Federal government to cut-back on state infrastructure contributions
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The news: State governments have hit back at federal plans to cut back on Commonwealth contributions to state projects.
The numbers: In an overhaul of federal infrastructure policy, the Commonwealth government will contribute to approved state infrastructure projects deemed "nationally significant" on a 50-50 basis. It previously contributed on an 80-20 basis or funded projects completely.
The context: Federal Infrastructure Minister Catherine King made the announcement after an independent audit found $33 billion of cost overruns in the infrastructure budget.
Nationally significant projects must meet two of four requirements: a federal contribution of at least $250 million; an alignment with defined federal government priorities; connection to the National Land Transport Network or; and supporting of broader priorities such as housing, defence, critical minerals development or closing the gap.
What they said: "Australia’s infrastructure investment pipeline has become a house built on sand,” King said on Tuesday. “We’re not cutting funding, we’re cutting the lies and we’re cutting the waste."
"I'm not happy," said Queensland Premier Annastacia Palaszczuk. "For a decade Queensland was ripped off by the former coalition government, which meant our government has done the heavy lifting."
"I'm not going to gild the lily here, that's a major concern for the NSW government," NSW Premier Chris Minns told ABC radio.
The sources: Infrastructure Policy Statement, AAP
