Sydney’s second airport: government set to go it alone

The Turnbull government will build Western Sydney Airport, with the details to be outlined in next week’s federal budget.

Aerial photos of the site of the Western Sydney Airport in Badgerys Creek. Picture: Jonathan Ng

Sydney Airport’s decision to decline an offer to run a second airport at Badgerys Creek has cleared the way for the government to build the $5 billion dollar project.

Prime Minister Malcolm Turnbull has announced that government will go it alone and build Badgerys Creek airport.

“The government has worked carefully to meet our obligations and we have been planning for either contingency – acceptance or rejection by Sydney Airport Group,” Mr Turnbull said in a joint statement with Urban Infrastructure Minister Paul Fletcher on Tuesday.

Details of construction timetable and funding model will be released in the May budget.

“Details of the Turnbull Government’s plan to build Western Sydney Airport will be announced by the Treasurer in the Budget next week,“ the statement said.

Ahead of a May 8 deadline, Sydney Airport informed the government today it will not take up an opportunity to build a second airport. The Australian then reported earlier this morning that the government would announce today that the government would take on the task of building it.

The Weekend Australian revealed in April that several funding options were being considered should the government take on construction, including models based on the corporatised Snowy Mountains Scheme or an off-budget NBN Co model.

Sydney Airport said the project was not in the best interests of shareholders after receiving the terms for developing and operating a planned airport in western Sydney in December.

Mr Fletcher said in April he and federal offic­ials had met construction firms as part of the government’s contingency planning.

“The development of a new airport is an exciting opportunity for western Sydney,” managing director Kerrie Mather said.

“(However), Sydney Airport’s decision not to accept the WSA notice of intention on the terms provided is in the best interests of our investors who represent millions of Australians through their superannuation funds.

“Despite the opportunities that WSA will present, the risks associated with the development and operation of WSA are considerable and endure for many decades without commensurate returns for our investors.”

Premier Gladys Berejiklian said the NSW govenrment will support the federal government to build the second Sydney airport and make sure it is done as quickly as possible.

“We are a stakeholder, it’s in our state, we have a huge interest in making sure it happens and we will support in whichever way we can the federal government to make it happen as quickly as possible,” she said.

“I think the community wants to see the project come to life as opposed to necessarily worrying about who builds or who operates it.”

Labor infrastructure spokesman Anthony Albanese backed the move, but said some construction funding should be brought forward.

“This is an exciting opportunity for jobs and economic development in Western Sydney,” he said.

“But it needs to be got right and that’s why the funding should be brought forward in the budget for the creation of the vehicle which is going to construct the western Sydney airport and the funding needs to be there also for the Western Sydney rail access through that airport on a North South corridor.”

Former Prime Minister Tony Abbott urged the government to build it quickly.

“[The] end of talks with Sydney Airport should mean there’s now no obstacle to a speedy build. Good that we’re cracking on with this vital project for jobs and growth in Western Sydney!” Mr Abbott tweeted.