A STATEMENT FROM DEAN DEL MASTRO, MEMBER OF PARLIAMENT - PETERBOROUGH RIDING

(Peterborough, ON)  When Metrolinx Vice-President of Investment Strategy John Howe stated, “Metrolinx has other urgent, pressing and unfunded priorities.” (Peterborough Examiner, May 12, 2010) and then maintains that the study that they undertook was based on “prudence” as opposed to what the consultants actually estimated, their underlying agenda is in plain view for all to see.
 
As the sitting chair for the all-party national rail caucus for more than three years, I can tell you that no railway builds a 140% contingency into project estimates for consideration and considers that prudent; what it is in fact is sloppy.  These outrageous “contingencies” display either a total lack of confidence in the actual findings or contempt for the project on the part of Metrolinx.
 
Furthermore, the industry standard on engineering is 10% of the overall project with that number reducing as a percentage of the overall cost for projects of a considerable size (Metrolinx has budgeted close to 20% of their net project costs for engineering or $43 million in the study).
 
In addition, the industry standard on pre-existing infrastructure upgrades for contingency, on projects such as the upgrade of the Kawartha Lakes Railway, is +/- 10% based on expert estimates.  If Metrolinx, as suggested in February by independent expert analysis actually stuck to the existing right of way, the cost of upgrading the KLR has virtually no variables at play whatsoever!  Canada’s railway operators upgrade their infrastructure every day, they know what it costs to do so.  The KLR is not special in this regard and presents no special circumstances in this respect, any assertion to the contrary is either uninformed or dishonest.
 
In February, upon reviewing the Metrolinx findings, an independent expert analysis of the report made five clear recommendations to dramatically reduce both the cost to upgrade and build the required infrastructure for the new service.
 
They also suggested that the rolling stock or equipment recommended in the report was adding to both the upfront and operational costs of the project, none of these recommendations were considered or are even acknowledged by Metrolinx in their report.
 

WHY NOT?
 
To be clear, I will ensure that not one dime of the money budgeted for this project will be reallocated based on the cost projections of this study regardless of what Metrolinx states.  I will present independent expert analysis to both governments that will clearly demonstrate that the project can be built for less than the $300 million budgeted and it will operate, based on even these conservative ridership projections, without the need for large ongoing annual subsidies as Metrolinx contends
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If the Provincial representatives for the Ridings of Peterborough and Haliburton-Kawartha Lakes-Brock would like to join me in fighting for this federal government driven project and their community’s economic future, I would welcome their efforts in this regard. 
 
The Provincial Members for the Ridings of Durham, Oshawa and Whitby-Oshawa are already on record as supporting this project in the past and I suggest that they will welcome expert third party analysis that supports the construction of this critical regional project.
 

Download PDF:Dean’s Commuter Rail Report Review