Infrastructure boss Simon Draper warns NSW is taking on too many major projects
NSW’s own infrastructure boss has cautioned the government over committing to any more large scale infrastructure projects due to the skyrocketing price of materials and labour.
NSW
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NSW’s own infrastructure boss has called on the state Government to think “long and hard” before committing to any more major projects, as concerns mount over the skyrocketing price of construction materials and labour.
Chief executive of Infrastructure NSW Simon Draper told a Property Council lunch on Friday that the independent body had cautioned the NSW Government over committing to any more large scale projects.
“I’ll be quite candid that our advice to government is to think long and hard about a really big complex projects and the rate at which we put those in the market,” he said.
“Our advice would be, think more about mid-size projects and programs of small works.”
“We’ve got a lot of those (big projects) already happening – several Metro projects, road projects … that are (already) out there.”
It comes as both the government and industry voice concern over the booming cost of construction supplies worldwide, with Infrastructure Minister Rob Stokes on Monday saying the government had to be wary of “significant … price escalation”.
Mr Stokes, the former planning Minister until December’s cabinet shake-up, confirmed the government was assessing projects which are yet to be fully committed to – like the Beaches Link tunnel and stage two of the Parramatta Light Rail.
“We need to be very sensible and prudent in terms of the projects we now take on to make sure that we take them on at the right time to ensure that we can provide value to the taxpayer,” he said.
“We will look at all the projects that are currently awaiting investment decisions.”
Mr Stokes denied any projects in the government’s $110 billion infrastructure to-do list would be cancelled, but signalled they could be deferred until later.
“One of the challenges that we’re looking at in NSW and around the world is price escalation caused by supply chain blockages during Covid and challenges to the supply of key workers.
All of this is putting inflationary impacts on the cost of goods, plant, material and labour,” he said.
“We’re not looking at cancelling anything. Rather, what we are looking at is recognising that there are significant headwinds in terms of price escalation.
“We need to be prudent and we need to stage projects at the right time to ensure the right price and value to the taxpayer.”
Labor leader Chris Minns claimed on Monday the government’s “merry-go-round of infrastructure spending is about to stop”.
“Now it appears that the government’s infrastructure bonanza is coming to a standstill, right when Western Sydney needs its fair share of infrastructure spending,” he said.
When quizzed if Labor would commit to stage two of the Parramatta Light Rail, he said. “We’re looking at (it) very, very closely”, but said a commitment wouldn’t be made to building it until closer to the state election.
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