East-West Link Economics – Part 1

Posted on July 31, 2013 ยท Posted in Blog

According to an article in the Herald Sun (Plea to delay east-west link slammed, July 31 2013), The Victorian Government has said that delaying the signing of contracts for the proposed $9 billion East-West Link tollroad would be a risk to ‘the economy’ and ‘jobs’. Bravo Treasurer O’Brien, this is a classic move from the playbook of economic rhetoric.

It can be broadly grouped into the ‘the sky is falling’ group of tactics along with such classics as ‘the lights will go out’, ‘investors will stampede away’ and other scare tactics.

According to the Herald Sun, the Treasurer also said that delaying the project “threatens 3200 jobs” and would result in “deadlock and congestion”.

So let me get this straight. Delaying a project will cause the jobs to disappear? Poof. Gone. Well then I guess 3200 unemployed construction workers let out a collective cheer upon hearing the Treasurer’s announcement. Good for them, but I would have thought that a delay means what it sounds like, a delay.

As for deadlock and congestion. That’s the same deadlock and congestion that has been getting progressively worse on all forms of transport for years now? So waiting another year will cause a meltdown of our economy.

Well in that case, I guess we better just sign that $9 billion away as quickly as possible then. Companies bidding for the tender should be advised to form an orderly queue and supply their own tissues to deal with any salivating that may occur.

Bravo, Treasurer.