"The people of Victoria deserve to know just what the full cost of the channel deepening project is. It has jumped by hundreds of millions of dollars since it was first announced in 2001. The latest cost estimate by the government is just under $1 billion, but this is certainly an under-estimation as it excludes a raft of costs associated with the project," she said.

"The cost blow-out has already demonstrated a lack of control in the management of the project. An independent investigation is timely to ensure that the PMC and the government are capable of delivering the project, that is, if you assume the project should be delivered at all. We need to know the reasons behind the cost blow-out.

"Given the size and complexity of the project, the costs will inevitably rise even further. Who knows just how much it will end up costing.

"The claimed benefits continue to be shrouded in mystery - it is unclear just who, if anyone, will benefit from channel deepening. I have spoken to many small exporters and importers who say there is nothing in it for them, as the levy on containers is set to double. How can a doubling of containers levies reduce their costs?" she asked.

"The Port of Melbourne Corporation in its annual report says there are just under $2 billion worth of benefits and with costs of $969 million, a simple calculation leaves just over $1.2 billion of benefit over 20 years plus, which is minuscule. The whole cost -benefit case put forward by the PMC is an exercise in smoke and mirrors. If an appropriate discount rate is applied to the analysis, the claimed benefits start to evaporate," Ms Pennicuik said.

"I moved this motion on behalf of the Greens so that once and for all the full costs of the channel deepening project can be revealed to the Victorian public and to clearly identify what, if any, benefits will accrue from the project and to whom.

"This is a debate about values. Melbourne is a city that is privileged to have a bay in such good condition, and it is in good condition because dredging has been minimised. Scallop dredging was stopped, and Melbourne Water and other water authorities have spent millions of dollars preventing nitrogen run-off in the bay. Melbourne is privileged to have this bay and we need to look after it," Ms Pennicuik said.

"The channel deepening project is economically as well as environmentally irresponsible," she said.

For more information:  Sue Pennicuik   0407 000 270

Back ground:
In 2001 the project was mooted to cost between $200 million and $230 million; by 2004 that had risen to $337 million; by August 2004 it had risen to $498 million, and in another month it jumped to $545 million; after the 2007 SEES was released the project was estimated to cost $763 million; and it is now listed in the government's statement of intentions as $969 million.

The economic benefits, as stated in the government's Statement of Intent, is around $2 billion over the life of the project, ie to 2030, and are not expected to be realised before 2017.

The Standing Committee, which is due to report by the end of June, will also investigate the legal and financial arrangements between the Port of Melbourne Corporation and Boskalis Australia Pty Ltd. and/or its parent company.