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Government sources in Victoria, Queensland and South Australia confirmed talks were being held with the Commonwealth about either staggering, delaying or cutting jointly funded projects.
In Victoria, the airport rail link will be delayed by years even though early works have begun and the sources said the $16 billion North East Link was also being discussed as a project from which money could be saved, fuelling opposition claims that the Andrews government’s largesse has created an unsustainable budget.
The North East Link is one of Australia’s most expensive roads.
Other projects up for review in Victoria will include the Frankston to Baxter rail, the Shepparton Bypass, the Canterbury Road upgrade, and Geelong fast rail.
In Queensland, changes could be made to the $1.8 billion South-East Queensland City Deal, while the Bruce Highway Brisbane to Sunshine Coast rail extension could also be scrutinised.
A leaked document presented at national cabinet stated: “Recognising the fiscal constraints that all levels of government are currently facing, concurrent action at all levels of government is required to drive much-needed reform in areas including infrastructure, migration, housing and planning, to meet growing demands on our communities”.
After the meeting in Brisbane, Prime Minister Anthony Albanese said the Nationals had their “imprint all over the infrastructure program”.
Prime Minister Anthony Albanese speaking after national cabinet on Friday.Credit: Dan Peled
“We know the debacle that is Inland Rail, for example, a program that has been going for years, where the costs have blown out to in excess of $30 billion – blown out by more than four times and yet still does not have a path or a plan to get to a port,” he said.
The review will be undertaken by former department secretary Mike Mrdak, Infrastructure Australia acting board member Clare Gardiner-Barnes, and senior West Australian transport bureaucrat Reece Waldock.
A 2020 analysis by the Grattan Institute found state and federal governments spent $34 billion, or 21 per cent, more on transport projects completed since 2001 than they first told taxpayers the works would cost.
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