19 March 2025

Assembly calls on government to reveal estimated cost of light rail Stage 2B, but there's a catch

| Ian Bushnell
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What light rail to Woden will look like on Adelaide Avenue crossing Hopetoun Circuit. Image: ACT Government.

The ACT Government has 30 days to produce the current estimated cost of light rail Stage 2B to Woden after the Legislative Assembly agreed to a motion from Canberra Liberals leader Leanne Castley.

But it has ruled out releasing any commercially sensitive information.

The government supported the motion, knowing it did not have the numbers to oppose it, but did secure an extra 16 days to give it more time to produce all documents covered by the motion, which also included other aspects of the overall light rail project.

Chief Minister Andrew Barr and Transport Minister Chris Steel have consistently refused to provide a figure for the cost of running light rail from Commonwealth Park to Woden, saying the government did not want to show its hand ahead of any contract negotiations.

READ ALSO New Woden bus depot heralds the arrival of a new timetable

The Liberals have also been calling for the business case to be published, but it is still to be finalised while the approval process is being processed.

A government spokesperson said late on Wednesday (19 March) that commercially sensitive information would not be released and that the Canberra Liberals had secured largely publicly available information by wasting the Legislative Assembly’s time at a cost to the ACT taxpayer.

“The ACT Government has always detailed the costs of non-commercially sensitive information in relation to the delivery and procurement on all stages of light rail,” the spokesperson said.

“This has included business cases on light rail stage 1, light rail stage 2A, and their associated contracts. The Liberals have noted themselves that a business case has not been developed for stage 2B.

“The ACT Government has a responsibility to protect ACT taxpayers from the Canberra Liberals’ attempts to damage our commercial negotiating positions on large-scale infrastructure projects.”

The aim of Ms Castley’s motion was not just to secure a cost figure for Stage 2B but also to determine how much the overall light rail project to date has cost the Territory and whether the benefits stack up.

It requires the government to publish any business cases (Stage 1 and Stage 2A have been published), including any draft indicative business case or evaluation for Stage 2B, and post-implementation reviews.

It seeks actual capital expenditure on light rail, including all planning, design and construction costs, and Commonwealth contributions to light rail capital expenditure for each financial year (2013-2014 to 2023-2024).

The motion also compels the publication of the government’s schedule for each and future stages of light rail.

Leanne Castley MLA.

Canberra Liberals Leader Leanne Castley: “People have a right to know where we stand before we take the next step, a step that could well cost us more than $5 billion or more than $10,000 per Canberran.” Photo: Thomas Lucraft.

Ms Castley told the Assembly on Wednesday that her party had been seeking this information for more than a decade and had been frustrated at every turn.

“People have a right to know where we stand before we take the next step, a step that could well cost us more than $5 billion or more than $10,000 per Canberran,” she said.

“And members have a right to know to fully understand the economics of this investment before we are asked to vote on appropriations and any legislation to support the project.”

Ms Castley said proceeding with Stage 2B funding would be one the most crucial decisions the Assembly had to take in the context of the ACT’s budget situation.

“We have a budget that is deeply in deficit, deeply in debt, and continues to deteriorate,” she said.

“We have a government that insists on proceeding with a massive investment project that may not actually yield value for money.”

While the Greens and Independent Thomas Emerson do not share the Liberals’ opposition to light rail, they supported the motion in the name of transparency, reflecting the changed dynamics in the Assembly.

The Greens also look to using a similar procedure to extract the cost of major road projects in the Territory.

READ ALSO NEC wanted a slower transition to MyWay+ but government said no, inquiry told

Transport Minister Chris Steel told the Assembly that the Liberals had opposed light rail from the beginning, changed their minds, and now did not support Stage 2A, which is now under construction, and Stage 2B, which it campaigned against in the last election.

Mr Steel said Stage 2A would unlock further investment in the CBD, and Stage 2B would deliver significant benefits for a growing city.

