State Silver Sale "A Dud"

Damning articles in the Daily Telegraph and elsewhere are beginning to expose the appalling rip-off of state taxpayers by the Keneally government with the electricity sale. No wonder she closed down parliament early to prevent debate!

Perhaps the best comment was by Andrew Clennell, "Talk about burning the villages on the way out. Kristina Keneally and Eric Roozendaal's appearances at the power inquiry revealed one critical thing: This sale is a dog."

Kirkham Bridge to be used as a Truck Park?

The latest rumour is that Transurban wishes to close one lane of the Beecroft bridge over the M2 to use it as a park for construction equipment - nothing to do with the stated reason, of widening the bridge spans!

This was never mentioned in any of the documentation submitted before the project started.

The road belongs to Hornsby Shire, not to the RTA or Transurban, and the Shire needs to ensure that the rights of access to the road by local residents are maintained as far as possible. Transurban should have to justify closing any of the bridge for any part of the 22 months of the project, and must be forbidden to use the closed lane just as a construction car park!

Thoughts on Epping Bus Ramp Removal

In my post on 6 Jan, I quoted from a letter by John Goldberg, including how Transurban is relying on increased induced traffic on the widened M2 to raise cash flow. Of course for that same reason Transurban has a powerful incentive to get people out of the buses and onto the road.
I confess that I don't know what toll a bus pays to use the M2 from the north west to Epping, but I am sure displacing those commuting passengers into cars and making them drive all the way into the city will significantly increase Transurban's cash flow.
This is where the NSW government and the RTA should be applying brakes and checks on the project to apply an integrated transport solution to north west Sydney's desperate traffic problems.

Funding NSW Flood Damage Repairs

Given the awful events up north in the last few days, one assumes that the NSW government will no longer pursue the commitment of $520 million of state funds to the Epping to Paramatta rail link! Suddenly there are much more urgent needs for that and more funding to be spent rebuilding our damaged state!
It seems a shame that the $550 million funding being provided to widen 21 km of the M2 cannot be reallocated somehow to the same purpose. With roads damaged and destroyed over a large part of northern NSW and Queensland, it seems such a waste to be widening a short stretch of motorway in a project that has been widely labelled unnecessary and unjustiable.

Federal Government now selling NSW Silver!

According to the SMH, the federal Transport Minister, Anthony Albanese, and Kristina Keneally will sign a contract for the Epping to Parramatta train line before the state election, even though Mr Albanese must know Kristina will be turfed out of office in that election! The contract will be worded so that the $2.1 billion federal funding cannot be re-allocated to suit the wishes of the NSW electorate! So much for democracy!
Barry O'Farrell says the state needs the north-west rail link much more urgently than the E/P train. Surely if the electorate agrees with him, Kristina should not with a clear conscience be able to over-rule that majority view.
Mr Albanese is quoted as saying "this federal Labour government doesn't renegotiate our commitments; we deliver on them." Surely then he shouldn't be negotiating now with the failed NSW Labour government, but should wait until the taxpayers have voted. Then he can negotiate in good faith with the real NSW government.
The SMH says that the matter might be irrelevant. The NSW state will be expected to provide $520 million at the start of the project, but the federal government's contribution of $2.1 billion won't be required until 2014. By then the federal governments could also have changed hands. But in the meantime NSW taxpayers will be up for however much of our money the state manages to spend before Mr O'Farrell cancels the project.

M2 Travel Time Savings Overstated

There is a powerful letter in the Northern District Times this week, questioning the whole concept of the M2 widening project. The letter is from John Goldberg, a highly qualified and experienced traffic engineer.

"The claims of travel time savings are part of a derisible economic analysis, prepared by a Transurban consultant with the clear aim of justifying the project. The claims have been shown to be spurious by (Mr Goldberg) in a paper to be published shortly. Transurban has overstated the savings by a factor of four. This means the savings are worth far less than the cost of the project over its concession lifetime."

Mr Goldberg argues that the project is only going ahead because Transurban needs to generate increased cash flow to service their huge group debt of more than $7 billion. Transurban believes the increased cash flow will mainly come from induced traffic, which will of course increase congestion and reduce the travel time savings.

Mr Goldberg says, "The M2 upgrade affair generally demonstrates that transport planning in a major city cannot be reliably carried out by agencies such as the RTA using community manipulation disguised as consultation."

