3AW: East-West Link compensation into the billions: reports. January 20, 2015 Lauren Hilbert
A financial advisor and lawyer have been recruited to help the government negotiate an East-West Link compensation deal, with reports the consortium is demanding more than $1 billion to tear up the contracts.
In a statement, Treasurer Tim Pallas said financial advisor John Wylie and commercial litigator Leon Zwier are working towards a fair outcome for Victorian taxpayers.
According to the Herald Sun, key members of the East-West Link consortium want $1.2 billion to scrap the project.
Construction giant Lend Lease reportedly favours a more cautious approach, wanting hundreds of millions of dollars so as not to dent its chances on future government jobs.
Before the election, Premier Daniel Andrews repeatedly stated the contract is “not worth the paper it’s written on” and insisted no compensation would be paid.
The government says the discussions are commercial in confidence.
They also say the scope of the agreement will be released at an “appropriate time” subject to the view of the consortium members.
ROSS STEVENSON: To me the choice now is pretty obvious – do we build the road, or hand over the cheque?
