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Well summed up by Michael O'Brien."A responsible government – a government that actually values our state's reputation and good name – doesn't rip up contracts." These words describe an obvious proposition, one long observed by both sides of Victorian politics. Until now.There are good reasons that governments are bound by the contracts of their predecessors. The Bracks and Brumby governments signed contracts that cost, and continue to cost, Victoria dearly. Labor's white-elephant desalination plant, dysfunctional myki ticketing system and botched pokies licence auction were all opposed by the Coalition in opposition. Despite this, the Coalition did not rip these contracts up on taking office in 2010. Why not? Because oppositions do not determine contracts, governments do.A contract with the state does not dissolve on a change of government, no matter how inconvenient it may be for an incoming government. Federal Labor's treasury spokesman, Chris Bowen, told the National Press Club last September, "Labor honours contracts entered into by previous governments. Even if we don't like them, for reasons of sovereign risk, Labor honours contracts in office signed by previous governments." Sadly for Victoria, Daniel Andrews didn't get the memo.The East West Link was enthusiastically endorsed by the Brumby government, after a needs assessment by Sir Rod Eddington. Supporters of the project included Bill Shorten, Julia Gillard and Victoria's trade unions. In the May 2013 budget – more than 18 months before the state election – the Coalition government announced that the project would proceed. A competitive tender ensued, involving domestic and international firms, over more than a year of consultation, preparation and planning.Standing by a contract is essential for any responsible party, not least the State of Victoria. The rule of law applies to everyone, including governments.And the quote at the start of this article about the importance of honouring contracts? It was Labor leader Daniel Andrews on ABC radio on August 13 last year – before he decided that Victoria's reputation and good name didn't matter.http://www.theage.com.au/comment/victorias-reputation-will-take-a-hammering-when-dan-andrews-rips-up-the-east-west-link-contract-20150301-13rtip.html
Well summed up by Michael O'Brien.
"A responsible government – a government that actually values our state's reputation and good name – doesn't rip up contracts."
These words describe an obvious proposition, one long observed by both sides of Victorian politics. Until now.
There are good reasons that governments are bound by the contracts of their predecessors. The Bracks and Brumby governments signed contracts that cost, and continue to cost, Victoria dearly. Labor's white-elephant desalination plant, dysfunctional myki ticketing system and botched pokies licence auction were all opposed by the Coalition in opposition. Despite this, the Coalition did not rip these contracts up on taking office in 2010. Why not? Because oppositions do not determine contracts, governments do.
A contract with the state does not dissolve on a change of government, no matter how inconvenient it may be for an incoming government. Federal Labor's treasury spokesman, Chris Bowen, told the National Press Club last September, "Labor honours contracts entered into by previous governments. Even if we don't like them, for reasons of sovereign risk, Labor honours contracts in office signed by previous governments." Sadly for Victoria, Daniel Andrews didn't get the memo.
The East West Link was enthusiastically endorsed by the Brumby government, after a needs assessment by Sir Rod Eddington. Supporters of the project included Bill Shorten, Julia Gillard and Victoria's trade unions. In the May 2013 budget – more than 18 months before the state election – the Coalition government announced that the project would proceed. A competitive tender ensued, involving domestic and international firms, over more than a year of consultation, preparation and planning.
Standing by a contract is essential for any responsible party, not least the State of Victoria. The rule of law applies to everyone, including governments.
And the quote at the start of this article about the importance of honouring contracts? It was Labor leader Daniel Andrews on ABC radio on August 13 last year – before he decided that Victoria's reputation and good name didn't matter.
http://www.theage.com.au/comment/victorias-reputation-will-take-a-hammering-when-dan-andrews-rips-up-the-east-west-link-contract-20150301-13rtip.html
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