NSW government divided on the future of major infrastructure projects
The NSW treasurer says the state coffers have been depleted by $10 billion because of the coronavirus, putting the Powerhouse Museum and ANZ Stadium projects in doubt.
NSW
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Treasurer Dominic Perrottet has warned government MPs the NSW Budget has taken a $10 billion hit to combat the coronavirus pandemic — and refused to say whether the state’s Powerhouse Museum relocation to Parramatta would continue as planned.
Mr Perrottet told a joint party room meeting — the first of its kind conducted on video call — that the NSW government had spent “double” any other state on the pandemic, which would impact the budget.
He said the government was committed to bringing forward “shovel-ready” infrastructure projects to keep the state’s economy moving, but skirted around recommitting to the Powerhouse relocation on its current terms.
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It comes as multiple ministers are privately arguing that both the Powerhouse and the ANZ Stadium redevelopment at Olympic Park should be scrapped for smaller projects, with division in senior ranks over the plans.
The stadium was not raised at yesterday’s meeting, however multiple government ministers are pushing for the $810 million project to be abandoned.
Some believe the money should be ploughed into community football grounds, while others believe there are non-sport related infrastructure projects with a better case for funding in the current climate.
The government remains strongly committed to infrastructure investment and sees it as the major pathway for the state’s return to economic prosperity, however precisely which projects it will pursue is the subject of internal debate.
There is a preference for short, shovel-ready projects with high employment prospects to stimulate the economy.
The $10 billion budget hit is the product of lost revenue from tax concessions and other stimulus measures.
Upper House Liberal Matthew Mason-Cox asked the Treasurer about Powerhouse at yesterday’s meeting.
The Daily Telegraph confirmed the exchange with three participants in the meeting, who all agreed Mr Perrottet did not clearly answer the question.
When asked about the exchange, a spokesman for Mr Perrottet said the Treasurer did not comment on private party room conversations.