Over the next 15 years, the ACT Government intends to build Light Rail Stage 2B (Commonwealth Park to Woden), a new northside hospital, a new Bruce stadium, a new Canberra Theatre expansion, a new convention centre, and other infrastructure projects such as the Molonglo River Bridge, arterial road upgrades, and active travel routes, altogether costing more than $8.5 billion.
But the Canberra Liberals say the government has released no business cases, completion dates, or detailed funding.
Opposition leader Elizabeth Lee will call today on the government to publicly release the business case for all projects listed in the ACT’s infrastructure plan, and to report by June whether the Federal Government will pay for half the costs of these projects.
“It is time for [Chief Minister] Andrew Barr to be upfront with Canberrans,” Ms Lee said.
The Chief Minister said the government would release business cases for major projects “at appropriate times, to ensure transparency and provide accurate information to the community regarding the economic, productivity and community considerations informing Government decision-making, while protecting the commercial interests of the Territory and ensuring that value for money outcomes are not compromised”.
Negating Ms Lee’s motion, Mr Barr challenged her to tell the public what projects, alongside Light Rail Stage 2B to Woden, a Canberra Liberals Government would cut from the forward Infrastructure Investment Program.
“Some things never change with the Liberal party,” Mr Barr said. “They are the party that stands for cuts to Government services, cuts to the public service, and cuts to Government infrastructure programs. This is the mantra of the current Canberra Liberals leader, and it’s about time that the conservative party in the Assembly is upfront with Canberrans on what exactly they plan to cut if they are given the opportunity.”
The ACT Infrastructure Investment Program is forecast to be $8.5 billion over the five years to 2027-28 to cater for Canberra’s growing population, expected to reach half a million by 2026-27, “making investment in infrastructure necessary to maintain our world class living standards and wellbeing outcomes”, Mr Barr said.
But Ms Lee estimates that to fund these projects, the ACT Government will borrow at least $18.5 billion, and that the interest would be more than double what it spends on housing.
“Debt in the ACT is anticipated to exceed $18 billion in the forward estimates, with interest repayments alone to cost Canberrans almost $2 million a day; it is incumbent on Andrew Barr to be upfront with Canberrans about how he intends to pay for all his promises,” Ms Lee said.
“During recent budget review hearings, Andrew Barr revealed that increases to own-source revenue which means taxing Canberrans more, will be considered to fund his spiralling debt costs and to avoid further credit ratings downgrades. Canberrans have every right to know if they will be slugged with more taxes and what they will get for it.”
Mr Barr said that the Infrastructure Investment Program would be financed over the next decade through operating cash surpluses, asset sales, significant Commonwealth co-contributions, market borrowings, and leasing arrangements.
Although Mr Barr wants the ACT and Commonwealth Governments to work together through the National Capital Investment Framework to fund essential infrastructure, Ms Lee claims: “There appears to be no firm commitment by the Albanese Labor government to stump up 50 per cent of the cost of any of these projects.”
The Canberra Liberals want the government to publish a full list of delayed projects for each region in the next edition of the Our CBR Newsletter. Some of those infrastructure projects were announced more than 15 years ago, Ms Lee said: a stadium and convention centre were mooted in 2008 and 2009.
More than half of new Capital Works Projects major directorates began in the 2020-21, 2021-22, and 2022-23 budgets have been delayed, Ms Lee said. Capital Works Program expenditure reports for the same financial years show that the ACT Government failed to spend more than $500 million of allocated funds on Capital Works Projects across major directorates, Ms Lee remarked, and during construction of Light Rail Stage 1, the Chief Minister cut projects in health and housing to ensure funds were reallocated to build the tram from Gungahlin to the City.
“The Labor-Greens government is very good at making announcements with much fanfare and then re-announcing and rescoping projects, but where they fail time and time again is at delivery, highlighted by the significantly delayed Canberra Hospital Expansion and stage 2A of the tram,” Ms Lee said.
The Canberra Hospital Expansion was first announced in 2016 with a completion date of 2022, while stage 2A will not run until 2028.
The Canberra Hospital Expansion would be completed in the middle of this year, Mr Barr stated; and Woden CIT next year. Raising London Circuit, connecting the CBD to New Acton, is expected to be finished this year.
Since 2014, Mr Barr stated, the government has delivered infrastructure worth $7.5 billion, including Light Rail Stage 1 from Gungahlin to the City, University of Canberra Public Hospital, five new schools, new Nurse-led Walk-in Centres, public housing, and major community sporting and recreation facilities.
“The ACT Government has a very clear plan to build Canberra’s future by delivering the infrastructure our growing city needs,” the Chief Minister said.
