Federal infrastructure review: Fate of Tasmanian projects revealed as report recommends funding cuts

A review into the nation’s infrastructure investment program has recommended that federal funding for 82 projects across the country be withdrawn. Find out which Tasmanian projects were spared.

CANBERRA, AUSTRALIA, NewsWire Photos. NOVEMBER 6, 2023: Minister for Infrastructure, Transport and Regional Development Catherine King. Picture: NCA NewsWire / Martin Ollman

Tasmanian infrastructure projects have largely been spared from federal funding cuts in the wake of an independent review into the nation’s pipeline of works, which recommended that Commonwealth support for more than 80 projects across the country be withdrawn.

State and federal Liberal MPs had raised concerns that crucial funds for major Tasmanian initiatives, including planned upgrades to the Tasman Bridge and the duplication of the Midway Point and Sorell causeways, could be taken off the table following the review.

However, after the report was belatedly published on Thursday, those fears were mostly allayed.

The Albanese government will honour its funding commitments for all but one Tasmanian infrastructure initiative, with the $16m for the Old Surrey Rd/Massey Greene Drive upgrade near Burnie set to be axed because of cost blowouts.

Aerial image of the Midway Point and Sorell causewaysr. Picture: RICHARD JUPE

The Rockliff government has also been told to provide Canberra with a business plan for the Northern Suburbs Transit Corridor before it receives the remaining $22.5 million in federal funds committed for construction.

The review was commissioned by federal Infrastructure Minister Catherine King due to concerns that a large number of projects in the Infrastructure Investment Program lacked sufficient funding or strong enough business cases to justify government funding.

It found that the current $120 billion pipeline carried almost $33 billion in “identified cost pressures”.

The review made 15 recommendations, including that 82 projects be scrapped to make “headroom” in the investment program.

One of the most contentious aspects of the review is its recommendation that the federal government implement a new funding split for all new infrastructure projects, moving away from an 80/20 split with the states and territories to a 50/50 arrangement.

Ms King said the review had found that the Infrastructure Investment Program “inherited” from the former Coalition government was “undeliverable” and that a government response to the recommendations would be announced “in coming days”.

“From now on the Australian government’s investment in infrastructure will focus on productivity, sustainability, and liveability,” she said.

“This is the long-term reform for the benefit of the nation that is the hallmark of a Labor government.”

Infrastructure and Transport Minister Michael Ferguson. Picture: Nikki Davis-Jones

State Infrastructure and Transport Minister Michael Ferguson said the Tasmanian government had “never supported any cuts to our well-planned and co-ordinated infrastructure pipeline”.

He said a potential 50/50 funding split was “unacceptable” and would lead to a 60 per cent reduction in Tasmania’s civil construction workforce.

Civil Contractors Federation Tasmania CEO Andrew Winch has also criticised the proposal, describing it as “deeply concerning” and saying it would result in “less investment in roads in Tasmania”.

Tasmanian Liberal senator Jonathon Duniam said changing to a 50/50 model would see “more potholes and more cracks on our roads and less money for future, potentially transformative, infrastructure projects”.