Major NSW projects in limbo as federal government looks to cut spending

As many as 95 major infrastructure projects across NSW, including highway upgrades, Sydney Metro and major tunnels, could face the chop after a snap audit was announced to reduce government spending. SEE THE LIST.

The Sydney Metro (main picture) in western Sydney, the upgraded Great Western Highway between Katoomba and Lithgow with an 11-km road tunnel (top left) and the Milton-Ulladulla bypass (bottom left) are among the big projects under review under the Anthony Albanese (right) government's snap audit. Pictures: News Corp

As many as 95 major infrastructure projects across NSW including highway upgrades and road safety programs could face the chop after federal Infrastructure Minister Catherine King announced a snap audit Monday as the government looks to rein in spending.

The Daily Telegraph can reveal that Commonwealth funding for a swath of projects including $1.6 billion to help build an extension of the M1 to Raymond Terrace between Newcastle and Port Stephens, $550 million for a New England Highway-Singleton bypass in the Hunter Valley, and $336 million to upgrade the Pacific Highway around Wyong is all under review.

Other projects being re-examined include everything from upgrades to the treacherous junction of Mount Ousley Road and the Princes Motorway to a variety of intersection and roundabout upgrade projects across the state.

A number of road safety programs could also be on the chopping block, including NSW’s Regional Road Safety Program which had a $407 million funding commitment from the federal government.

While all projects in the federal government’s 10 year, $120 billion Infrastructure Investment Program pipeline are theoretically subject to review, Ms King has indicated that projects announced as Labor campaign commitments will not be scrapped.

Catherine King announced a snap audit which could see as many as 95 major infrastructure projects across NSW get the chop. Picture: NCA NewsWire / Gary Ramage

Speaking to the ABC Wednesday, Ms King said that the government was “obviously honouring to deliver those (projects)” which Labor had committed to before the election.

“Any comments I made during election campaigns about bringing projects forward, we’re honouring all of those,” she said.

Around 20 projects in NSW are understood to be not under review as they were Labor campaign promises.

These include a $500 million spend to develop a high speed rail corridor between Sydney and Newcastle, and $17.4 million for an upgrade to the Brindabella Road linking Canberra with Tumut in the Riverina.

The planned infrastructure cuts come as the country plans to welcome a historic influx of new migrants, including as many as 650,000 over the next two years alone.

They also come just days after Prime Minister Anthony Albanese was heckled in Tasmania on the weekend by protesters angry the government was committing $240 million to help build an AFL stadium in Hobart in the midst of a housing crisis in that state.

Shadow Infrastructure Minsiter Bridget McKenzie said news of the audit was a terrible blow to NSW.

“We are concerned that two thirds of the cuts are in regional NSW, where we have projects like extensions of the M1 Highway, improvements to the Great Western Highway, the Dubbo Bridge, and the Singleton Bypass are all potentially facing the axe while the prime minister is funding stadiums in Hobart,” she said.

“They have threatened almost 100 congesting busting, productivity enhancing and safety improving projects.”

“Labor is also taking the people of Sydney for mugs expecting them to believe they can bring in hundreds of thousands of new immigrants with nowhere to live and clogged suburban streets - it’s a recipe for disaster.”

However Infrastructure Minister Catherine King’s office defended the audit, saying that it was responsible to ensure that infrastructure projects were “genuinely nation-building, economically sustainable and resilient to our changing climate.”

Bridget Mckenzie isn’t happy with the audit. Picture: NCA NewsWire / Gary Ramage

“A properly functioning infrastructure investment pipeline means projects can be delivered with more confidence about time frames and budgets,” Ms King said.

“Easing the pressure on the construction sector will help drive inflation lower and deliver more predictable investment and delivery outcomes from governments.

“Communities will benefit from national significant infrastructure with shorter and safer travel, more liveable cities, suburbs and regions, while the economy benefits from the certainty brought by a smoother delivery of investment matched to project timelines.”

PARKWAY SNUB IN FUNDING FAVOURS

Northern Beaches residents were told by the Albanese government last October that vital funding to help upgrade the Wakehurst Parkway would be withheld because it was a state responsibility, despite federal funding being earmarked for a similar project in a neighbouring Labor electorate just three months later.

Independent Mackellar MP Sophie Scamps made the claims amid rising concern that the government is planning to slash billions of dollars in infrastructure projects to stem growing budget shortfalls.

“We have met with people at levels of government and they all agree it ticks all the boxes for being high priority,” Ms Scamps said of works to keep the Wakehurst Parkway from being closed due to flooding several times a year cutting off commuters from the city and patients from the local hospital.

“But we were told after a number of meetings with ministers that there wouldn’t be any money for a state road because they don’t fund state roads.”

Independent MP Sophie Scamps says the Albanese government pulled funding for the Wakehurst Parkway. Picture: Justin Lloyd.

Last October, the federal government dropped its earlier $75 million commitment to upgrade the Parkway, which is a vital link for the Northern Beaches.

The following January, Prime Minister Anthony Albanese announced $70 million in additional funding to upgrade Avoca Drive in the neighbouring Labor-held seat of Robertson on the Central Coast.

At the time, federal Infrastructure Minister Catherine King said, “The Australian Government remains committed to working collaboratively with state, territory and local governments in working towards Vision Zero: zero deaths and serious injuries by 2050.

“Upgrading Avoca Drive will make this busy road safer for residents and visitors alike.”

The $70 million was in addition to $30 million the government had previously pledged to improve conditions on Avoca Drive.

“People in Mackellar will be asking lots of questions as to why a state road was funded just north of here while decade after decade (the Wakehurst Parkway) has not been funded,” Dr Scamps said.

“I ask, what was the $100 million for a road in Robertson just north of here for?”

Ms Scamps said the only way forward was for infrastructure projects to be lifted out of the realm of politics.

“What I want to see going forward is an independent process for assessing projects so that money is allocated according to need”.