Federal budget 2023: Extra North-South Corridor funding secured, despite national review

The federal government will maintain a 50:50 funding split with SA for the final stage of the North-South Corridor, even with a higher price and new national infrastructure review.

• Cash roadblock could put major projects at risk

The federal government has promised to uphold a 50-50 funding deal with SA for the final stage of the North-South Corridor, despite the project’s budget blowing out to $15.4bn.

Questions will be raised, however, over future investment in SA road projects as federal Infrastructure Minister Catherine King announces details of a major review on Monday that paves the way for cuts or construction delays to roads not deemed nationally significant.

While Labor remains committed to spending $120bn on infrastructure nationwide over the next decade, it will launch a 90-day review to identify problem projects that are not adequately designed.

It means any funding changes to affected road programs will be deferred until well after the May 9 federal budget.

“It is time to clean up the mess left by the Liberals and Nationals clogging the pipeline with ‘press release projects’ – announced but unable to be delivered,” Ms King said.

Catherine King blamed Coalition projects for the review.

SA Liberal senator Simon Birmingham said the review was a “cruel blow”.

SA Liberal senator Simon Birmingham said the review, first revealed last Friday, only created “huge uncertainty” and was a “cruel blow” to the state’s civil construction sector.

“Labor will be exposed as taking South Australia for granted if we face cuts or delays instead of getting our fair share of infrastructure funding in this year’s Budget,” he said.

Projects already under construction will not be cut and those that Labor promised to complete as election commitments will also be saved, meaning the Torrens to Darlington – the biggest infrastructure project in SA’s history – will go ahead as planned.

The $400m Marion and Cross roads level crossing removal will also continue, as Labor promised to front up half of the bill as an election commitment.

The Malinauskas government redesigned the Torrens to Darlington project.

Ms King’s office confirmed the federal government would maintain the 50-50 funding split with SA for the Torrens to Darlington project, which increased in cost from $9.9bn to $15.4bn after the Malinauskas government redesigned it last year.

State Infrastructure Minister Tom Koutsantonis said the Albanese government had “repeatedly expressed its commitment” to completing the project.

“We have no concern whatsoever that there will be any impact on the scope or timing of the River Torrens to Darlington project, with early works including the resurfacing of South Rd set to commence in coming days,” he told The Advertiser.

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