My Blog List

Our mission

Are you that special person who - weary from trudging the endless superhighways - just longs to camp next to a glorious oasis of the mind? Do you desire to explore new frontiers, splash in shared ideas, fill your belly with the refreshing fruits of inspiration, and bask in the gentle rays of fond reflection?

Well, you can fuck right off. This, my friends, is not that place. This place is... The ShadowLands.

Thursday, April 16, 2009

Australia's import-led recovery

BOAB crunches the numbers on Kevnet and finds a lot of it doesn't add up. And the big winner?
I can see $16 billion being spent importing switches from China...
And Opposition Leader Malcolm Turnbull on the same subject...

The assertions [Rudd] made in his announcement and which he used to solicit investments from the public are not supported by a business plan, a financial study, advice from Infrastructure Australia or, so far as we know, anything other than his desire to get a big headline (it worked)...

Consider the Cross City Tunnel in Sydney. It cost nearly $1 billion to build; today, after a bankruptcy and its shareholders losing their investment, it is worth a fraction of that. Why? Because the owners' traffic assumptions proved to be wildly optimistic.

The non-blogging MSM have been extremely slow off the mark on Kevnet, which already has the strong whiff of a major stuff-up about it.

UPDATE: More about the technical difficulties from BOAB.


Boy on a bike said...

And I forgot to add that whilst the fibre doesn't wear out very quickly, the switches have a finite life. For tax and depreciation reasons, they probably have a life of 4-5 years; and you generally can't get support on them past that age anyway.

So you are up for a $16 switch bill every 5 years - and the whole lot will have to be imported.

stackja1945 said...

Rudd gets what from China?