States want ‘fair share’ of infrastructure funds
State and territory governments are urging Anthony Albanese to deliver promised infrastructure projects in full despite surging inflation.
State and territory governments are urging Anthony Albanese to deliver promised infrastructure projects in full despite surging inflation, calling on Labor not to cut funding with smaller jurisdictions concerned they are missing out on their fair share of money.
The calls come after Finance Minister Katy Gallagher signalled state and commonwealth infrastructure projects may have to be staggered to ensure they do not fuel inflation.
Senator Gallagher on Wednesday said Labor was grappling with an “overprogrammed” pipeline that was significantly more expensive than first promised, amid soaring costs and fierce competition for scarce resources.
The Australian on Tuesday revealed the Reserve Bank’s struggle to tame inflation was being exacerbated by $260bn worth of state and territory infrastructure spending, with big business and experts warning a failure to slow the mammoth pipeline of road, rail and energy projects would cause rates to go even higher.
“I think all levels of government recognise inflation is a key challenge in our economy, which is why the states and territories are working with us around how we phase those big infrastructure spends,” Senator Gallagher said.
“I’m saying we are trying to ensure the infrastructure that’s been promised, projects that have been outlined, are phased appropriately, can be delivered, and we understand what the true cost is.
“We’ve inherited a program that’s overprogrammed, that hasn’t been able to be delivered, and (one) where there is significant cost difference between what was expected and what is actually turning out to be the case.”
With projects running 9 per cent behind schedule nationally, NSW is undertaking a comprehensive strategic infrastructure review of its $88.4bn pipeline, while the Albanese government is probing hundreds of infrastructure projects as part of a sweeping 90-day independent review of its 10-year $120bn pipeline.
Tasmanian Infrastructure Minister Michael Ferguson hit back at suggestions that infrastructure projects would need to be slowed down and said the state would not accept any cuts to federal funding.
“Tasmania deserves its fair share and we will not accept any unilateral cuts to federal funding for much-needed infrastructure projects,” he said.
“All of these projects are vitally important for Tasmanians and must be honoured in full.”
ACT Chief Minister Andrew Barr said the Territory had been “persistently overlooked” for infrastructure funding despite the jurisdiction being the fastest-growing area in the country.
He said essential projects must be completed, and urged the government to lift funding in proportion to the ACT population.
“Our population has increased 25 per cent in the past 10 years,” Mr Barr said. “We need to build the infrastructure to support that rapid population growth.”