The Federal Government has announced it will provide $50 million to plan for Stage 2B of the Canberra Light Rail, to design the extension of the light rail line from Commonwealth Park to Woden.

Labor politicians claim that light rail will create jobs, build opportunity and unlock economic growth across Canberra’s south, as it has on the north.

“Canberrans are already experiencing the benefits of being able to commute to work from the northern suburb of Gunghalin to the City Centre, with services operating every 5 minutes in peak hours, and the short travel time also encourages people to enjoy the amenities in the City,” finance minister Senator Katy Gallagher and minister for infrastructure, transport, regional development and local government Catherine King MP said.

“This investment will cement Canberra’s reputation as a sustainable, liveable city by improving connections to where people live and work as the city continues to grow.”

ACT transport minister Chris Steel said: “We welcome this significant investment from the Commonwealth and their support for the design and approvals for the southside extension of Canberra’s mass-transit light rail line.”

The Federal Government last year committed $343.9 million to Stage 2A.

“Canberra’s population is expected to increase from around 460,000 today, to more than 780,000 people by 2060,” Mr Steel said. “Both the Albanese Labor Government and the Barr Government are investing now to deliver an integrated public transport network fit for our growing city.”

However, the Canberra Liberals are not impressed, given their calculations that light rail stage two will cost around $5 billion ($1.46 billion for stage 2A and more than $4 billion for stage 2B).

“At $50 million, the Feds are pledging just over 1 per cent of the project,” shadow transport minister Mark Parton said. “We’ve just gotta find the other 98.8 per cent.

“And at the end of it all, based on the way that this government assesses costings, they probably wouldn’t have even included this cost as a part of the cost of the whole project.

“This is like… You’re buying your first car and your parents pledge to buy the steering wheel cover.”

Major Projects Canberra is developing the draft Environmental Impact Statement (EIS) for the construction of Light Rail Stage 2B. Canberrans can have their say on the proposed light rail stops and associated infrastructure, landscaping and heritage matters that will inform the development of the draft EIS.

“I encourage people living along the future line and public transport users to get involved by having their say on the design of the transport corridor,” Mr Steel said. “This feedback will be used to inform the draft EIS and ongoing design of the project.”

The ACT Government’s own analysis, published last week, stated that light rail supports the construction of more housing, increases public transport patronage, and reduces congestion.

The Commonwealth will also provide $100 million through a new national Active Transport Fund to upgrade and build new bicycle and walking paths.

“There will be more to say at Budget time about further investments for the ACT and other programs of national importance,” the federal ministers said.

The Federal Budget will be published next week.