Project Costs Blow-Out

Upstream Online reports on a project whose budget has been blown to the tune of $20bn:

The paper cited … union demands, high-cost local manufacturing and productivity issues as the reasons behind the expected cost increase.

Union demands?  Productivity issues?  This must be Nigeria, right?

Erm, no.

It’s Australia.

It appears it’s not just African countries which seem determined to kill the goose that lays the golden eggs.  Maybe they should send Oprah to Barrow Island?

Of course, nobody saw this coming.  Nobody at all.

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3 Responses to Project Costs Blow-Out

  1. Duffy says:

    Strange how any union run enterprise is plagued by decreased productivity and increased cost. It’s almost as if it’s an inherent part of the unions. That can’t be so. It has been explained to me over and over that unions are there to Protect Worker’s Rights(TM) and such.

  2. Australia used to have tremendous problems with strikes and industrial action, up to including breweries that would go on strike six weeks before Christmas every year. (It is hard to overstate just how vital beer is at Christmas time in Australia). Then, from the late 1970s and into the 1980s and 1990s, the Australian economy declined, we got poorer compared to the rest of the world, governments were able to deregulate and introduce competition in many sectors of the economy, and we even got some tentative labour market reforms. Along with that, people became more insecure about keeping their jobs, so the number of strikes and the amount of industrial action declined, even in theoretically unionised workplaces.

    Then Australia had this enormous resources boom in the 2000s, driven largely by the growth of the Chinese economy. Industrial action returned with a vengeance, and all the bad practices and ridiculous working rules returned. Lord it will end badly.

  3. Chris says:

    You have to laugh and it’s only a piddling 15 million tons per year plant.

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