16 October 2022
The Albanese Government has confirmed that key infrastructure projects will be slashed or reprofiled to help prop up the Victorian Labor Party’s central election promise – the Melbourne Suburban Rail Loop.
The Federal Labor Government warned today that this month’s Budget would re-profile major infrastructure projects, axing many altogether – decisions that would result in disadvantaging New South Wales, while forging ahead with a federal contribution of $2.2 billion for the Melbourne Suburban Rail Loop.
Labor has also confirmed that billions of dollars earmarked for infrastructure projects in regional Australia will be axed in the Budget but is yet to declare which projects will not survive or nominate which projects constitute “waste”.
Opposition Infrastructure, Transport and Regional Development spokeswoman Bridget McKenzie said it appeared that Victoria had been allocated a $2.57 billion windfall in this month’s Budget, while Australia’s most populous state, New South Wales, would receive $1 billion in new funding.
“The Coalition Government has a proud record when it comes to infrastructure spending, increasing the federal infrastructure investment pipeline at the March Budget to $120 billion to create new jobs, keep people and freight moving and driving economic growth,” Senator McKenzie said.
“This Budget is shaping up as a politicised Budget to support Dan Andrews re-election campaign.
“The only cuts they are making, supposedly to improve the Budget bottom line, are in regional programs.”
Senator McKenzie said there was continuing uncertainty about regional funding with the Minister, Catherine King, declaring that the new Government was supporting some projects but not others.
“We are disappointed on the lack of clarity on regional spending programs,” Senator McKenzie said.
“The feedback from travelling across the country shows that hundreds of local communities are deeply concerned that their important projects, which they have applied for in good faith, were being branded as “waste”.
Federal Infrastructure, Transport and Regional Australia and Local Government Minister Catherine King confirmed today on the ABC’s Insiders program today that Labor would back the proposed Melbourne Suburban Rail Loop in the Budget even though Infrastructure Australia had not yet made an assessment on the project’s merits.
“The Victorian Auditor General has already lambasted the project, which could ultimately cost at least $125 billion to build, as “failing to demonstrate an economic rationale”,” Senator McKenzie said.
“The Federal Government’s decision to pour $2.2 billion into the Suburban Rail Loop after the business case was highly criticised by the state auditor and before Infrastructure Australia has had the opportunity to look at its merits, shows that its prime motivation is to support Dan Andrews election campaign.”
“In his Budget-in-Reply last year Anthony Albanese promised that all projects must “really stack up against the Infrastructure Australia model” but is now reversing this by pushing ahead based on a highly critical state auditor business case.”
Senator McKenzie said the Albanese Government was also walking away from a Coalition Government funded commitment to support the regions as Australia moves toward a net zero economy by 2050.
“In the March Budget the Coalition backed regional communities with a range of long-term programs enabling them to take advantage of the opportunities and meet the challenges that will come their way,” Senator McKenzie said.
“Meanwhile, the Labor Party has increased the trajectory toward net zero, while simultaneously decreasing investment in those communities likely to be most impacted.”