half-toll — ended at midnight last Monday. Cross City raised it to $3.50 — a whopping six cent reduction!
The Greens are calling on Morris Iemma to honour his Government’s commitment to "reclaim those roads for the public" by immediately reversing all above ground road changes associated with the Cross City Tunnel deal.
The Greens said they have "clear legal advice" that throws into doubt the validity of the tunnel contract. "If this ends up in court the contract may not stand up to legal scrutiny and there may be no basis for a claim against the Government", said Greens MP Lee Rhiannon.
The Greens’ legal advice says there is evidence that the RTA "acted beyond power" and therefore the agreement between the RTA and the consortium may be unenforceable.
"Premier Iemma has still not come clean with the public over the tunnel debacle", said Lee Rhiannon. "He has committed to reversing 13 above ground road changes, but there are 45 changes he can make that incur no financial penalty and will not impact on public transport."
She pointed out that 10 months of operation has further demonstrated that the tunnel is an ill-conceived project.
"Premier Iemma should admit the Government negotiated a bad deal for the public and make amends by reversing all above ground changes now."