Barangaroo terminal budget blowout attacked
A $16 million blowout in the projected cost of moving the Barangaroo cruise ship terminal was proof that the facility should stay put, said politicians and community groups last week.Opponents of the terminal’s relocation have leapt on the release of the NSW Auditor-General’s performance audit, which exposed a 35 per cent increase in the expected cost of the project.
The independent report claimed moving the terminal to White Bay would now cost $62 million, up from the original estimate of $46 million.
The revised figure covered the expense of building a new access road at White Bay, which would become home to one of Sydney’s busiest ports if the terminal was moved there.
The audit warned of additional blowouts to the Barangaroo Delivery Authority’s budget in the future, which taxpayers would be forced to cover.
State Member for Balmain Jamie Parker said the Government should immediately cancel the plan.
“Moving the cruise ship terminal to White Bay is not supported by the industry, tourism bodies, local councils or residents,” said Mr Parker, the former Leichhardt Mayor.
“This latest blowout should see the end of the proposed transfer of the terminal.”
Mr Parker said the Auditor-General’s report highlighted the risks inherent in the value-based funding arrangements made with developers as part of the Barangaroo precinct redevelopment.
Revenue was dependent on contributions made by developers, which in turn were dependent on the future market value of properties.
If property values fell then developer contributions would also fall, increasing the already ballooning cost of the White Bay Cruise Terminal.
“The residents of White Bay are already facing significant costs to their quality of living as a result of this proposal and this enormous price tag is an unacceptable extra burden,” Mr Parker said.
“This money should be spent on supplying services that the community actually wants and needs.”
In addition to the blowout in the cost of relocating the terminal, the audit has highlighted the strain the Barangaroo redevelopment would inflict on the city’s transportation network.
An extra 13,000 commuters a day are expected to pass through Wynyard station on the way to Barangaroo, which would become home to 23,000 workers and residents when completed in 2023.
State Planning and Infrastructure Minister Brad Hazzard blamed the previous Labor Government for the shortfalls identified in the report.
“It is very concerning that the former Labor Government failed to adequately focus on transport arrangements, the public domain, and the risks associated with developer contribution forecasts,” Mr Hazzard said.
“I will be working with my colleagues, including Transport Minister Gladys Berejiklian to address the issues necessary to make the outcome of Barangaroo the very best.“
But the Australians for Sustainable Development (AfSD) alliance stated that Lend Lease, the developer of the Barangaroo South precinct, had lobbied cabinet ministers in order to override the audit’s recommendations.
“AfSD is thankful that our new Premier and Minister for Planning are listening to community voices,” said group spokewoman Marcelle Hoff, Sydney’s Deputy Mayor.
“Now that we’ve achieved a review of Barangaroo which will do the right thing and take community concerns into account, we’re seeing a backlash from developers that are used to getting very special treatment.
“The Planning Minister (Mr Hazzard) instigated the process for an independent review into Barangaroo just a few weeks ago, yet Lend Lease’s staff have shown they would rather manipulate than co-operate.”
