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The Forum > General Discussion > Why does it cost so much?

Why does it cost so much?

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Every day I am staggered at the cost of doing anything in this country. The alarm bells first started ringing about 5 years ago when a set of traffic lights was installed at a T-instersection in my Melbourne suburb. Naturally the intersection had functioned perfectly well for decades without the traffic lights, so I also questioned at the time why it was deemed necessary to put them in.

4 poles with lights, 2 pedestrian crosswalks with stop/walk signals, some fancy non-slip paving on each corner and over a month in the making – all at a cost of $475,000! And that was the amount budgeted - goodness knows how much it actually ended up costing.

It’s five years on and every day I continue to be astounded. Billions spent on roads that are outdated and useless before they’re even finished. Billions on proposed rail links without also planning for increased traffic at city terminals. Billions spent on new housing – before adding in the cost to ageing and inadequate infrastructure. And it’s not only public costs that astound. Building and renovation in the private sector is a minefield of exploitation.

The South Melbourne Council has recently come under fire for looking to replace the wheel chair ramp outside their office with a new one. Ten years ago, the still perfectly adequate ramp was installed for $20,000. The estimated price (according to the Council) to replace it today is $200,000!

An English friend recently returned to London for a holiday and was amazed, after his own observations and speaking to friends and family, how much cheaper it was there than in Sydney, where he lives. Clothing, food, building services, etc.

So my question to everyone is this: is anyone else out there dismayed at how much we pay for essential and elective services? I know there will be many who will cite high Aussie dollar, etc, but remember this upwards spiral has been going on far longer than the dollar has been high. Is it time to take off our rose-coloured glasses
Posted by scribbler, Wednesday, 13 June 2012 12:09:38 PM
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Her is a few reasons.

Workplace practices.
It is getting that way now, that for every worker, that's one who actually does something 8 hours a day, there are one or more observes.

Safety inductions are costing millions and harming productivity.

Now while I accept that safety is extremely important, you simp,y can't legislate against stupidity.

Working conditions
There are so many these days on days off, RDO's etc, that setting rosters must be a nightmare. What ever happened to a simp,e 40 hour week.

Operating costs.
Operating costs for business is fast becoming a joke. F cause, these costs, and some, are simply passed on, especially when governments are arranging the work.

Set up costs.
Wit fin ace costs, insurances, indemities, etc, etc, the cost of establishing a business these days is becoming a joke as well.

There is a start.
Posted by rehctub, Wednesday, 13 June 2012 2:22:32 PM
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On the median strip in the middle of a 3 lane highway I passed the other day, they were planting trees and some grasses. For a start, WTF? Why does a median strip need this to start with. It's not to do with safety and I am sure the look of the area is leafy enough, and um, priorities?

Then I saw a sign for the Blah blah blah project,

.......$600,000!
Posted by Houellebecq, Wednesday, 13 June 2012 2:40:53 PM
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Anyone who contracts for Govt work has to charge many times more for all the BS.There is also the nepotism factor ie kickbacks.This is where your tax dollars are wasted.
Posted by Arjay, Wednesday, 13 June 2012 5:04:24 PM
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Yes they make every kilometer of road so expensive, that we can't afford enough of it.

We recently had about a kilometer & a half of our main road upgraded. They did a good job this time. the last time the surface was shot in under a year.

They built it up a little to keep it dry, & made it nice & wide, much wider than the last time. We were all impressed that they had learnt from last time, & loved it.

Then the overkill. The road goes through a couple of minor curves. My wife's little Mazda could take either of them at 150Km/H, if it could go that fast. The main roads however decided to install Armco fencing, with hundreds of red & white reflectors around each curve, & for half a kilometer either side of a 500mm high culvert. Half a million for nothing.

Now if a car did run off the road, instead of running harmlessly into a paddock, it would bounce off the armco, back into the traffic.

Next we got advisory speed signs, first labeled 60, then 80, then removed altogether.

What we need is a tax payer ombudsman, able to fine bureaucrats the cost of all their stuff ups with tax payer money. Of course they would all have no money left, & starve.
Posted by Hasbeen, Wednesday, 13 June 2012 6:09:17 PM
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<< …they make every kilometer of road so expensive >>

Hasbeen, I agree!!

<< What we need is a tax payer ombudsman, able to fine bureaucrats the cost of all their stuff ups with tax payer money. Of course they would all have no money left, & starve. >>

Hahahaa. But yes, we could fund an ombudsman of this sort for a fraction of the money that is wasted.

For example:

The Cardwell Range realignment of the Bruce Highway, here in north Queensland. 115m$ WASTED!

A totally bloody unnecessary project!

