The North East Link has entered into more than 7000 non-disclosure agreements, including forcing people with house or tyre damage from the toll road’s construction to sign secrecy deals in exchange for compensation.
The cost of the North East Link, which will connect the M80 in Greensborough to the Eastern Freeway in Bulleen, has exploded to $26 billion, from an initial forecast of $10 billion. The state government has blamed the rising cost of materials, labour and environmental regulations for the cost blowout.
The North East Link is due to open in 2028.Credit: Joe Armao
The Age last year submitted a freedom-of-information request for the total number of non-disclosure agreements made over the course of the project so far between the North East Link and individuals and companies; the total value of secret payments; and the reasons for them.
The agency behind the tollway said its initial search of confidentiality deeds and agreements had identified “well in excess of 7000 records”. It said confidentiality arrangements were standard across every aspect of a major project, and it would be unreasonable to search further.
Asked to focus on non-disclosure agreements arising from disputes with members of the public, the agency said it had signed 83 confidentiality agreements with individuals regarding compensation worth a combined $1.097 million. It said talks continued with other residents.
North East Link authorities previously refused to detail how much taxpayer money the project had spent on payments to wealthy private schools whose land has been used or acquired for it.
Bulleen state MP Matthew Guy has criticised the project for forcing residents whose houses have been cracked during the toll road’s construction to sign confidentiality agreements. People whose cars have been damaged by potholes or poor surfaces during construction have also been forced to sign non-disclosure agreements for repairs.
Major Road Projects Victoria, the agency behind the North East Link, said it was “proactively working with nearby residents to offer respite and alternative accommodation where possible”.
“We know each household has different circumstances and encourage any residents experiencing impacts from our works to reach out to us so we can work with them to provide suitable support for their situation.
“Respite offers are made according to eligibility, effectiveness and individual needs. They may include vouchers, cab charges, sleeping masks, noise-cancelling headphones and white noise machines.”
It said requests for non-standard respite options might be considered, including fencing treatments, landscaping packages and double-glazed windows.
Opposition major projects spokesman Evan Mulholland said Labor was trying to pressure Victorians into silence through the use of non-disclosure agreements.
“It shouldn’t be this hard to get straight answers from the government. Labor’s gag orders are just another example of Premier [Jacinta] Allan’s cover-ups and fear of criticism,” Mulholland said.
“If you have to have your windows double-glazed, or stay in alternate accommodation because of government construction works, surely Victorians being able to be as open as possible about their experience would be helpful.”
Infrastructure lawyer Owen Hayford said non-disclosure agreements had proliferated in the past decade, covering employees, consultants and every person project teams engaged with.
“It’s become business as usual. Is it a good thing? I’d suggest not,” said Hayford, the principal of law firm Infralegal.
Hayford said non-disclosure agreements not only protected commercially sensitive information, security arrangements and commercial settlements, but were being used to control the narrative around a project.
“The fact that there’s more than 7000 begs the question as to are they protecting truly confidential information or are they pulling a veil of secrecy over every bit of information, including information in which the public has a legitimate interest,” he said.
RMIT professor of urban policy Jago Dodson said it was not surprising to see commercial-in-confidence arrangements for contractors and people in the construction consortium because there are “approaches, business techniques, commercial design knowledge and so forth that is valuable to those companies”.
But Dodson said democracy required transparency so that voters can decide before, during and after a project whether it was value for money and well executed.
“There’s no need for an NDA to be applied if someone’s house foundations had been shifted slightly and therefore they’ve had some work done to remediate it. If someone’s got some chips from flying gravel on their car or a tyre’s been damaged, it shouldn’t require an NDA for fairly minor forms of compensation,” he said.
A state government spokesperson said there was a “huge amount of work going on right now to build the North East Link tunnels, upgrade the Eastern Freeway, and complete the M80 Ring Road – which is why we are working closely with the community and minimising disruptions.
“Where appropriate, we use confidentiality agreements to protect the privacy of residents’ information, and ensure they’re dealt with on a case-by-case basis – this is common on significant projects, including by previous Victorian Liberal National governments.”
The spokesperson said the Coalition had opposed “every major project in a decade and now they’re running a fear campaign about a project that will give local roads back to locals and cut travel times by up to 35 minutes”.
The North East Link agency has previously rejected Manningham Council’s bid for details on its compulsory acquisition of almost 100 businesses in Bulleen West, describing the buyouts as “private agreements between each individual trader/landowner and the state government”.
Last year, the agency refused to detail how much compensation it had paid to some of the state’s most expensive private schools. This is despite publicly available annual reports showing it had paid a total of at least $10 million to Carey Grammar, Trinity Grammar and Marcellin College to use their land in Bulleen.
The North East Link, the largest and most expensive road project in Victoria’s history, is due to open in 2028.
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