Beaches Link on the backburner with ministers divided on infrastructure ‘mega-projects’
The Infrastructure Minister has conceded it’s “exactly the wrong time” to be taking on projects like the Beaches Link tunnel, while a colleague is keen to forge ahead.
NSW
Don't miss out on the headlines from NSW. Followed categories will be added to My News.
The Beaches Link tunnel is set to be put on the backburner amid fears the global skill and supply shortage could increase its $11bn price tag, with the state government opting instead for smaller projects which could favour local suppliers.
Despite Infrastructure Minister Rob Stokes declaring that the government is still “committed” to the Beaches Link, further delays raise questions about whether the troubled tunnel will ever be built.
The Daily Telegraph understands that certain mega-projects, which Infrastructure NSW said this week should be “reconsidered”, are set to be delayed in favour of smaller initiatives that can be built faster for less money.
“You can have it all, but you can’t do everything at the same time without paying a significant premium,” Mr Stokes said in response to the major Infrastructure NSW report.
“Now is exactly the wrong time to take on the biggest mega-projects.”
Skills and supply chain sources would make multi-billion dollar projects significantly more expensive than they need to be, making smaller initiatives more attractive.
Some of the smaller projects being favoured by the government include regional road projects costing between $100m and $500m, the Telegraph understands.
Water infrastructure could also be prioritised.
Planning work for the Beaches Link is still going ahead even though the tunnel is set to be delayed.
Another mega-project which could be put on ice is the M6 motorway stage two extension from Kogarah across the Georges River to connect to the Princes Highway at Loftus.
Labor Leader Chris Minns accused the government of effectively cancelling major projects by putting them on hold.
“Delays for many people equal cancellations because they’ve made investment decisions,” he said.
MINISTER SLAMS TALK OF CANNING MEGA-PROJECTS
Transport Minister David Elliott has slammed suggestions that major infrastructure projects like stage two of the Parramatta Light Rail and the Beaches Link should be delayed or cancelled.
Mr Elliott’s comments come the day a key report from Infrastructure NSW was released saying major projects should be shelved in favour of smaller projects with “less budget and delivery risks”.
But the Transport Minister bashed the suggestions on Tuesday, saying now was the time to be “courageous” and forge ahead with the mega-projects on the government’s books.
“I look at the commentary around at the moment that we need to put the brakes on providing ongoing support to our transport portfolio, that we need to put on the caution lights. But that’s exactly what we shouldn’t be doing,” he told a Property Council breakfast on Tuesday.
“We should not be suggesting that smaller projects versus larger projects are less challenging because they are just as challenging, if not more challenging.”
The comments are at odds with Infrastructure Minister Rob Stokes, who told The Telegraph that although the government remains “committed to all projects”, major proposals could be delayed.
“We must now consider the advice from Infrastructure NSW in relation to how we sequence our record infrastructure pipeline in light of the extraordinary global headwinds,” Mr Stokes said.
Mr Elliott said the state should instead forge ahead with major projects, adding the NSW Government was “very much committed” to building Parramatta Light Rail’s stage two among other huge developments.
While he didn’t outline a timeline for the next major announcement on the key western Sydney project, he said there’d be “further announcements about that in due course”.
He also waded into the mothballed New Intercity Fleet, which remains in storage amid a dispute between the government and the union, who refuse to operate the trains until alterations are made to them.
Harking back to an explosive press conference in which Treasurer Matt Kean and employee relations Minister Damien Tudehope vowed the government wouldn’t back down to demand from the unions, Mr Elliott said he was confident an agreement would be reached which would see the trains servicing the Sydney to Newcastle route within three months.
“Despite a few hiccups with one or two of my parliamentary colleagues, I believe we’ll be on track within three months with at least one or two services operating…,” he said.
In a wide-ranging address, Mr Elliott also threw his support behind high density housing around transport hubs, but said he was concerned dodgy builders had eroded faith in tower living in Sydney.
“I actually worry that the reputation of two or three developers and builders will completely destroy the reputation of high density housing in the city,” he said.
It comes as infrastructure mega-projects like the Beaches Link and the Parramatta Light Rail extension should be “reconsidered,” Infrastructure NSW has declared, paving the way for a major government reversal on key projects.
The latest State Infrastructure Strategy report, delivered every five years, has called for smaller investments to be prioritised over major projects that “are likely to face significant delivery challenges in the near to medium term”.
The Infrastructure NSW report has called for the government to “reconsider the timing and need” for major projects including the Beaches Link, Parramatta Light Rail Stage 2, the Katoomba to Lithgow tunnel, regional major dam projects, and further stages to Sydney Metro and rail projects.
“The state government should reconsider the urgency for these projects,” the report found.
Premier Dominic Perrottet has previously indicated that the Beaches Link and Parramatta Light Rail extension could be reassessed amid increasing costs, despite the government previously committing to the projects.
As recently as December, Infrastructure Minister Rob Stokes pledged that the Beaches Link would be delivered.
“That’s the commitment that has been made repeatedly to the people of the Northern Beaches,” Mr Stokes told 2GB in December.
“We are keen to get on with it.”
Infrastructure NSW Chairman Graham Bradley told The Daily Telegraph that overcomitting to major projects would make it “very challenging” for the government to deliver everything it has promised.
Skills shortages risk the government “not being able to deliver these projects as cost effectively as you would want to,” he said.
“More of the focus over the next five to 10 years should be on getting smaller to mid sized projects more quickly delivered,” he said.
Mr Stokes told The Telegraph that the government remains “committed to all projects” but indicated major proposals could be delayed.
“We must now consider the advice from Infrastructure NSW in relation to how we sequence our record infrastructure pipeline in light of the extraordinary global headwinds,” he said.
It has previously been estimated that the Western Harbour Tunnel and Beaches Link could cost up to $14 billion.
The government committed $50 million to fund a business case for stage two of the Parramatta Light Rail, which is nearing completion.
Infrastructure NSW’s report, outlining its advice for the next 20 years of infrastructure investment, also calls for the government to “sustain high levels of infrastructure funding,” including through cash gained from asset recycling.
Meanwhile, the report also calls for resilience infrastructure to be sped up, including the Warragamba Dam Wall raising.
It calls for more investment in infrastructure to support more housing supply including in the North West and the South West. Infrastructure NSW has also called on the government to deliver more housing, jobs, amenities and services where they can be supported by planned infrastructure.
Property Council of Australia NSW Executive Director Luke Achterstraat said that enabling infrastructure was one of the biggest levers the state government needed to pull to deliver more homes for its citizens.
“It has been encouraging to see the government identify there is a housing crisis in NSW and more homes can only be built if there is enabling infrastructure and certainty provided to industry,” he said.
“Housing supply and affordability remains a challenge with NSW still some 100,000 homes short of we need to be.”
David Borger, the executive director of Business Western Sydney, said the shelving or delay of projects in the city’s west shouldn’t be done at a time when the region was undergoing booming population growth.
“Western Sydney needs infrastructure. We cannot afford for the NSW Government to put its foot on the brake when Sydney’s western suburbs continue to be called on to support the growth of our city,” he said.
Join the conversation
Jewish community hosts vigil to remember terror victims
An early morning vigil has been held at Bondi Beach on the anniversary of October 7 Hamas Terror attack in Israel. Members of the Jewish community, dignitaries, MPs and survivors were in attendance.
Read more
Fears October 7 anniversary could ignite unrest in Sydney
Fears of unrest in Sydney consume the first anniversary of Hamas’ terror attack, after pro-Palestinian protesters swarmed the CBD on Sunday, taking aim at state and federal politicians.
Read more