Federal Labor's backdown on roads and bridges program

The Tasmanian Government welcomes the Federal Labor Government’s recent back-down on its unacceptable approach to funding for roads and bridges in Tasmania, and Australia more broadly.

After delivering its Infrastructure Investment Program Review in November 2023, which was delayed by months since the 90-day review was first announced in May 2023, the Australian Government has been attempting to bully states and territories into signing a new Land Transport Infrastructure National Partnership Agreement that would result in less investment in roads, rail and bridges across Australia.

From day one after the review was announced, I have fought to protect Tasmania’s interests as the traditional 80/20 contribution between the Australian and Tasmanian Governments has been key to delivering much-needed upgrades to roads and bridges across regional Tasmania.

This includes infrastructure upgrade programs that have and continue to be delivered on the Bass Highway, the Midland Highway, the Tasman Highway and many other projects which have only been possible because the Australian Government has contributed 80 per cent of the cost, consistent with its greater financial capacity.

The Australian Government saw fit to engage in stone-walling tactics on the new Agreement, insisting that it hard-wire in a clause that meant they would only contribute 50 per cent of the cost of future upgrades to the National Highway and other major road projects. What this meant is that there would have been less investment in safer and more reliable roads in regional and rural Tasmania.

In a shameful negotiating tactic that demonstrated a lack of good faith, the Australian Government was prepared to let the existing Agreement expire on 30 June, nearly two months ago, with the threat that payments for existing projects would be withheld unless states and territories agreed to their unreasonable demands. This was despite the fact that the existing Agreement could have been extended while negotiations continued between our governments.

Thanks to the strong efforts of state and territory Treasurers and Infrastructure Ministers, we have been able to stare down the Australian Government, and the clause that would have hard-wired a 50/50 arrangement in the new Agreement has now been withdrawn from the latest offer from the Federal Minister for Infrastructure, Transport, Reginal Development and Local Government.

I am proud to have secured this outcome for Tasmania and I welcome that Minister King has seen sense and returned to the negotiating table with a reasonable offer, which the Tasmanian Government will now consider favourably.