Deep concern about new Federal Government road funding policy

Civil Contractors Federation Tasmania has today expressed deep concern about the new road funding arrangements announced by the Federal Government, which are likely to see a significant reduction in road funding in Tasmania.

CCF Tasmania CEO Andrew Winch said that the new Federal Government policy announced yesterday sees a departure from the current policy of 80-20 Federal-State funding split for road projects, to 50-50.

“This is a deeply concerning announcement”, Mr Winch said.

“It’s no secret that the Federal Government has much deeper pockets than the State Government.

“Basic maths tells you that the need for the State to find an extra 30 per cent for new jointly funded road projects is inevitably going to mean less investment in roads in Tasmania.”

Mr Winch also called for clarity on whether this new policy applies to projects in Tasmania below $250 million in total, and if so, would it be applied retrospectively, as part of the Federal Government’s so-called “90 day” infrastructure review.

“There are a number of vital road projects yet to be commenced which are currently funded on an 80-20 basis, including duplication of the Midway Point and Sorell causeways, the Deloraine to Devonport upgrade of the Bass Highway, and the duplication of the Kingston Bypass”, Mr Winch said.

“Is this new Federal Government policy a way of cutting these projects by the back-door?”

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