Tasmanian government says major infrastructure projects at risk under federal Labor’s 50:50 funding split
The state government says major projects like the new Bridgewater Bridge may not be possible in the future if federal Labor holds firm to its new infrastructure funding model.
Tasmania
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Infrastructure Minister Kerry Vincent has claimed major developments like the new $786m Bridgewater Bridge would not be possible in the future under federal Labor’s move to impose a 50:50 funding split with states and territories for projects of national significance.
The Albanese government announced an end to the standard 80:20 split in 2023, following a review of the nation’s $120bn infrastructure pipeline.
The review found that some Commonwealth-backed projects in the pipeline had no “strategic rationale”.
Federal Infrastructure Minister Catherine King has previously said that the review highlighted “how badly” the former Coalition government handled infrastructure investment during “their wasted decade [in power].”
The Tasmanian Liberal government has pushed back against the new funding model, while the federal Coalition has committed to restoring the traditional 80:20 split for nationally significant infrastructure projects.
Mr Vincent said the new Bridgewater Bridge would have cost the state government an additional $235m to build under the 50:50 arrangement.
“That would be a disaster for Tasmania, and more than likely, that project wouldn’t be at the stage it is now. Instead, with the 80:20 split, it is a project that we’re all proud of, both federally and [at the state level],” he said on Wednesday.
“If we lose the 80:20 split, we have to reanalyse when and how we can do these projects and the scope of those projects, the design of those projects.”
Speaking in Bridgewater on Tuesday, Prime Minister Anthony Albanese was asked if he would consider restoring the 80:20 model.
He said Labor expected state and territory governments to “step up and do their bit” when it came to infrastructure funding.
“Here in Tasmania, the record investment that we will continue to put in for Tasmania, including not just infrastructure investment in roads and rail, but investments such as the additional $120m we’re contributing at Launceston for hospitals, will make an enormous difference,” he said.
Mr Vincent said he was “very disappointed” by the Prime Minister’s remarks.
“To have Mr Albanese determine that we have a bigger buy-in if we go to a 50:50 split is just so, so disappointing and wrong,” he said.
When asked to clarify which Tasmanian infrastructure projects could be at risk under the new funding model, Mr Vincent avoided providing specific examples.
“It’s not so much [about] an individual product, it’s more the complete array of projects that we have throughout the state over the next 10 years that are put in an altered position,” he said.
Lyons Liberal candidate Susie Bower said Labor was “totally short-changing all Tasmanians” by imposing the 80:20 split.
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Originally published as Tasmanian government says major infrastructure projects at risk under federal Labor’s 50:50 funding split
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