NSW budget: Billions in budget for ‘responsible infrastructure’ but high-speed rail plans in gutter

NSW’s high-speed rail aspirations have taken a hit in a saving-centric budget, with funding also diverted to ‘responsible infrastructure’.

Metro West construction in Five Dock. The project has been preserved in the forward estimates. Picture: Max Mason-Hubers

The state’s high-speed rail aspirations have taken a hit in a saving-centric NSW budget, with funding also diverted to “responsible infrastructure”.

In NSW Treasurer Daniel Mookhey’s first state budget on Tuesday, the balance books reveal a $7.8bn deficit but with a modest $3.6bn improvement to the state’s bottom line over the next four years.

The big tenet of the budget was housing, with $2.2bn committed in new funding in a massive infrastructure and housing push, including 5000 new homes and the neighbourhood amenities needed to prop them up.

Mr Mookhey said the budget diverted funding from “fantasy projects … that may never be delivered” to rebuilding essential services, but also “responsible infrastructure” with housing supply in mind.

However, it was also revealed $150m had been redirected away from the Faster Rail Program, an exploratory body into faster train routes from Sydney to Canberra, Newcastle, the state’s central west and Bomaderry.

An artist’s impression of what NSW high-speed rail could look like.

The move – which forms part of what the government said was $13bn in savings – was met with disappointment.

Committee for Sydney CEO Eamon Waterford said it illustrated a lack of political will to make the region a fully connected “six-city” state.

“While not entirely unexpected, this decision puts at risk all the potential of a genuine six-city mega-region to drive Sydney’s competitiveness on a global scale,” he said. “It’s now critical that the federal government and High Speed Rail Authority step in to fund this critical intergenerational infrastructure.”

Although “fantasy projects” committed to by the previous state government have been scaled back, there is funding for Sydney’s key under-construction rail projects – Metro and Parramatta’s light-rail.

Stage two of the Parramatta light-rail project received a $200m injection from the budget, although the local mayor called for further investment.

There was funding for the Sydney Metro Southwest project.

“This is a great first step but more will be needed if we’re going to see construction of this vital transport link start in this term of government,” Parramatta Lord Mayor Sameer Pandey said.

However, opposition transport spokeswoman Natalie Ward said the funding – or lack of it – showed the “era of transport building was over”.

“Labor’s investment only covers 5 per cent of the total cost of stage two of the light rail,” Ms Ward said.

In the forward estimates, funding for the embattled Metro West was preserved, although the Treasurer warned people against drawing conclusions as to the project’s eventual continuation – saying it was to ensure “due diligence”.

However, Western Sydney Dialogue chief executive Adam Leto welcomed the preservation of the project.