The road was fine before this work following the realignment on the south side of the range about fifteen or so years ago. Dumb allocation of taxpayers money. There are so many much more worthy things that it could have been spent on.
Posted by Ludwig, Wednesday, 13 June 2012 8:48:40 PM
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Our shire is putting in a new set of buildings in downtown Strathpine, replacing the library with a new one, a new shopping centre etc. At the Strathpine station a young woman materialised with an elaborate display. She distributed a questionnaire asking for comments on this new development. The display told how all these new buildings were to make Strathpine a 'hub' for activities and commerce in the area. Strathpine is already a hub. I use the library and have never seen it overcrowded. The whole thing seemed unnecessary and even harmful. Rather than a questionnaire asking for comments on this new development it would have been better to ask residents of the area at an earlier date whether they thought such a development was needed or wanted.

Our masters seem unconcerned with the consequences of uncontrolled population growth and put up projects in an anarchic manner with a lack of concern for the economic, social and environmental consequences of such projects.

Candidates for office are required to make public the sources of their campaign contibutions after the elections. Such inforamation should be available to the voters before the election.

Developers and those who have commercial connections with them have too much of a conflict of interest to be allowed to run for office in local or state government. I am purposely avoiding mentioning particular conflicts as olo could be subject to defamation if I did.
Posted by david f, Thursday, 14 June 2012 9:32:48 AM
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Many years back my wife's cousin was a clerk in the Main Roads Dept
in the section installing traffic lights.
To keep them busy they just went looking for places to install lights.
There was no consideration whether they were needed.

Near me bushes were installed in centre of the divided highway.
Problem is that when making a right turn into my street you cannot see
oncoming traffic for the bushes. I have to move to a position almost
in the oncoming lane to see.
This maneuver frequently scares the oncoming driver.
I have complained a couple of times, but instead of removing them
they just cut them back, errr duh !
Are ALL public servants that stupid ?
Hmmm, I was one for five years in my 20s.

PS do you when making a right turn, stand with your wheels already
turned to make the turn ?

You do ! Well it has been nice knowing you, hope you have a nice funeral.
Posted by Bazz, Thursday, 14 June 2012 9:45:46 AM
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One thing I am noticing in the lead up to the end of the financial year is the rash of seemingly pointless roadworks being carried out. Clearly the department has to use up its budget in order to be able to claim similar or more for next year. Any surplus in the kitty come July 1 will be frowned upon! To spend money for the sake of spending it is criminal.

David f, I agree that all contributions to electoral candidates on all tiers of government should be declared prior to the election. Haven't we been promised, over and over by successive governments, greater transparency? That would be a good place to start.
Posted by scribbler, Thursday, 14 June 2012 2:02:00 PM
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<< One thing I am noticing in the lead up to the end of the financial year is the rash of seemingly pointless roadworks being carried out. >>

Yep I concur with that, scribbler. I’ve just witnessed a prime example of pointless road resealing on the Cook Highway just north of Palm Cove, Cairns.
Posted by Ludwig, Thursday, 14 June 2012 7:57:55 PM
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Lawyer, doctors, accoumtans, consultants, even tradesmen and business owners/leaders have indemnity insurance, so why not pollies?

Woud it it be nice to have our billions back.
Posted by rehctub, Thursday, 14 June 2012 8:22:33 PM
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Get a copy of 'back to school' with Rodney Dangerfield and watch the
class room scene where the professor is setting up a ficticious company
and you get the message.
Posted by pepper, Friday, 15 June 2012 3:24:56 PM
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It's a mindless system along with the mindless tax system. If the money isn't needed this year then save for next year. Is that so difficult to work out ? They're a weird mob alright.
Posted by individual, Friday, 15 June 2012 3:34:27 PM
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Nice to see everyone agreeing for a change!

A couple of more examples - perfectly good road in NQ between main town and small town 20km away. New line painting done in June only to see the road completely resurfaced 6 months later. Neither needed doing. My guess was that if you don't spend it, you lose it.

Recently in a nearby suburban through street the council installed traffic islands at each intersection - now rather than being able to pull into the centre of the road when doing a right turn (and allow traffic to pass on your left), you have to block the lane and either hold up traffic or they mount the curb. Wasted money for something that harms traffic flow and decreases safety.
Posted by Peter Mac, Saturday, 16 June 2012 3:41:22 PM
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Dear Peter Mac,

We can agree on the subject. Perhaps we can also agree that we're powerless to change the situation.
Posted by david f, Saturday, 16 June 2012 3:52:21 PM
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we're powerless to change the situation.
David f,
Only because no-one in the public service wants to change it. I think we should focus on exposing these bureaucrats by strongly hinting at their identity. After all, they're causing us grief with our money. Let's work on this.
Posted by individual, Sunday, 17 June 2012 10:56:53 AM
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