There has been progress towards achieving the Government’s objectives. A new regulatory system has been established that is capable of ending illegal clearing of native vegetation. However this system is not yet fully operational and it is too early to assess its performance. 

The Department of Natural Resources is now in a position to achieve the Government’s main objective of reducing illegal clearing, especially in the west of the State. It now must establish a record of enforcement actions that are numerous, visible and successful.

Parliamentary reference - Report number #155 - released 19 July 2006

In our opinion the Government’s ‘no net cost to government’ requirement was a legitimate (but not the only possible) basis for the tunnel bid process. The Government was entitled to decide that tunnel users meet the tunnel costs. Structuring the bid process on the basis of an upfront reimbursement of costs incurred (or to be incurred) by the Roads and Traffic Authority (RTA) was therefore appropriate.

In our opinion, however, the Government, Treasury and the RTA did not sufficiently consider the implications of an upfront payment involving more than simple project cost reimbursement (i.e. the ‘Business Consideration Fee’ component). In addition, the RTA was wrong to change the toll escalation factor late in 2002 to compensate the tunnel operator, Cross City Motorway Pty Ltd, for additional costs.

Parliamentary reference - Report number #152 - released 31 May 2006