NSW infrastructure not keeping pace with migration as Albanese govt urged to pay up

The Albanese government has been urged to cough up after data showed NSW needs billions of dollars in infrastructure funding to keep pace with record migration.

• NSW road deaths soar

An extra $18.6 billion in infrastructure spending would be needed to keep pace with record migration to NSW in the year to September last year, with the Albanese government now being urged to pay the state government a flat fee for each new person that settles here.

The eye-watering infrastructure bill required to keep pace with migration comes as Premier Chris Minns called for the Commonwealth to give NSW a bigger share of federal funds because “we take the largest number of inbound migrants”.

The Commonwealth government is already under fire for axing contributions to a number of crucial road projects in Sydney’s west, including the M7-M12 interchange, upgrades to Mulgoa Road, and planning funding for seven “priority” roads around the new Western Sydney Airport.

Migration-led population growth is set to only increase the burden on existing roads, which are now more congested than the CBD, according to the latest NRMA congestion report.

Macrobusiness Chief Economist Leith van Onselen on Tuesday said that each additional person added to Australia’s population is estimated to require around $100,000 in infrastructure investment to keep the “standard of living” stable.

Net overseas migration added 186,433 people to the NSW population in the year to September.

“Based on NSW’s population growth of 186,000 last year this implies that around $18.6 billion worth of investment could be required over those residents’ lifetime,” Mr van Onselen said.

Fifteenth Ave on the edge of Middleton Grange is the only road in and out after the federal government pulled funding from upgrades. Picture: John Appleyard

Mr van Onselen said the federal government should be forced to fund the states to cover the infrastructure burden of new migrants.

“The federal government gets all the benefits from migration through extra personal income tax receipts and extra company tax receipts, but the costs of migration fall on the state governments,” he said.

“If they want to run a big migration program, they should provide direct funding to the states in proportion to the number of new residents that land in those states,” he said.

“It would force the federal government to weigh the costs and benefits of migration because at the moment, all it sees is benefits and no cost.”

It comes after western Sydney mayors blasted the state and federal governments for delivering a double blow of population growth without new infrastructure spending.

Liverpool Mayor Ned Mannoun. Picture: Monique Harmer

Liverpool Mayor Ned Mannoun last month said his area was at “breaking point,” with 500 people moving into the southwest “every week”.

“We like immigration, but we want the actual infrastructure to go for it and the Feds to pay for it,” he said in March.

The state government is currently in negotiations with the Commonwealth over roads funding in the hope of getting more cash to fund crucial upgrades.

“We are continuing to have positive discussions about a number of roads projects, including important upgrades around the airport such as Mulgoa Road and Elizabeth Drive,” Roads Minister John Graham said.

“Discussions also continue on a broader package to address the needs around new housing supply as well as the new airport.”

Those comments come as the Premier argued has a “strong case” for the federal government to chip in for “major arterial roads” around the Western Sydney Airport.

“We take the largest number of inbound migrants and as a result of that we need more help from the Commonwealth Government,” Mr Minns said.

Karen Korkis with her daughter Alyssa Korkis. Picture: John Appleyard

As revealed by the Telegraph on Monday, Infrastructure Minister Catherine King scrapped planning funding for seven roads around the new airport just seven months after an independent panel declared them a “priority”.

One of those roads, Fifteenth Ave, is nearby to the growing suburb of Middleton Grange.

Karen Korkis has lived in the suburb for two years and said traffic has gotten “progressively worse” in that time.

“My husband leaves at 4.30 in the morning to get to work at North Sydney – it’s just gridlocked,” she said.

She said the roads around the suburb needed desperate upgrading to deal with the influx of traffic from the booming population.

Another resident, teacher Sean Griffiths, said John Bradfield – the visionary behind the Sydney Harbour Bridge who the aerotropolis city centre is named after – would be “turning in his grave” over the lack of planning in the western suburbs.

Middleton Grange resident Sean Griffiths. Picture: John Appleyard

Middleton Grange resident Sione Siaki. Picture: John Appleyard

“I have no problem having people come to Australia – but plan for it. (John Bradfield would) be turning in his grave, seeing the way we plan things.”

Sione Siaki is another local who says the clogged roads have turned daily commutes into a nightmare.

“If I drive to get the sister to school or work, and you’re not out of here by at least 7.40am, you’re going to be queuing up,” he said.

The Telegraph asked eight Labor MPs from western Sydney whether it was “fair” that the federal government is cutting road funding to the region while overseeing record migration growth.

Energy Minister and McMahon MP Chris Bowen said the government was “investing more than $14 billion in transport infrastructure” in Sydney’s west.

Education Minister and Blaxland MP Jason Clare said: “The Albanese Government is funding infrastructure projects in my community and taking action to reduce migration levels.”

Workplace Relations Minister and Watson MP Tony Burke blamed the former government for not spending more. “Now there’s finally some money going into Stacey Street, Canterbury Road and King Georges Road,” he said.

Industry Minister and Chifley MP Ed Husic said the “biggest issue” for his community is “widening Richmond road, which the Minns government has committed to doing.”

Parramatta MP Andrew Charlton said that his electorate “can’t support more people without more infrastructure”.

“I’m glad to see the Albanese Government work with the Minns NSW Government to deliver vital infrastructure projects for Parramatta.”

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