Re: Cost blowout on ticket machines

["whitehat" <whitehat@alphalink.com.au>]

"Daniel Bowen" <dbowen@custard.REMOVE.net.au> wrote in message
K2uJ5.14257$Ab3.72515@news-server.bigpond.net.au">news:K2uJ5.14257$Ab3.72515@news-server.bigpond.net.au...
> Anybody care to calculate how many conductors and station staff could be
> employed for this amount of money?
> "David Bromage" <dbromage@fang.omni.com.au> wrote in message
> YqoJ5.10$_C6.8832@news0.optus.net.au">news:YqoJ5.10$_C6.8832@news0.optus.net.au...
> > Victoria's troubled automatic ticket system could end up costing
taxpayers
> > almost $600 million, the State Government has warned. OneLink, the
company
> > that provides and services the public transport system's automatic
> > ticketing machines, has lodged a $270 million claim against the
> > government, virtually doubling the cost of the original $300 million
> > contract.

There are several ways you could calculate this. As i don't have any igures
handy, those who do can plug them in.

METHOD 1:
The Victorian State government is providing $100 million (?) to provide
employment for 100 conductors (?) over 3 years. The operators say this
figure will have to be supplemented by a surcharge on tickets bought from a
conductor to cover the costs.If my memory has served me correctly on these
figures, then the additional $270 million claim could have employed an
additional 270 conductors for 3 years (provided a surcharge on tickets was
charged).

METHOD 2:
Take a conductor's salary.
Include the oncosts.
include the implementatoion costs of re-introducing conductors
Take account of the $ value of the benefits or losses from re-introducing
conductors

eg
Salary may be $30K (someoe who knows can insert the figure)
Oncosts (employers super contibution, workcover payments, sick leave,
training, uniforms, provision for redundency payment, payroll tax, etc) used
to be (from memory) between 20% and 50% when state owned. A private operator
is going to aim to bring this more in line with private sector oncosts.
Implementation costs - any ideas out there?
Benefits/losses - benefits could iclude increased goodwill and paying
customers - losses could include reduced revenue through a return to the
culture that 'Melbourne public transport is free unless you are approached
by a conductor to buy a ticket'.

There are sure to be other incomings and outgoings involved, but i am sure
that those with a more informed knowledge of the figures than I have can
give you a better estimate.

By either method 1 or method 2, it would seem like 200 - 300 additional
conductors for 3 years.

Anyone want to give a closer approximation?

whitehat