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The Impact of the Westconnex Project

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The Impact of the Westconnex Project LEGISLATIVE COUNCIL Public Accountability Committee The impact of the WestConnex Project Ordered to be printed 17 December 2018 according to Standing Order 231 Report 1 - December 2018 i LEGISLATIVE COUNCIL The impact of the WestConnex Project New South Wales Parliamentary Library cataloguing-in-publication data: New South Wales. Parliament. Legislative Council. Public Accountability Committee. The impact of the WestConnex Project / Public Accountability Committee [Sydney, N.S.W.] : the Committee, 2018. 223 pages ; 30 cm. (Report no. 1 / Public Accountability Committee) “17 December 2018” Chair: Rev. Hon. Fred Nile, MLC. ISBN 97811922258724 1. WestConnex (N.S.W.)—Planning. 2. Express highways—New South Wales—Sydney—Planning. 3. Infrastructure (Economics)—New South Wales—Sydney—Planning. 4. Project management—New South Wales—Evaluation. I. Nile, Fred. II. Title. III. Series: New South Wales. Parliament. Legislative Council. Public Accountability Committee. Report ; no. 1 388.122099441 (DDC22) ii Report 1 - December 2018 PUBLIC ACCOUNTABILITY COMMITTEE Table of contents Terms of reference vi Committee details vii Chairman’s foreword viii Findings x Recommendations xii Conduct of inquiry xv Chapter 1 The WestConnex Project 1 What is WestConnex? 1 Project stages 2 Project justification and intended benefits 4 Project benefits 6 Project design and delivery 7 Roads and Maritime Services 7 Sydney Motorway Corporation 8 Other government bodies 10 How is the WestConnex project being funded? 10 Community opinion 11 Community based groups 11 Local government 12 Individual submissions to the inquiry 13 Committee comment 14 Chapter 2 The WestConnex business case 15 The business cases 15 WestConnex Business Case Executive Summary 16 WestConnex Updated Strategic Business Case 17 Independent review of the business case 18 Audit Office of New South Wales 18 Infrastructure Australia 21 SGS Economics and Planning 23 Other experts 25 Community views on the adequacy of the business case 25 Committee comment 26 Consideration of public health costs 28 Report 1 - December 2018 iii LEGISLATIVE COUNCIL The impact of the WestConnex Project Committee comment 30 Transparency of the business case 30 Committee comment 31 Chapter 3 Project delivery 33 The delivery model 33 Roles, responsibilities and governance arrangements 33 Transparency and accountability concerns 39 Committee comment 40 Funding and financing arrangements 42 Funding sources and asset recycling 42 Committee comment 44 The WestConnex tolling regime 44 Committee comment 46 The Sydney Gateway Project 47 Evolution of the Gateway Project 47 Community opinion on the separation of the Sydney Gateway project 49 Committee comment 50 Calls by inquiry participants to cancel implementation of Stage 3 51 Committee comment 53 Chapter 4 Air quality, health and other impacts 55 Air quality at ventilation facilities 55 Community efforts to undertake air quality monitoring 57 Committee comment 58 Efficacy of filtration arrangements 59 Predicted air quality outcomes 59 Reforms to air quality in motorway tunnels 61 Committee comment 62 Other health impacts 63 Noise from construction 63 Night works 64 Pollution from construction 66 Mental health impacts 67 Loss of green space and vegetation 67 Government response to community concerns over green space 69 Disruption to daily lives 70 Safety breaches 72 Government response to community concerns about safety breaches 74 Committee comment 75 Adequacy of government mitigation measures 77 iv Report 1 - December 2018 PUBLIC ACCOUNTABILITY COMMITTEE Stage 3 WestConnex 78 Committee comment 79 Chapter 5 Compulsory acquisition and other property impacts 81 Overview of the compulsory acquisition process 81 Previous reviews into property acquisition in New South Wales 84 Property acquisition for the WestConnex project 85 Premature issuing of acquisition notices 86 Inadequate communication 87 Undervaluing properties and claims of bullying 90 Conflicts of interest and lack of independence 95 Poor planning and management 96 Committee comment 100 Property damage as a result of construction 102 Committee comment 108 Chapter 6 Community engagement and complaints handling 111 Community consultation practices 111 Issues raised by stakeholders 113 Community engagement criticisms 114 Consultation during the EIS process 120 Committee comment 121 WestConnex complaints handling 121 Issues raised by stakeholders 125 Inadequate responses to complaints 125 Difficulties in navigating the complaints process 126 Ineffectiveness of the WestConnex Complaints Hotline 127 Committee comment 128 Appendix 1 Complaint numbers and categories 131 Appendix 2 Submissions 132 Appendix 3 Witnesses at hearings 149 