Warning on projects of marginal value

The nation’s leading infrastructure think tank has warned against wasting funds on “vanity projects” in the lead up to the federal election.

Liberal Member for Corangamite Sarah Henderson, Prime Minister Scott Morrison and Treasurer Josh Frydenberg announce a high-speed rail link between Melbourne and Geelong. Picture: AAP

The nation’s leading infrastructure think tank has warned against wasting funds on “vanity projects” in the lead up to the federal election, as the Coalition and Labor unveil a suite of small and medium-sized public works in marginal electorates.

Infrastructure Partnerships Australia chief executive Adrian Dwyer called on the major parties to prioritise projects aimed at enhancing national productivity with a focus on “asset recycling” — where state assets are sold or leased to private buyers with the proceeds put towards new projects or upgrading infrastructure.

“The major parties mustn’t lose focus on the projects that give Australians the best bang for buck,” Mr Dwyer said.

“It would be disappointing to see vanity projects prevail at the expense of sound investments.”

Scott Morrison last week committed $2 billion towards a fast-rail link between Geelong and Melbourne, saying the project would cut commuting time between the state’s biggest cities by up to 32 minutes.

The project is one of several proposed fast-rail links flagged by the Coalition as part of its policy to get more people to live in regional areas. The policy was not listed on Infrastructure Australia’s 2019 priorities list or ­assessed by the independent body, although the body did flag a need to expand rail capacity between Melbourne and Geelong.

“As our population grows, fast-rail networks are crucial to easing congestion pressures in our cities and shaping Australia’s future,” the Prime Minister said.

The funding, which would have to be matched by the Victorian government for the project to get off the ground, was pitched at voters in the seat of Corangamite, held by Liberal MP Sarah Henderson by a wafer-thin ­margin of 0.3 per cent.

Victorian Transport Infrastructure Minister Jacinta Allan said the Geelong fast-rail plan was a “thought bubble” on the eve of a federal election.

She said the federal government should instead commit funds to “precursor” projects nominated by the Victorian government that were necessary ­before the fast-rail link could be delivered.

Mr Morrison has been travelling the country with Cities Minister Alan Tudge announcing “congestion busting” infrastructure funding to be locked-in in the upcoming federal budget.

With as few as eight weeks until the election, Bill Shorten said the government’s motives were clear.

“How do you know when there’s going to be a federal election, the Liberal Party discover infrastructure in Victoria. What a coincidence,” the Opposition Leader said.

Other recent announcements by the government ­include $70 million to ease traffic in the Melbourne suburb of Pakenham and a $194m roads package in Adelaide.

Mr Dwyer said, as economic growth began to slow, a program like the asset recycling initiative was a perfect way to enhance productivity and drive real economic benefits: “In last year’s federal budget the government’s warm infrastructure narrative wasn’t met by cold hard cash. The federal government effectively reduced funding for infrastructure by $2bn over the forward estimates.”