Metro-net gets $1bn boost as Federal Government prepares to axe infrastructure projects Dan Jervis-Bardy and Josh ZimmermanThe West Australian
Wed, 15 November 2023 9:01PM Comments
Metronet will get a $1 billion boost from the Federal Government under a major reset of its infrastructure program, which will likely include stripping funding from more than 80 projects across the country. Credit: Daniel Wilkins/The West Australian
Metronet will get a $1 billion boost from the Federal Government under a major reset of its infrastructure program, which will likely include stripping funding from more than 80 projects across the country.
In a surprise win for regional WA, the Commonwealth will also tip an extra $200 million to seal the Tanami Road.
Infrastructure Minister Catherine King will announce the extra funding on Thursday as she finally releases the independent review of the Commonwealth’s $120 billion road and rail pipeline.
An executive summary of the review, supplied to The West Australian, recommends that 82 projects which are yet to start construction be axed and a further 36 sent back for “rescoping”.
The nine-page summary doesn’t list the projects — with Ms King to release those details on Thursday morning.
The announcement comes after WA Transport Minister Rita Saffioti blasted the Federal Government’s new approach for funding future infrastructure projects, which will ask the States to split costs 50:50 with the Commonwealth.
“We believe an 80:20 (split) for national highway projects is a better fit for WA and I’m deeply disappointed they’re going to a 50:50,” Ms Saffioti said.
The Albanese Government is resetting the infrastructure pipeline after the independent review concluded it would be impossible to deliver all planned projects with the allocated $120b. The announcement comes after WA Transport Minister Rita Saffioti blasted the Federal Government’s new approach for funding future infrastructure projects, which will ask the States to split costs 50:50 with the Commonwealth. Credit: Daniel Wilkins/The West Australian
The pipeline ballooned to roughly 800 projects under the Coalition, tripling in number between 2015 and 2022.
The review uncovered an estimated $32.8b in “known” cost blowouts — which the Commonwealth can’t afford to cover without significant changes.
It found the existing pipeline included projects that lacked merit and “national strategic rationale”, while in some cases Commonwealth funding was committed before detailed planning and costings had been completed.
Ms King has been sitting on the review since August, using the past three months to hold talks with the States and Territories about the future of their projects.
As part of a reset of the pipeline, the Government will tip in at least $6.2b extra into major projects across the country — including the Metronet rail network and upgrading the Tanami Highway through the NT and WA.
The West Australian understands the $1b contribution to Metronet reflects cost escalations that were not funded in the Albanese Government’s first two budgets, despite a commitment from the Commonwealth to fund half the cost of the relevant projects.
The total cost of the Commonwealth’s share of those Metronet escalations is closer to $1.3b — meaning the WA Government remains around $300m short of the funding it expected and has budgeted to receive for those works.
In addition, The West Australian understands the WA Government is yet to secure a commitment for an extra $600m, representing the Federal Government’s share of cost blowouts to 32 joint-funded road projects.
The review recommends States and Territories, in consultation with local councils, provide the Commonwealth with an annual infrastructure plan which identifies which projects it wants funded in the coming decade.
The WA Government has been confident the State’s projects would emerge largely unscathed from the review after escaping the major cost blowouts seen on the East Coast.
However, The West understands there are fear a range of local road upgrades and improvements could lose funding.
The Cook Government is also up in arms about the Federal Government’s push to get the States to stump up a greater share of project costs.
Under a new funding model, which was informed by the review, the Commonwealth will look to only invest in projects worth at least $500 million and ask States to split costs 50:50.
Under questioning from WA Opposition Leader Shane Love in Parliament on Wednesday, Ms Saffioti criticised the Federal Government’s approach.
“We are a growing State, we are a development State (and) our infrastructure projects help connect new economic opportunities, help drive national income,” she said.
Infrastructure Minister Catherine King will announce the extra funding on Thursday as she finally releases the independent review of the Commonwealth’s $120 billion road and rail pipeline. Credit: News Corp Australia
Ms Saffioti said 30 per cent of Australia’s national highways ran through WA, “facilitating billions of investment, billions in royalty income to the Federal Government, billions in company tax”.
Civil Contractors Federation WA chief executive Andy Graham said the new model cast doubt over regional road projects, which had typically relied on an 80 per cent Commonwealth contribution.
“That $500 million threshold will be extremely hard to achieve in WA for anything but major metropolitan projects, though there is some wriggle room that may allow funding of smaller projects at the Federal Government’s discretion,” Mr Graham said.
The independent review does recommend “significantly” increasing funding to local councils through the Commonwealth’s Roads to Recovery program, as well as more cash to upgrade black spots.
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