Federal Government withholds cash for Gawler electrification until business case is approved, despite SA State Budget announcement
THE Federal Government is refusing to commit funding for the Gawler railway line electrification until a “proper assessment” has been conducted – despite the project included in the latest State Budget.
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THE Federal Government is refusing to commit funding for the Gawler railway line electrification until a “proper assessment” has been conducted.
A spokesman for Federal Urban Infrastructure Minister Paul Fletcher said last week a business case was required from the State Government before it would commit to contributing half of the $462.5 million needed for the project.
The minister’s office attacked the timing in announcing the electrification within its 2017/18 SA Budget, calling it a “political stunt”.
It was a tactical move to force the Federal Government to cough up half of the cash, the spokesman said.
The SA Government announced the funding on the same day it called on the Federal Government to contribute half of the $462.5 million – and the same day it submitted an updated business case for the project to Mr Fletcher and Infrastructure Australia.
“It is unfortunate that on the very same day that the business cases were provided, the SA Government issued a press release demanding a commitment of hundreds of millions of dollars from the Commonwealth,” the spokesman said.
“This is nothing more than a political stunt,” the spokesman said. “As the SA Government knows full well, there must be a proper assessment of these business cases by the Commonwealth Government before any decision on funding could be made.
“As is the case for all projects seeking funding of more than $100 million … it will be necessary for the business cases to be assessed by Infrastructure Australia.”
The Gawler electrification was first announced in 2008, but delayed in 2013 after the Federal Government withdrew a previously committed $76 million.
The SA Government had submitted an initial business case to the Federal Government a few years ago, but – according to the ministerial spokesman – it had been “mismanaged and cancelled”.
Last month’s submission was the first update on the proposal since then.
An Infrastructure Australia spokesman said it would examine the latest business case, with an evaluation of the project’s cost, delivery and any risks it might pose. “The time frame for an evaluation depends on a range of factors, including the complexity and length of the business case, and the time the proponent needs to provide additional information or analysis in response to Infrastructure Australia’s questions,” the spokesman said.
Calculations have the total cost of the Gawler line electrification at $615 million – that includes the $152.5 million the State has already allocated for the Adelaide to Salisbury section of the stretch, and the extra $462.5 million it will cost to electrify the Salisbury to Gawler section.
The State Opposition spokesman on transport, David Pisoni, said the fact that the project has taken almost a decade to come to fruition was disappointing.
“We will be supporting the budget measure for the completion of the electrification, but I note that the budget measure relies on federal funding,” Mr Pisoni said.
“If elected next March, it will certainly be a priority for (the Liberal Party) to get access to our share of the $10 billion the Federal Government has allocated for rail projects.
Transport Minister Stephen Mullighan did not respond to questions before deadline.