Topic: Chris Bowen’s Snowy Hydro cost blowout
Peter Stefanovic: Sarah, good to see you this morning. So, what is going on with these prices?
Senator Henderson: Well, Pete, this is a real scandal and the only thing that can happen now is for the Prime Minister to sack Chris Bowen. This is gross mismanagement. There was a change in the way that the contract was managed back in 2023, which has contributed to the blowout. But sheer incompetence by this government and Chris Bowen must go.
Peter Stefanovic: This was Malcolm Turnbull’s baby. Were initial costs undercooked?
Senator Henderson: So the Auditor General in 2022, when we left office, said that this project was on track and within budget, around about $6 billion. As you said, it then blew out to $12 billion in 2023. Chris Bowen, harnessing every bit of incompetence he has, changed the way the contract operated from a fixed contract to a cost-plus contract. He also did this in conjunction with the CFMEU, no doubt giving them a very big benefit along the way. And now we see that these costs have blown out to $25 billion, and they don’t include transmission costs as well. So it could be $40 billion or even more and this is frightening. It is sheer incompetence. $25 billion could build 25 public hospitals. Chris Bowen has got to go. He is just absolutely incompetent. He’s not up to the job. He spent far too long worried about being the president of negotiations for COP, running around the world, wasting taxpayers’ money. But this is an egregious waste of taxpayers’ money and he must be sacked.
Peter Stefanovic: But how much of these blowouts would have to do with global factors and the increased costs of supply lines, et cetera?
Senator Henderson: Well, when the Auditor General last reviewed this project, Pete, he raised very serious concerns. So this falls squarely in the hands of Chris Bowen and the Albanese government, sheer and utter incompetence. As I say, the renegotiation of that contract in 2023 meant that there was a massive spike in these costs. It is out of control, like this government, is out of control. The biggest energy project in the country, and it reflects the government’s sheer incompetence in the way it is managing energy, in contrast to the way that we would do it, hopefully if we’re elected, which is all about driving down power and, of course, delivering cheaper and more affordable power.
Peter Stefanovic: On that point, how would you finish it at a better price?
Senator Henderson: Well, we would need to assess whether this project can continue. We really can’t do that at the moment. Chris Bowen needs to tell us what the hell is going on with this project. I mean, $25 billion. But really, Pete, I mean, the Prime Minister has just got to have the courage and the mettle to put someone else in the job. This has gone on too long. Too many Australians are suffering from ridiculous energy prices because of the way that the government is managing our energy system. This net zero fraud has basically betrayed every Australian and this is just, as I say, a shocking example of incompetence.
Peter Stefanovic: It’s one of the larger blowouts that I think I’ve ever seen. Going from $2 billion to $25 billion and like you point out, that’s without building the transmission lines as well. That’s crazy stuff. Anyway, we’ll have to leave it there, Sarah. Appreciate it on this Friday morning.