The WA government has joined other states in strongly criticising a new federal policy that would see the states pay at least half the bill for new infrastructure projects.
The WA government has joined other states in strongly criticising a new federal policy that would see the states pay at least half the bill for new infrastructure projects.
In a major funding overhaul, the federal government said it will contribute to major infrastructure projects on a 50-50 basis with states and territories.
Previously, many projects were entirely funded by the federal government or split 80-20.
Canberra will also shift its focus to delivering "nationally significant infrastructure", meaning projects must either support or align with broader national priorities, be related to the National Land Transport Network or key freight routes, or require a federal contribution of at least $250 million.
Federal Infrastructure Minister Catherine King made the announcement just over a week after an independent review found the federal infrastructure budget had blown out by $33 billion.
"Australia's infrastructure investment pipeline has become a house built on sand," she said on Tuesday.
"If we continue as we currently are, we cannot commit to any new projects for the next 10 years.
"We're not cutting funding, we're cutting the lies and we're cutting the waste."
The new ratio means federal and state or territory governments will carry an equal share of the benefits and risks involved.
"This is not about saving money - it is about shared accountability and maximising our investments," Ms King said.
"What we are doing is ending the perverse incentives that saw the federal coalition throw money at projects that states did not want to build - and then they simply never happened."
Under the previous government, the number of infrastructure projects ballooned from 150 to 800.
Opposition regional development spokesman Darren Chester said it would be the start of a major cost shift onto local councils and ratepayers.
"We used the 80-20 model to bring forward massive improvements to the Bruce Highway in Queensland, Pacific Highway in NSW and the Princes Highway in Victoria," the former coalition government transport minister said.
"None of those life-saving and nation building projects would have proceeded if we had tried to get the respective state governments to split the bill 50-50."
WA transport minister Rita Saffioti said she was “deeply disappointed” with the approach being put forward by the federal government.
“There has been a long-standing policy that the federal government funds major regional infrastructure projects on an 80:20 basis,” she said.
“I understand many of the projects funded via this funding ratio in the eastern states were not of national significance.
“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 continue to advocate for a fair share of federal funding, including 80 per cent of funding for WA projects of national significance.
Queensland Premier Annastacia Palaszczuk said she was not happy with the changes.
"For a decade Queensland was ripped off by the former coalition government, which meant our government has done the heavy lifting."
Ms Palaszczuk said the changes would cut the state's infrastructure projects, increasing inflation and lower productivity.
"Right now, Queensland needs more infrastructure, not less," she said.
NSW Premier Chris Minns echoed a similar sentiment.
"I'm not going to gild the lily here, that's a major concern for the NSW government," he told ABC radio.
Mr Minns said his state would be hard hit because it would soon be "worse off" on GST payments after Canberra's deal with Western Australia and paltry GP funding meant patients flocked to state hospitals.
Victorian Premier Jacinta Allan said the state would keep pushing the federal government to chip in on the cost to build the $34.5 billion Suburban Rail Loop, after it had only committed $2.2 billion to the mega project so far.
"Whether it's city or country projects, it's all about ensuring that we get a fairer share," she said.
With AAP