However that is slightly unfair. The problem with this specific project is that, as the letter reminds readers, Kristina Keneally originally approved the project as "critical infrastructure" back in 2009, thereby removing most of the planning checks and balances that should be applied to such a disruptive and questionable project. If the project had been reviewed in the way the original M2 build was reviewed, many of the serious deficiencies in the new widening project might have been excised from the plan. Just one example is the project's intent to remove the excellent Epping Bus Ramp, which was a mandatory part of the original approval for the M2 back in the 1990's. Of course it was the RTA that persuaded Kristina to sign that infamous ruling.

Mr Goldberg suggests that the incoming government should invoke the doctrine of executive necessity and cancel the contract for this project, and undertake serious reform of the RTA.

M2 Widening Access to Chilworth Reserve

This is an extract from a most helpful response from the Transurban information line, M2Enquiries@leicon.com.au, about the plans for access to the construction camp to be built under the viaducts in Chilworth Reserve.

"Thank you for your enquiry regarding the M2 Upgrade project.

"The northern access to the compound site at Devlins creek that you are refering to (near the Pennant Hills golf course) is going to be used to access the Devlins Creek compound site during the M2 upgrade. However, this access track does not give access to the southern side of the compound. Access on the southern side near Allerton Road is currently being assessed.

"The old access road between the M2 and the golf course fence only allows access in - it does not allow access out of the compound area.

"The existing informal access off Orchard Road has a corridor of Blue Gums, and the potential impacts surrounding this area of vegetation is currently being considered.

"Pedestrian access under the viaduct at Devlins Creek will be maintained where feasible, but from time to time potential short term closures may be required for safety reasons. Sinage and written notice of closures will be given prior to any closures taking place."

Building in Flood Affected Areas

One of the most thought provoking articles on the Queensland floods was by Bernadette George in the SMH yesterday. She asks how did those people get planning permission for low-set houses on known flood-prone land!
She urges that the planners responsible for building in those areas should stipulate standards such as "floor levels to be at least two metres above ground level."
As she says, "Many older-style houses up on stilts are taking the current floods in their stride." And on the front page of today's SMH you see a Rockhampton family standing up to their knees in flood water, outside their house which was built on a brick plinth so the living areas are high above the flood water. Obviously their builders planned ahead, but the local planning councils in the area don't seem to have had the same common sense.
One contributing factor to the present flooding is the enormous amount of tree clearing over the decades, which has reduced nature's ability to absorb, retain, and restrict the effects of heavy rain.
As Bernadette says, "Nature is just doing what is entirely predictable." Town planners should be doing the same.

More NSW Taxpayer Silver being sold off

According to the Sydney Morning Herald today, the state government will sell large chunks of public land around Royal North Shore Hospital!
Doctors say the plans would make it impossible to meet the demands of a growing population.
The chairman of the hospital's medical staff committee said this could affect NSW patients for the next 30 years.
A submission by Whilloughby Council argues that the sale is ill-considered and that planned high-rise commercial developments could get in the way of helicopters taking patients to the hospital.
One wonders at the motives of the NSW government, continuing to sell off state assets in the dying months of their lamentable rule. They need to remember they are effectively tenants nearing the end of their lease, and the taxpayers are the real owners of these assets. A tenant does not have the right to sell bits of the house before vacating!

New Blog on Local Issues

It's good to see that the Beecroft Cheltenham Civic Trust has started a blog, to enable them more rapidly to report on major issues affecting Beecroft and Cheltenham residents.
The blog's address is BCCT2119.blogspot.com, if you want to be kept informed on issues like the M2 Widening Project and the Hornsby Shire Housing Strategy, I suggest you become a follower of their blog.

Selling the family silver continued

For a great read, go to:

http://www.dailytelegraph.com.au/news/nsw-act/eric-roozendaal-flees-his-dud-power-deal/comments-e6freuzi-1225971781002

78 comments all with one recurring theme - condemning the labour state government for shamelessly selling off taxpayer assets in the dying days of their time in power!

About the most charitable comment was this one:
"Since parliament will not meet again until after the election, why do election conventions not apply here. Election conventions ensure that no major decision is made that will bind the next government. Even though the election has not yet been called, the convention should apply." Surely that convention should also have applied to the recent signing of the contract for the M2 Widening Project.