“Election after election has shown that Canberrans support light rail and want it to be expanded, and we will continue to engage in good faith, with the standing order process for producing documents in this motion, and we’ll continue to be transparent, as we have on each stage of the light rail projects by, for example, publishing business cases Stage 1 and Stage 2A,” he said.

The government will need to produce the required documents by 17 April.

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This is nothing more than a vanity project. There is no business case that justifies throwing more good money after bad. Even Canberra’s Karens know modern electric buses can do the same job, faster and more flexibly for a fraction of the price. This is a sad little man’s attempt to put on his ‘big boy’ pants and pretend he’s a real minister… and generations will pay for it.

Alas, a realist who is unaware that a bus does not have the same carrying capacity as a light rail, which is why light rails are a popular choice in many parts of the world.

The Barr Government must be the least transparent of all Australian governments.

HiddenDragon7:40 pm 20 Mar 25

“While the Greens and Independent Thomas Emerson do not share the Liberals’ opposition to light rail, they supported the motion in the name of transparency, reflecting the changed dynamics in the Assembly.”

Good – this is a nice change from the protection racket which operated in previous Assemblies.

Even though it may not feel like it at present, the Greens and Emerson are doing Labor a favour. Sooner or later, they are going to need a truly robust case (i.e. more than the generic blather which is used to spruik every tram/light rail project here and overseas) to put to a federal government when they have their hands out for the big bucks which will be needed for Stage 2B.

Leon Arundell1:59 pm 20 Mar 25

Audit Report 8 of 2021 (link below) revealed that, in its 2019 “City to Woden Light Rail: Stage 2A” business case, the government estimated that Stage 2A would cost $296 million (including the cost of wire-free operation, but not including the cost of raising London Circuit) and that Stage 2B would cost $905 million. The Transport Minister then signed a $577 million contract for Stage 2A. https://www.audit.act.gov.au/__data/assets/pdf_file/0005/1859630/Report-No.8-of-2021-Canberra-Light-Rail-Stage-2A-Economic-Analysis.pdf

Felix the Cat6:14 pm 20 Mar 25

I think there are more costs involved such as the purchase of more LR vehicles (ones that are battery powered to through the Parliamentary Triangle) and also I think the Mitchell depot may have been/planning to be renovated/expanded to accommodate more LR vehicles.
There would be other ongoing costs such as staff (drivers and whatever the staff at tram stops meeting and greeting people are called), mechanics to maintain the LR vehicles, cleaners for the LR vehicles, gardening staff/contractors to maintain the flora near the tram lines, power and heating for the LR maintenance depot and lighting for the tram stops and of course the cost of MyWay ticketing system (though this cost can be proportioned across buses as well)

The Chief Minister doth protest too much, methinks.

The Liberals are slow learners, having lost 4 consecutive elections at which light rail has been a key issue. Why they start campaigning against it this early in the legislative assembly term I don’t know. It’s not possible to cost stage 2B, let alone develop a business case, till it has been designed, and that process has only begun relatively recently. By the end of March a full environmental impact statement is expected to be released. I don’t know whether that will include both the ACT government’s preferred route via Commonwealth Ave, State Circle east and Adelaide Ave or the Barton dogleg as well. I hope it will be just the former, but when dealing with the precious souls at the National Capital Authority who don’t have enough to do to occupy their time it may be wise to pander to them.

Mark,
That comment shows a complete lack of engineering knowledge.

It is perfectly possible to provide estimates for early stage projects and provide ranges based on identified risks. They aren’t putting together a spaceship.

This is done for almost all major projects.

Funny that even the government knows this when they conveniently released early cost estimates for a city stadium prior to the election last year.

But even if we say your comment is correct, what you are actually saying is that the government has committed to a project without understanding how much it will cost, what other options are available and what type of benefits each could provide.

Not really a flattering position to put forward.

Hilarious how asking how much it costs draws so much ire. There should never be this much resistance to telling taxpayers how much of their money is being spent on an infrastructure project.

