Funding for four major regional WA road projects is among 50 infrastructure deals scrapped by the federal government due to cost blowouts.
Funding for four major regional WA road projects is among 50 infrastructure deals scrapped by the federal government due to cost blowouts.
The decision comes more than 100 days after the federal government was due to reveal which of the former government’s commitments would face the axe under moves to reign in a reported $33 billion in blowouts to the $120 billion infrastructure pipeline.
Federal infrastructure minister Catherine King on Thursday revealed WA had been spared the brunt of the cuts, but confirmed five road and rail projects would no longer be funded.
“We now have a forward plan of projects that are properly planned and targeted to unlock significant economic, social and environmental objectives,” she said.
“As part of responding to the findings of the (infrastructure) review, the Government has made necessary decisions to no longer provide funding at this time to some projects.”
The WA projects to be stripped of federal funding are:
- Marble Bar Road upgrades ($48m)
- Moorine Rock to Mt Holland Road upgrades ($96m)
- Pinjarra Heavy Haulage deviation ($200m)
- Great Southern Secondary Freight Network ($6,4m)
- Future Perth road and rail planning study ($25m)
At $250 million, the Pinjarra project was the costliest WA build dumped from the federal agenda.
Among major projects spared were sealing of the Tanami Road and Manuwarra Red Dog Highway, the Bunbury Outer Ring Road, and Metronet.
Metronet was awarded an extra $1 billion and the Tanami an extra $200 million.
Civil Contractors Federation WA chief executive Andy Graham said the state appeared to have been a net beneficiary of the review.
"Although the reality is that around $400 million in funding for upcoming projects has been cut, leaving a big hole in the pipeline of work for our industry," he said.
"Clearly, all the de-funded projects need to happen; Main Roads doesn’t waste its time planning projects that aren’t needed.
"The Marble Bar Rd upgrade in particular is desperately needed. There’s 100km of gravel road that’s a major freight route and needs constant maintenance."
The axing of WA country road projects comes days after Grattan Institute research revealed the federal government was falling well short on requirements to fund regional road infrastructure.
That research highlighted a $1 billion shortfall in funding just to prevent roads deteriorating further, let alone funding improvements.
It echoed similar data revealed this year by the WA Local Government Association which found more than 20 per cent of regional WA sealed roads were in desperate need of attention.
WALGA president Karen Chappel on Monday said local governments were already scaling back road projects prior to today’s announcement.
Thursday’s announcement comes hot on the heels of Ms King telling state governments they would now need to stump 50 per cent of funding for infrastructure projects.
That decision was met with scorn from WA transport minister Rita Saffioti, who said the 80:20 split was fair for national highways.
“I understand many of the projects funded via this funding ratio in the eastern states were not of national significance,” she told Business News.
“However, in WA we have almost 30 percent of the national highway network and almost all our major regional road projects are on this network.
“These national highways are critical to the national economy. They underpin major economic investments, support major resource projects, and are essential for the agriculture industry.”
Ms Saffioti said the WA government would advocate for a fair share of federal funding, including 80 per cent of funding for WA projects of national significance.