Three months ago this blog posted a letter from Richard Talbot on this topic, and it seems everything he forecast is coming to pass.

Kirkham Bridge Update

According to the BCCT, Transurban does plan to close the Kirkham Road bridge over the M2! The closure would be "at least six months", but a lot of Beecroft and Cheltenham residents are doubtful about that promise, remembering what happened with the Copeland Road bridge across the railway. What is most worrying is the statement "Hornsby Council has been unsuccessful in their attempt to get the operators to establish alternatives". There should be no discussion on this, the approved plan calls for single lane working, why are the authorities seemingly powerless to enforce that plan?
Closure could happen as soon as January 2011, and it has been suggested that the required "public consultation" will be initiated late in December with submissions closing early in January. Democracy? Come on Kristina, you signed off on this project when you were Planning Minister, now enforce what you signed off on!
Meanwhile everybody should be writing to their MP, State and National, to the RTA, and to Transurban and anyone else, to make clear our concern at what would be a gross abuse of democracy.

No Mandate to Sell Electricity

Taxpayers are suddenly waking up to the fact that one of our biggest remaining assets has been quietly sold off! Presumably the money will be used to pork barrel before the election in a last ditch attempt to sway the more gullible members of the electorate!

Empty Nesters

The number of couples living without children at home is about to outstrip those with kids, for the first time in a very long time. The Australian Bureau of Statistics report showing this says the ageing population and increasing number of empty nesters will contribute to a steep rise in households without children.

Swan's Bank Reforms

Perhaps the best comment on the long-awaited bank reforms was by Terry McCrann in the daily telegraph. "It takes a very special kind of stupid to craft something that is both pointless and destructive."

Better Homes Realty

In November Better Homes was advertising a property in Cheltenham Road for $700,000 prior to auction, but after it was passed in they increased the price to a more realistic $875,000. I thought that method of conning would-be buyers into paying for building surveys was actually against the law?

Sales Agreements

In October I reported on a McGrath exclusive sales agreement that requires vendors to give thirty days notice of terminating the agreement. What the vendor telling me this didn't know was that, once you give that notice, McGrath remove the sign from outside the property and take the listing off the internet! Meanwhile the agency agreement is still in force and the owner can't risk signing up with anyone else!

PS Soon after posting the above, McGrath sent the vendor a letter releasing him from the agency agreement, but including the phrase "if the property is purchased by somebody that has been introduced by McGrath (agency name) during the period (dates of the original contract) or within the next 90 days commencing (date of this letter) a commission fee of (commission in the contract) will be payable on completion of the sale."
Taken to its extreme, this allows McGrath to claim the full commission if anybody who entered their office over this entire seven month period ever buys the property at any time into the distant future!
The only redeeming feature is that the paragraph does not specify to whom the commission is to be paid, so the vendor would meet this 'obligation' by paying commission to the agency that negotiates the sale!
Even without that flaw in the wording, I am assured that this sort of open ended 'payment for nothing' clause would never be enforced by a court, but it has caused deep distress to the vendor.

Rates on Hold this Month

The Reserve Bank has left the official cash rate on hold at 4.75%. Given the dramatic fall in value of house sales that followed the unexpected rise in November, this is good news indeed for owners of houses in Australia.

Green Offset in Hornsby Shire Planning

Greens Councilor Andrew Martin of Hornsby Shire Council writes an interesting letter for the Monthly Chronicle, on the topic of Green Offsets used by the Council when assessing Development Applications. He is concerned that several established areas of Blue Gum High Forrest have been "offset" for relatively small sums, $10,000 or $20,000, which of course are trivial in relation to the enhanced value of the development once the trees are removed.
Under the Green Offset policy, the DA is approved on the understanding that the removed Blue Gum will be replaced with perhaps four sapplings in another area. But Clr Martin points out that the result is a gradual removal of vegetation from building plots into existing already vegetated reserves, which will adversely change the character and quality of our suburbs forever.

Questions about M2 Financing

Here is an interesting comment off the internet, relating to the recently announced new financing for the M2 Widening project:
“Out of $740 million of new loans given by banks to Transurban, $465m are only for refinancing old M2 debt, leaving just $275 m for a project which costs $550 m to build. Where will the other $275 m come from? Transurban already sits on a mountain of debt which is continuously being rolled over (or should we say tolled over), but not paid back."