I don’t think the ACT government has committed to the project. IIRC, the Transport Minister Chris Steel has conceded this, saying a costed business case will be developed this term, which the government expects to take to take to an election.

I suspect there are considerable cost/benefit differences between the two routes through the Parliamentary Triangle and Barton. But more critical is the expected federal funding contribution, which assumes even greater importance given the rapidly expanding federal workforce in Barton over the next 5-6 years, with another 8-10k staff, including 5k in the national security precinct who will never work from home.

But my main point is about the timing of the Liberals move, which appears to confirm their irrelevance. Yesterday’s stunt will be forgotten when the EIS is released in the next 2 weeks. What the Liberals, you, I think is irrelevant. The ACT and federal government have allocated $90 million (and contracted AECOM) to design and get planning approvals for stage 2B between now and the next ACT election. The only way I can see that process being aborted is with the election of a Dutton government, and it’s by no means certain that the federal Liberals will rip up the design contract.

The people of Canberra are slow learners in sticking with a government delivering an expensive project that will provide slower public transport for everyone south of the lake, while at the same time failing in the delivery of first class healthcare and education and sending the ACT broke.

As for costs, estimates for the next stage of Gold Coast light rail were made available a couple of years ago. Taking the mid range estimates for its per km construction cost and adding on the cost of a bridge over a lake suggest our stage 2B could easily cost $4b.

Something else to consider is the huge housing shortage the country is not catching up on. Workers on major government projects could instead be building housing for people. There are numerous commentators citing the amount of government infrastructure under construction as a reason why we’re unable to build enough homes for people to live in.

Mark,
“I don’t think the ACT government has committed to the project”

Cmon now, seriously? Are you suggesting their election policy and ongoing statements are a lie or at best misleading?

They have not provided caveats to those policy statements and I’m not aware of any statements by the minister like you’re suggesting. Can you link them?

“I suspect there are considerable cost/benefit differences between the two routes through the Parliamentary Triangle and Barton”

I agree. Not sure how you think this changes the discussion are estimates.

“But more critical is the expected federal funding contribution”

Once again, doesn’t change cost estimates nor cost-benefit ratios. It only changes funding source.

The rest of your comment is just partisan political guff, which is irrelevant. I’m interested in the merits of the project, the politics far less so.

A transparent government would be far more forthcoming with the public about the supporting information for the work involved in assessing the best option and how it will benefit the city.

‘chewy14’ I don’t have a link to Minister Steel’s statement saying before the election that a costed business case would be developed this term, which the government would then take to take to an election. But I’m sure I heard it correctly, and have since confirmed it with another public transport advocate. I was disappointed and surprised (perhaps not entirely given his apparent willingness to string out the project for political purposes). Misleading perhaps though at the lesser end of the scale in an election campaign. He could argue that you’re not committed until you sign a contract.

I take your point about the source of funding not having a direct impact on the cost, though in Steel’s position I’d be certainly linking the project cost and how it’s funded to the considerable costs being imposed by the federal authorities including the NCA on spurious heritage and environmental grounds.

I don’t understand your claim that the rest of my comment was ‘partisan political guff’. The expanding Barton employment is real, with office projects for 9k workers already under construction (ATO, 2.5k, DFAT 1.5k, national security precinct 5 k). Before the last election I managed to get Mark Parton, the Liberal spokesperson, to concede that a busway on Commonwealth Ave was not viable. I also managed to convince Thomas Emerson to support continuation of the design and approval process on the grounds that a contract for most of this work has been let with the Commonwealth paying half. When I put it respectfully to Parton at a public meeting that the Liberals should take a similar approach unless they want to go back to promising to rip up contracts, he didn’t have a response.

A final point. Don’t bother coming back at me with implicit claims about your superior engineering knowledge or my partisan position without using your real name. I have a reputation in my work and public life for being straight, and I’m happy to attach my real name. You might be more convincing if you did the same.

Small correction to Garfield, the tram means slower public transport for everyone who doesn’t live AND work on the tram line, because everyone else has to wait at an interchange.

