June 15, 2011 MEDIA RELEASE
A 35% blowout on the cost of moving the cruise ship terminal from Barangaroo to White Bay means that the government should immediately cancel the move, according to Jamie Parker, Greens MP for Balmain.
"Moving the cruise ship terminal to White Bay is not supported by the industry, tourism bodies, local councils or residents. This latest blowout should see the end of the proposed transfer of the terminal," Mr Parker said.
A report from the Auditor General's office has exposed a 35% increase in the cost of moving the terminal, from an original estimate of $46 million to the current estimate of $62 million.
The report says that there is a significant risk of additional taxpayer blowouts to the Barangaroo Delivery Authority's budget, if the proposed passenger cruise terminal at White Bay goes ahead.
The Auditor General's report has highlighted the potential for value based funding arrangements made with developers to prove less beneficial over the long term, as these arrangements mean that contributions made by developers will depend on the future market value of properties constructed in the Barangaroo area.
The report found that any drop in future contributions by developers would need to be met by the authority, a scenario which would affect 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. This money should be spent on supplying services that the community actually wants and needs," Mr Parker said.
The Auditor-General's report can be downloaded here