Monday, October 25, 2010

Cost-benefit analysis: Samuel versus Treasury

Treasury (Red book):

"More can also be done to improve the regulatory and governance frameworks for the efficient provision of national infrastructure. Reform of Infrastructure Australia would be a significant first step, reinforcing the need for rigorous cost-benefit analysis of project proposals and enhancing the pipeline of ready projects for investment."

ACCC Chair Graeme Samuel (RN Breakfast):

"What I did indicate was that I had some real question marks over the value of a cost benefit analysis only in the sense that a cost benefit analysis which in this context is a social cost benefit analysis is subject to so many assumptions Fran that even the best in the world will tell you that if the assumptions are then queried what you do is raise a whole range of skepticism over the value of the cost benefit analysis. What happens is you have a cost benefit analysis done by whoever it might be and then someone says yes but we don't agree with that assumption and therefore that makes that cost benefit analysis worthless."

Social Cost Benefit Analysis Samuel

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