Opposition Leader Elizabeth Lee says infrastructure projects have been prioritised based on their economic, social and cultural benefits. Photo: Ian Bushnell.
Opposition Leader Elizabeth Lee has defended the cost of the Canberra Liberals’ policy and infrastructure commitments and approach to the budget in the face of Labor claims of “magic pudding” economics and back-of-the-envelope calculations.
Under questioning from reporters with early voting now only a week away, Ms Lee said her party had been upfront and transparent with Canberrans, attaching costs to every campaign commitment.
Ms Lee said the list of promises and costs would go to Treasury for assessment in due course, as was expected of every party.
She said the costings were based on information gathered over the years from budgets, as well as comparative programs and initiatives in different jurisdictions.
“We’ve been relying on a lot of data that’s already out there and have come to a very transparent and open process about how we’ve estimated our costs to be attached to various election commitments,” she said.
“And, of course, Treasury will do their own due diligence.”
Ms Lee said infrastructure projects such as the convention centre ($760 million) and stadium ($800 million) didn’t have to be fully funded by the ACT but could be paid for through a variety of approaches, including public-private partnerships, Commonwealth contributions and offsets through land sales.
The Canberra Liberals had also been clear about projects that they would not be proceeding with, such as Labor’s entertainment pavilion worth about $250 million and light rail Stage 2B, which remains uncosted by Labor but which the Liberals say will run into the billions of dollars.
They say this would free up room in the budget.
“The ACT Labor Greens parties have confirmed that they would like to start construction [of stage2B] in 2028, so you’ve got money allocated for that in the budget in the forward estimates.”
Ms Lee, who has committed to budget repair, refuted the notion that revenue would take a hit under a Liberal government due to its 2.2 per cent rates cap to provide some relief to “gouged” ratepayers, and potential cuts to taxes and charges, such as the Lease Variation Charge and payroll tax.
She said the projected amount from land sales through the land release and housing policy was a very conservative $900 million, “and that doesn’t include the additional revenue from ongoing rates and other charges as well.”
But it’s a figure Chief Minister Andrew Barr described as “magic pudding”.
$90 million has been provisioned in the Budget for Light rail Stage 2B but half of that is Commonwealth money. Image: ACT Government.
Ms Lee said her government would also tackle wasteful spending, without listing specific areas, but citing the $78 million written off in the HR digital procurement and millions spent on the CIT contracts affair and investigation.
“Those are examples that are endemic for this Labor Greens Government,” she said.
“And obviously, as any new government will do, especially one that is coming in after a very long-term current government that has a tendency to waste government money, we will be looking at this very, very, very closely.”
Ms Lee also said the party would prioritise infrastructure projects that would bring the most economic, social and cultural benefits.
She said comparable projects in other cities had been moneyspinners for their communities.
According to one study, the Adelaide Convention Centre had brought in about $200 million in economic benefits in one year, while for the stadium in Parramatta, it was estimated each event generated about a million dollars for the city, Ms Lee said.
However, Labor has prioritised the proposed 2000-seat Lyric Theatre in the city because it believes it has the stronger business case.
“We’ll have more to say on the theatre,” is all Ms Lee would say.
The Liberals have committed to the Northside Hospital, which will cost at least $1 billion.
Labor says the Pre Election Budget Update (PEBU) shows that $40 million has been provisioned over three years from 2025-26 for the delivery of Light Rail Stage 2B – this includes matched Commonwealth Government funding that was secured in December 2023.
A further $50 million provision is included in the Budget in 2028-29 including a $25 million matched contribution by the Commonwealth.
Labor says light rail Stage 2B, due to be built from 2028 to 2033, will be funded through a combination of ACT Government and Commonwealth Government contributions.
“Once the route is finalised and detailed design has been completed, further negotiations will occur with the Commonwealth Government to jointly fund this transport infrastructure project,” a spokesperson said.
Funding for both the theatre and Northside Hospital have also been provisioned in the budget.
The provision for the Northside Hospital is allocated for estimated construction costs of over $1 billion from 2025 to 2026. The provision for the theatre, currently subject to a two-stage procurement process, is allocated for estimated construction costs from 2025-26.
“Both of these provisions have not been separately identified by the Under Treasurer in the PEBU as they are commercial in confidence – however they are included in the total Budget projections,” the spokesperson said.
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