Budget ‘defers’ $900m in dam funding with no return in site

Hundreds of millions of dollars have been ripped out from major NSW infrastructure projects, with Prime Minister Anthony Albanese now set to stare down Premier Dominic Perrottet over regional dam funding.

Hundreds of millions of dollars have been ripped out from major NSW infrastructure projects, with Prime Minister Anthony Albanese now set to stare down Premier Dominic Perrottet over regional dam funding.

Money previously earmarked to build the Dungowan Dam and to raise the Wyangala Dam Wall is part of $900 million in water grid spending that the federal government is “deferring,” with no date set for the funding to flow.

The projects will be “reconsidered once business cases are completed and viable pathways to delivery are determined and assessed,” the budget papers state.

That is despite the Morrison government committing $433 million for the Dungowan Dam and Pipeline, in the state’s North West, in the March budget.

The deferral of funding for Dungowan and Wyangala dams was a result of the federal government’s budget Razor Gang, which identified $4.6 billion in cuts in the National Water Grid fund over 12 years.

The removal of the funding sets the Premier and Prime Minister on a collision course. Picture: Martin Ollman/Getty Images

Mr Albanese was already facing claims from state Treasurer Matt Kean that federal Labor was “dudding” NSW, when billions of dollars in infrastructure spending were foreshadowed earlier this month.

Infrastructure Minister Catherine King said the budget will “honour” promises to voters while carefully managing the economy.

Dam funding has become a major issue for the Perrottet government. Picture: John Grainger

“After discussions with the states and territories, some spending has been moved into future years when the market will have greater capacity to support elevated levels of investment,” she said.

As expected, there was also no money included to raise the Warragamba Dam wall.

Tuesday’s budget did confirm that the Albanese government will commit $500 million to start work on a high-speed rail link between Sydney and Newcastle. Road upgrades in Western Sydney will also get $300 million in federal funding.

The money is part of $1.4 billion committed to NSW infrastructure projects.

Budget papers commit $269 million in funding for the New England Highway – Muswellbrook bypass, and $110 million for the Epping Bridge.

Chalmer’s handed down his first federal budget on Monday night. Picture: Martin Ollman/Getty Images

The roads package is among the measures previously flagged ahead of the budget’s release.

Nationally, the Albanese government will spend $8.1 billion over 10 years for priority rail and road infrastructure. But while NSW will get $1.4 billion in roads and rail funding, Victoria will get $2.6 billion – including $2.2 billion for a Suburban Rail Loop. Queensland will also get more, with $2.1 billion in projects identified.

Ms King spruiked federal government investment in NSW which includes $5.25 billion to build the Sydney Metro to Western Sydney Airport, and $1.6 billion for the M12 motorway.

While money will be provided to upgrade certain roads in Western Sydney, motorists are set to pay more at the bowser to use them.

The petrol excise – which was temporarily cut in the lead up to the election – is set to earn $7.65 billion for the government by 2025/26. That’s up from the $5.6 billion it is set to raise this financial year.

A $350 million investment over five years to build 10,000 affordable homes could help struggling Sydney families find a place to live, but budget papers have also revised up the number of people expected to leave our state over the next five years.

While the March budget predicted 30,200 people would migrate interstate in this financial year, that has been revised up to a net loss of 31,300, with 22,500 people to leave each year until 2026.

The amount of GST payments NSW will receive from the Commonwealth in this financial year has been revised up slightly over the forward estimates. Our state expected to get $748 million more in GST payments this financial year than forecast in the March budget.

Bakewell Haulage warehouse operations manager Dean Ungaro welcomed spending on major road corridors.

The Wetherill Park-based business frequently receives and sends out trucks which then drive all over the state, with transiting western Sydney roads a key part of their business.

“(The extra funding on roads) helps our business – we get a lot of traffic flow through here,” he said.

“We get a lot of trucks through Wetherill Park and the roads indefinitely need to be maintained and upgraded with all the heavy vehicles coming through.”

Fuel costs were among the biggest challenges facing Sam Caminiti, a butcher in Sydney’s Inner West.

He said high fuel costs were increasing the costs of his deliveries, and reducing the number of customers that walk through the door.

“During Covid it was ok because a lot of people needed to cook at home, but now things have gone up and we’re struggling,” Mr Caminiti said.

“We’ve lost customers because no one wants to drive anymore, they’ll just do things online instead,” he said.