Future of infrastructure projects put under spotlight

Former WA bureaucrat Reece Waldock is one of three transport experts drafted in by the federal government to review its infrastructure pipeline and set new priorities.

Infrastructure Minister Catherine King said the review of the Infrastructure Investment Program would be undertaken over 90 days.

It will review projects announced by the former government and is expected to cull many smaller projects in favour of “nationally significant” projects.

“Under the Liberals and Nationals, the number of infrastructure projects in the pipeline blew out from nearly 150 to 800, but their appetite for announcing projects wasn’t matched with a commitment to deliver,” Ms King said in a statement.

“Projects were left without adequate funding or resources, projects without real benefits to the public were approved, and the clogged pipeline has caused delays and overruns in important, nation building projects.”

Ms King said about 160 projects had a commitment of $5 million or less.

“The proper management of the $120 billion infrastructure investment pipeline should lead to projects that are able to be built, that have a lasting benefit for Australia, and enhance our economic and social productivity and prosperity,” Ms King said.

The three-member review panel comprises Mr Waldock plus Clare Gardiner-Barnes and Mike Mrdak.

Mr Waldock jointly led the Department of Transport, Main Roads WA and the Public Transport Authority until his retirement in 2016.

He was a board member of Infrastructure Australia up to the end of 2021.

Mr Mrdak ran the federal government’s infrastructure and transport department up to 2020 and currently sits on several boards.

Ms Gardiner-Barnes was a senior planning and infrastructure adviser to the NSW government before setting up her own consultancy last year.

She was appointed an interim board member at Infrastructure Australia in December last year.

The review announced today adds to several major changes flagged by the Albanese government.

It is also making big changes at Infrastructure Australia, with plans to appoint three commissioners in place of the current board structure and tighten its focus.

That followed a five-month review led by Mr Mrdak and Infrastructure WA chair Nicole Lockwood.

Ms King said today some projects in the infrastructure pipeline had to be cancelled or delayed.

"A lot of them are completely underfunded, there's billions of dollars that are needed to actually deliver all of the projects in the pipeline," she told ABC Radio on Monday,

"That's new money we would have to find and we're just simply not in a position to be able to say today can we deliver each and every one of those projects and have we got enough money to do so."

The minister said she did not know the number of projects that could go, but the review would be made public.

"What I want to have very detailed knowledge of is with every single project that's in that pipeline at the moment is can it be delivered?" Ms King said.

Nationals senator Bridget McKenzie has hit out at the review, saying the government's "razor gangs" would be cutting critical infrastructure projects.

"Continually cutting back on infrastructure projects will be a handbrake on economic growth and a barrier to driving national efficiencies needed to support budget repair and tackling inflation," she said.

"At the very time when the government budget repair strategy should be to invest in productivity enhancing capital and cut back on unnecessary recurrent expenditure, Labor seem determined to do the opposite, dooming the nation to a slow and painful recovery."

Senator McKenzie said the review represented a loss for regional communities.

Ms King said smaller projects may be kept as part of the pipeline.

"Certainly it is my preference, that when we proceed with these infrastructure investments that there is a proper cost benefit analysis done," she said.

State and territory governments agreed to support the review at a meeting of national cabinet, with local governments to be consulted as the government considers priority projects and their ability to be delivered.

Infrastructure Australia forecasts as from May, there will be a shortage of about 95,000 workers on public infrastructure projects nationwide.

Industry Minister Ed Husic said while the previous government announced large amounts of projects as part of the pipeline, the infrastructure was never delivered.

"Being able to take a clearer view about whether or not these projects were actually going to deliver for communities and be able to make sure we've got the investment that supports communities is really important," he said.