media release

Is O-Bahn extension good value for money?

The State Liberals are calling on the Weatherill Labor Government to release the cost benefit analysis of the proposed extension of the O-Bahn for independent scrutiny.

"Too often the Weatherill Labor Government has over invested in projects leaving taxpayers facing a massive debt and ballooning interest bill when a more modest project would have done the job at a much lower cost," said State Liberal Leader in the Legislative Council David Ridgway.

"Labor’s decision to double the size of the redundant desalination plant is but one example of South Australians paying a very high price for the economic folly of the Labor Government.

"The $16.5 million Wayville station that carries an annual interest bill of $700,000 that attracts a handful of customers on a daily basis is another project where bigger wasn’t better.

"In the absence of an Infrastructure SA assessing the economic value of major government projects, the cost benefit analysis on the O-Bahn needs to be released for detailed analysis.

"Too much doubt has been created by the Labor Government’s ever changing story regarding the O-Bahn extension for the Government to continue to conceal the economic assessment of this project.

"In 2009, the State Labor Government announced it would be extending the O-Bahn into the CBD at a cost of $61 million.

"The Labor Government claimed that $61 million would have saved O-Bahn commuters 8 minutes on their journey but the project was subsequently scrapped.

"Now the Weatherill Labor Government is intending to invest $160 million in the O-Bahn extension whilst claiming it will save commuters just 4 minutes travel time.

"In effect we are now being asked to accept the Weatherill Government’s word that a project costing $100 million more and delivering half the projected reduction in travel time is good value for money.

"We need more than the Minister’s word that this is good value."

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