Transport Minister John Watkins said government was cancelling its contract with Integrated Transit Solutions Ltd, the wholly-owned subsidiary of smartcard firm ERG that had been building the system.
After missing a series of project milestones, the cancellation of the ITSL contract had been largely expected, with Mr Watkins having warned to company late last year.
The collapse of the $370 million project puts the Government plans to give travelers a single ticket to cover all public transport back on the drawing board. Mr Watkins has already hinted Government will tender again, seeking new suppliers for the project.
Reports in Sydney say Government has already taken a $10 million bond posted by ITSL when it was awarded the contract in 2003, and that the government would also pursue the company through the courts to recover tax-payer funds that had been sunk into the project.
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