The Guardian 28 May, 2008
Corruption allegations dog NSW Labor
Peter Mac
There are new reports of undeclared donations to the Labor government in NSW, as well as revelations about the disastrous impact of the proposed changes to the state’s planning laws, and disclosures about inaccurate estimates for construction of the proposed new metro rail lines.
Research carried out by the NSW Greens has shown a yawning gap in ministerial approvals for major new development proposals from companies which made contributions to the state branch of the ALP, compared to those which did not.
Under Section 3a of the current NSW planning legislation the Planning Minister Frank Sartor can make himself the sole consent authority for major projects which the government deems to be of "state significance", taking control for the development away from the local council.
According to the Greens, over the last three years the Iemma Government approved thirteen development applications of "state significance" from companies which made major donations, but rejected 28 applications from companies which had made no contributions at all.
The Greens’ allegations have been referred back to the NSW Independent Commission Against Corruption (ICAC). The NSW Election Funding Authority has also referred to the Crown Solicitor 800 cases in which political parties have apparently failed to acknowledge receipt of some $8 million worth of election donations, and is considering referring on another 900 cases.
The Greens’ Sylvia Hale has described the current situation as "a systemic corruption of the planning system in NSW".
Metro in the mire
Like the proposed sell-off of the NSW electricity system, the Iemma government’s proposed new Metro rail system is mired by its lack of consideration for the interests of the state’s taxpayers, and its dedication to the interests of the major corporations involved in the proposal.
The construction of the Metro line replaced an earlier proposal to upgrade the existing rail system and construct a new line, at a cost of $8 billion. The government’s $12.5 billion estimate for construction of the Metro line does not appear to have included $300 million needed to purchase extra land. Moreover, extra costs for the project in the current and next financial years come to $711 million, so the project cost already appear to be underestimated by a around $1 billion.
Constructing and running just one new metro line would swallow up all the funds previously allocated to upgrade the existing lines, and the government is already talking about constructing another two Metro systems, one to Parramatta, and the other to the eastern beaches.
Moreover, the Metro line would almost certainly be privately operated, imposing a huge extra cost on passengers. Major transport infrastructure proposals require years of careful consideration and planning, but consideration of the new Metro line project only began last September. The government’s documentation for consideration of the project, obtained recently by the state opposition, fits into a single folder and includes a large quantity of press clippings and media releases.
Dr David Thorp, the NSW Treasury’s principal adviser on transport and infrastructure, has openly questioned the government’s announced project construction date of 2010. The government has stated that part of the line would be operating by 2015, and it would be fully operational by 2020.
A leaked email from another transport official, Rodd Staples, has also criticised the government’s statement that the new line could carry 38,000 passengers per hour, and that two such lines could carry 70,000. Staples has claimed that only one system has been identified which might possibly carry about 65,000 passengers on two lines.
The government has claimed that the first two Metro lines could carry almost as much as the existing six-line system. However, the Metro system would only cover a fraction of the area served by the existing system, which is likely to face a lingering financial death if the Metro lines are constructed, leaving a huge proportion of Sydney’s passengers without an adequate public transport system.?J