NSW’s major projects such as Beaches Link and Parramatta Light Rail could be suspended after a key report found them to be increasingly complex and expensive.
Key points:
- The report states that the government’s cash flow has been stretched by COVID-19
- Infrastructure NSW made a total of 113 recommendations
- Treasurer in the shadow of the job, Daniel Mookhey, said it looked like the government was backtracking on its promises.
The NSW government’s independent infrastructure agency said “megaprojects” such as the Beaches Link, Parramatta Light Rail, the M6 motorway, a Blue Mountains tunnel linking Katoomba and Lithgow, major dams and future stages of the Sydney Underground should be abandoned in favor of smaller projects than providing “high returns”.
In its five-year strategy, released today, NSW Infrastructure argued that it would be increasingly difficult for the NSW government to deliver complex, multimillion-dollar projects due to labor shortages and the continuing impact of the pandemic. COVID-19.
“The capacity of the construction industry, supply chains and skills have been stretched by COVID-19 and other global events,” the report states.
“It would be especially difficult to offer additional megaprojects in a cost-effective way in the coming years.”
However, Infrastructure NSW recommended that a proposal to lift the Warragamba Dam wall should proceed as planned to provide flood mitigation to the low-income suburbs north-west of Sydney.
Infrastructure Minister Rob Stokes said the projects would go ahead but could be postponed. (AAP: Bianca De Marchi)
Infrastructure Minister Rob Stokes said the NSW government remained committed to all of its projects, but hinted that some could be delayed or postponed.
“The NSW government remains committed to all projects,” he said.
“We now need to heed NSW Infrastructure’s advice regarding the sequencing of our record-breaking infrastructure pipeline in light of the extraordinary global headwinds.”
Deputy Prime Minister and Regional Minister Paul Toole echoed the sentiment.
“We know how big projects like dams and roads can be transformative for regional communities, and the NSW government remains committed to seeing these projects completed,” Toole said.
The Warragamba Dam was spilled during the North Coast flood event earlier this year. (ABC News)
But Treasurer in the shadow of the job, Daniel Mookhey, said it looked like the government was preparing to drop its key promises.
“These are projects that have already passed the government’s own evaluation processes for both necessity and affordability,” he said.
“The fact that the government is now returning to its own promises raises serious questions about how this government selects projects and how the government intends to pay for them.”
“These communities deserve clear government responses on why these projects are being phased out.”
Deputy Labor Treasurer Daniel Mookhey said the measure raised questions about how the government intends to pay for the projects. (AAP: Bianca De Marchi)
Infrastructure NSW made a total of 113 recommendations, including improving the state’s long-term water security by introducing recycled drinking water.
The report also argued that the government should continue with its “asset recycling” program, in which state-owned assets are privatized in order to finance new projects.
And he said private sector investment would be key to the future provision of state infrastructure and services.
“The government should continue with successful policies such as asset recycling, user charges and value capture to maintain its infrastructure investment portfolio,” the report states.
“It should also look for more private sector co-investment and more long-term programmatic funding support from the Commonwealth.”
Posted 47 minutes ago, 47 minutes ago, Tuesday, May 31, 2022 at 12:56 PM, updated 34 minutes ago, 34 minutes ago, Tuesday, May 31, 2022 at 1:09 AM