The state and federal Labor governments have rejected claims they have cut $123 million for Western Highway upgrades between Ararat and the South Australian border, saying funding has been deferred but the project will not be delayed. 

More than 6,000 vehicles, including 1,500 trucks, travel on the route west of Ballarat each day, and the road is one of the state's riskiest.

Federal Transport Minister Catherine King has gone on the offensive, accusing the Nationals of deliberately misleading Wimmera residents over the highway.

Cut or deferred?

While visiting the Wimmera last week, Shadow Transport Minister Bridget McKenzie said Senate estimates documents and hearings showed the federal government had cut $100 million from the plan over the next three financial years.

"There was also a further $23.1 million cut from the ROSI [Roads of Strategic Importance] program for upgrades to the Western Highway from Stawell to the South Australian border," a spokesperson for Ms McKenzie said in a statement.

In response, a spokeswoman for Ms King said funding had not been reduced, only deferred.

"The government anticipates this project will be completed in 2026–27, the same timeframe as anticipated by the previous government," the spokeswoman said.

"Given the conditions in the sector with rising prices due to inflation, and supply chain and labour constraints, the Albanese government in the October budget smoothed the $123 billion infrastructure pipeline to move funding closer to when projects were expected to be delivered.

"$50 million of funding for the Western Highway to complete the duplication between Ballarat and Stawell was deferred in consultation with Victoria, in order to better align with project construction timelines.

"The department provided this information to the Opposition in evidence tabled before the Senate regional and rural affairs committee, of which Senator McKenzie is a member.

"Senator McKenzie has no credibility when it comes to the allocation of government funding and she should stop misleading the community."

In 2019, the Coalition committed $360 million to the $450 million project to duplicate the highway between Ararat and Stawell.

The Opposition also said plans to upgrade the highway's intersections at Seaby Street in Stawell — and with the Henty Highway, Plumpton Road, and Golf Course Road in Horsham — had each been delayed by two years. 

These two intersection projects received a combined $6.94 million under the ROSI initiative in 2021, when the federal Coalition was in power. 

In response, a Victorian government spokesperson said works on Seaby Street were set to begin late this year, and designs were being finalised for the Henty intersection.

"This is a complex intersection project and an extensive consultation program has been undertaken. Work is ongoing with utility providers and construction is set to commence in 2024," the spokesperson said.

New plan still under development

Major Road Projects Victoria (MRPV), on behalf of the Victorian government, is delivering the duplication.

The project has been completed up to Buangor: MRPV is preparing a new Cultural Heritage Management Plan (CHMP) to allow the re-commencement of works after the government agreed to alter the route to avoid trees of significance to traditional owners.

"The preparation of the CHMP is a culturally sensitive matter and the assessment process must run its full course," the spokesperson said. 

"Consultation is continuing with Eastern Maar Aboriginal Corporation (EMAC), which is undertaking broad consultation across its community.

"Environmental and engineering investigations required to inform the development of the business case for the section between Ararat and Stawell are now underway.

"Once the business case is complete, the construction of the Ararat to Stawell upgrade will be considered for future funding."

The business case must be submitted by December 2023.