Commonwealth pulls support for projects, including Inland Port

The federal government has announced its withdrawal of support for projects across the nation following the release of the independent strategic review of the Infrastructure Investment Program.

Among the projects the Commonwealth has decided to pull its support from include the Northern NSW Inland Port in Narrabri.

The proposed industrial precinct and freight exchange was given a kickstart by the former state government, through its Growing Local Economies Fund, for the Culgoora Road project.

The NSW government at the time announced an almost $17 million investment into stage one of the proposed development.

The Inland Port was promoted at the time of the announcement as the premier industrial and logistics hub development in North West NSW.

Addressing the review of the national program, Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King said many projects lacked proper planning, didn’t have informed costings and weren’t ready for Commonwealth investment.

“The review has found an estimated $33 billion in nine cost pressures across all projects in the program with a high risk that that figure would increase, and for those not currently under construction that figure the report says is around $14.2 billion,” she said.

“Some are projects … have been subject to the hard decision of not investing Commonwealth funding at this time. These decisions do ensure that the investment pipeline from the Commonwealth remains affordable, delivers better outcomes for the Australian people in the long term and are aligned with government priorities.

“The government is committed to delivering infrastructure that builds Australia and builds lives. The review of the Infrastructure Investment Program and the government’s response allows us to get on with the job of delivering infrastructure that creates jobs, helps wages to grow and to make our communities better to live in and more connected for all of us.”

Last week’s announcement was met with concern from regional mayors and parliamentarians.

Member for Parkes, Mark Coulton said after taking more than double the expected 90 days, the Labor government’s Independent Strategic Review of Infrastructure has now been released, with key infrastructure projects for both the Parkes electorate and the nation cut from funding.

“I’m furious that the Labor government has stripped the guts from projects which would have secured immense benefits for both the Parkes electorate and the rest of the country,” Mr Coulton said.

“The Minister for Infrastructure has seen fit to cut the Moree Intermodal Overpass and the Northern NSW Inland Port at Narrabri which are crucial elements of the Inland Rail.

“I’ve just had to call the mayors from these areas to let them know that all of the investment and planning put into these expected projects will now grind to a halt, shattering these areas’ projections for growth and development.

“People have staked their livelihoods on the reliability of the Inland Rail as a future driver for growth, as its’ purpose is to connect the productivity of inland New South Wales with the rest of the country.

“To have these key pieces in the puzzle effectively scrapped is devastating.”

Narrabri Shire mayor Cr Darrell Tiemens said regional communities are tired of being caught up in the cross-fire between federal and state governments.

“While we are trying to plan for the longterm future of our local communities and towns, various levels of government keep shifting the goal posts,” Cr Tiemens said.

“This short-term thinking by governments of all persuasions needs to end.”

NSW Country Mayors Association chairman, Gunnedah Shire mayor Jamie Chaffey said the decision will have a dramatic impact on productivity in regional and rural communities.

“Financial sustainability of our councils, coupled with a strong focus of maintaining rates, fees and charges at an affordable level for our residents are all under threat with the announcement from the Labor government that all future Commonwealth funding will require a 50 per cent contribution from local government for any joint project.

“Historically, most projects have been funded at a rate of 80 per cent Commonwealth and 20 per cent local government.”