Mark,
Your last comment:
“But my main point is about the timing of the Liberals move, which appears to confirm their irrelevance”.

This is just partisan politics unrelated to the merits of the project, nor what the role of an opposition is.

The Liberals actually went to the 2020 election with a policy of support for Light rail contingent on the completion of a robust business case and they had a swing against them.

The Liberals electoral problems go far deeper than Light Rail.

Holding the government to account and pushing for transparency is one of their main roles.

“He could argue that you’re not committed until you sign a contract.”

Once again, this is attempting to play semantics when not one of their public statements has suggested that any new information would change their mind on delivering the project.

Funnily, as above it’s similar to what the Liberals took to the 2020 election and were criticised by the ALP for not being committed enough.

Their stated committment has even used this as part of the rationale behind splitting stage 2 into 2 parts, even though the business case for Stage 2A clearly doesn’t make sense from an infrastructure perspective. With a cost benefit ratio that will see a return of mere cents in the dollar.

But once again, none of this is relevant to the point around cost estimation which is something done very early for all major projects because it’s key to being able to assess the scale of the problem and potential solutions.

The idea that the government don’t have or can’t prepare a cost estimate for a project at this stage of development is simply false and is easily countered by numerous other projects for which this government have prepared and released draft cost estimates early in project development.

There are defined industry standards as to how it is done, hell Infrastructure Australia even release estimation guidelines on this exact topic.

As for your last point, you are on a website which does not require individual identification allowing freer discussion.

Your points should be able to stand on their merits.

GrumpyGrandpa11:15 am 21 Mar 25

Hello Mark,
Yes have had four consecutive ALP or ALP-Greens governments, and in my opinion, it’s quite likely that we will have more, simply based on the nature of this city.

The thing about elections, however, is that we vote for a party. We don’t vote for individual policies. It’s a job lot. It’s because we’d prefer this lot, in preference to the other lot.

To suggest that voters voted for LR, is equivalent to saying voters voted for a blowout in the ACT health budget.

A business case, to be realistic, has to look at what the Return on Investment is, and I hope this will be included. It would also be helpful to have metrics that count how many cars won’t need to be on the road per hour, which is a saving on current and future car infrastructure, which is subsidised by those who don’t drive (about 50% of the population of Canberra). Another fave of those who are ideologically opposed to public transport is to highlight how one part of the 21st century network being built only serves one part of the whole Canberra community. Once the east-west network starts to be built we’ll see light rail being considered a jewel of the city, much as Melbourne sees its own trams. But don’t think I’m not without interest. Section 2A costs needs some better explaining than we’ve received.

A business case to be realistic, has to outline what other options have been considered and how they were assessed.

But we all know that won’t be happening.

Even those Canberrans who don’t drive are entirely dependent on the road system for the delivery of food and other goods to shops or our doors; for tradies to turn up and carry out repairs and maintenance on homes; and indeed for public transport itself, which even if the vision of light rail across Canberra ever gets realised will still see the majority of public transport users needing to get on a bus for part if not all of their journey. The idea that people who don’t drive, many of whom are children or elderly and are not taxpayers, are subsidising road infrastructure is fanciful to the extreme.

Currently about 1.5% of the populace use LR on any given day. It’s also consuming about 1.5% of the budget once the extra costs borne by the taxpayer plus the interest are added to the annual availability payments. Therefore one way to look at it is that every last dollar of LR user’s share of the budget is spent on LR and everyone else is covering the entire cost of their healthcare, education, policing and the roads which bring their food and services to them. It’s great for those for whom LR has provided a slightly faster public transport journey, which excludes those who used to have direct buses from their Gungahlin suburbs to the city centre, but its the rawest of deals for everyone else.

Any figure they come up with will be pure BS. How can they make an accurate estimate of costs if they still haven’t figured out how to get across the lake, around Parliament House, up onto Adelaide Avenue, along Adelaide Avenue and then into the Woden Town Centre to the new interchange.

The resistance to just telling us how much it costs tells you all you need to know.

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