Appendix 4 Minutes 153 Appendix 5 Dissenting statements 200 Report 1 - December 2018 v LEGISLATIVE COUNCIL The impact of the WestConnex Project Terms of reference 1. That the Public Accountability Committee inquire into and report on the impact of the WestConnex project, including: (a) the adequacy of the business case for the WestConnex project, including the cost- benefits ratio (b) the cost of WestConnex project, including the size and reasons for overruns (c) consideration of the governance and structure of the WestConnex project including the relationship between Sydney Motorway Corporation, Roads and Maritime Services, the Treasury and its shareholding Ministers (d) the compulsory acquisition of property for the project (e) the recommendations of the Audit Office of New South Wales and the Australian National Audit Office in regards to WestConnex (f) the extent to which the project is meeting the original goals of the project as articulated in 2012 (g) the relationship between WestConnex and other toll road projects including the Sydney Gateway, Western Harbour Tunnel, F6 and Beaches Link (h) the circumstances by which WestConnex and the Sydney Gateway were declared to be separate projects in 2017 (i) the cost of the project against its current valuation as determined through the sale of the Sydney Motorway Corporation and whether it represents a good investment for NSW taxpayers (j) any other related matter. 2. That the committee report by 17 December 2018.1 The terms of reference were self-referred by the committee on 21 June 2018.2 1 The original reporting date was 1 December 2018 (Minutes, Legislative Council, 21 June 2018, p 2803). The reporting date was later extended to 17 December 2018 (Minutes, Legislative Council, 16 October 2018, p 3011). 2 Minutes, NSW Legislative Council, 21 June 2018, p 2803. vi Report 1 - December 2018 PUBLIC ACCOUNTABILITY COMMITTEE Committee details Committee members Rev the Hon Fred Nile MLC Christian Democratic Party Chair The Hon Greg Donnelly MLC Australian Labor Party Ms Cate Faehrmann MLC* The Greens The Hon Trevor Khan MLC The Nationals The Hon Shayne Mallard MLC* Liberal Party The Hon Daniel Mookhey MLC* Australian Labor Party The Hon Peter Phelps MLC* Liberal Party * Ms Cate Faehrmann MLC is substituting for Mr Justin Field MLC for the duration of the inquiry. * The Hon Shayne Mallard MLC is substituting for the Hon Natalie Ward MLC for the duration of the inquiry. * The Hon Daniel Mookhey MLC is substituting for the Hon Courtney Houssos MLC for the duration of the inquiry. * The Hon Peter Phelps MLC is substituting for the Hon Matthew Mason-Cox MLC for the duration of the inquiry. Contact details Website www.parliament.nsw.gov.au/publicaccountability Email [email protected] Telephone (02) 9230 2620 Report 1 - December 2018 vii LEGISLATIVE COUNCIL The impact of the WestConnex Project Chairman’s foreword WestConnex is one of the largest and most complex transport projects ever to be undertaken in Australia. This inquiry was established to examine the business case, costs and governance structure associated with the WestConnex project. It was also set-up to look at the impacts of the project on the local community. The committee understands and accepts that major infrastructure projects, such as WestConnex, cannot be delivered without a certain amount of disruption. However, it is clear that construction for the WestConnex has had a significant and pronounced impact on local communities and families. This has undoubtedly been a very challenging time for those affected. I sincerely hope that some of the findings and recommendations contained in this report may make life a little easier for those impacted by the WestConnex project. The committee has questions regarding the transparency of the WestConnex project and the processes that led to the NSW Government's investment in it. A particular concern is that the government failed to adequately consider alternate options at the commencement of the project. The committee also found deficiencies with the independent assurance process conducted for the first business case. The report includes recommendations that seek to strengthen the transparency arrangements regarding options analysis and the independent assurance process for future major infrastructure projects. There is a genuine fear within the community that the proposed unfiltered tunnel ventilation stacks for the WestConnex do not meet best practice standards. It has been argued that this will result in negative health outcomes for those living within the vicinity of the stacks and in surrounding suburbs. Many called for the fitting of filtration systems and I agree with these calls. The committee has recommended that filtration systems be installed on all current and future motorway tunnels. A number of residents
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