Cabinet archives: High costs and lack of demand forced sidelining of rail and air projects

A second Sydney airport and a fast train between the NSW capital and Canberra were respectively delayed and scrapped altogether by the Howard cabinet in 2000.

The Howard government delayed plans for a second Sydney airport in 2000 – which is finally being built 20 years later. Picture: AAP

A second Sydney airport and a fast train between the NSW capital and Canberra were respectively delayed and scrapped altogether by the Howard cabinet at the turn of the century.

Concerns about high costs and environmental damage quelled the “Very Fast Train” linking east coast cities and a possible second Sydney airport on the Kurnell Peninsula south of the city.

But the government did agree to keep the Badgerys Creek site in western Sydney, where the second airport is now being built, and review the airport needs in 2005.

A second airport was among the most contentious of the transport decisions made at the turn of the millennium and would not be resolved for nearly 20 years. Cabinet papers reveal a proposal to put it at Kurnell, near Cronulla, was abandoned due to a belief that there was not enough demand.

“The cabinet noted that projected demand did not justify expenditure on a second Sydney airport at present, but that the growth of population in western Sydney may justify the future development of an airport,” the cabinet papers state.

“The cabinet agreed a review be conducted of Sydney airport needs … in about five years’ time.

“The cabinet further noted a wide range of options for possible airport development on the Kurnell Peninsula, but decided not to proceed.”

Cabinet did agree to support coping strategies for the primary airport at Kingsford Smith, with the aim that it could deal with increased demand until 2010.

One of the proposals to deal with demands was the development of a high-speed rail connecting east coast cities — something successive governments are still yet to achieve — but the Howard cabinet did not think the bid at the time met its policy of adding no net costs to the budget.

“The NSW and ACT government are not able or prepared to make significant contributions to the project, and the demand on the commonwealth budget to meet all required assistance is unacceptably high,” the papers state.

“The commonwealth is not satisfied the Speedrail Proved Up bid met the No Net Cost test.

“Given the strong technical outcome of the tender process and the widespread support for the proposal, (cabinet agreed) a scoping study be undertaken to investigate the feasibility of a Very High Speed Train network.”