Axe looms on $120b worth of projects

The 90-day independent review, announced by Infrastructure Minister Catherine King, will probe the 10-year, $120 billion pipeline – which she said had been blown out from 150 projects to nearly 800 “press release” projects under a decade of Coalition governments.

As Australia’s core inflation rate sits higher than any G7 country, Ms King said the Coalition governments had had an “appetite for announcing projects that wasn’t matched with a commitment to deliver” and the Albanese government was committed to substantially changing the make-up of the infrastructure pipeline.

While the government has not committed to any savings target, Finance Minister Katy Gallagher on Sunday said the government had found billions more in savings throughout the budget, ahead of next Tuesday’s Budget.

Ms King says the review was prompted by discovering projects committed to by the previous government were left without adequate funding or resources; projects that offered little benefit to the public were approved; and the “clogged” pipeline caused delays and overruns in more important, nation-building projects.

“A properly functioning infrastructure investment pipeline means projects can be delivered with more confidence about time frames and budgets,” Ms King said.

“Easing the pressure on the construction sector will help drive inflation lower, and deliver more predictable investment and delivery outcomes from governments.”

She said that projects already under construction would proceed, and that the government was committed to maintaining significant infrastructure investment for the medium term.

Labor’s election commitments will not be among the projects up for scrutiny.

“Communities will benefit from national significant infrastructure with shorter and safer travel, more liveable cities, suburbs and regions, while the economy benefits from the certainty brought by a smoother delivery of investment matched to project timelines,” she said.

“It is time to clean up the mess left by the Liberals and Nationals clogging the pipeline with ‘press release projects’ – announced but unable to be delivered.

“This review will put confidence back into the investment pipeline, benefiting the states and territories and the communities we all serve.”

The review will be undertaken by former public servants and land transport infrastructure experts Reece Waldock AM, Clare Gardiner-Barnes and Mike Mrdak.