The Federal Government’s decision to reallocate nearly $86 million from road infrastructure to light rail has left many wondering if the tram to Woden is on the right track.

Last month’s Federal Budget provided $85.9 million for Light Rail Stage 2A, from Civic to Commonwealth Park. Senate estimates on Friday, however, revealed that the $85.9 million came from cancelling three road projects: upgrades to the Tuggeranong Parkway ($50.9 million), the Kings Highway ($30 million), and Boboyan Road ($5 million).

David Hallinan, Deputy Secretary of the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, stated in Senate Estimates last week that the Commonwealth negotiated with the ACT Government to determine which projects should go ahead, cease, or have funding directed towards them.

“So it was about prioritisation and jobs prioritisation with the jurisdiction,” he said.

Chris Steel, ACT Minister for Transport and City Services, said the Tuggeranong Parkway upgrade was “a pork-barrel infrastructure project” by the previous Coalition government. It was, he said, ill-defined, and without substance.

“It was all about pork… Zed Seselja had no conception whatsoever about what that project would deliver. So it’s no surprise that the Federal Government targeted that project in the Budget.”

The ACT Government will undertake a corridor planning study that will look not just at the southwest corridor, the Tuggeranong Parkway, but at Parkes Way, the major bottleneck for commuters from both the south and north.

“Tuggeranong Parkway actually operates very effectively; it’s a dual carriageway, dual lane road,” Mr Steel said. “It’s when it enters Parkes Way that we start to see congestion.”

The government is installing traffic lights at the intersection of Parkes Way and Coranderrk Street to better regulate traffic flow.

The Federal and ACT Governments will undertake major construction works on every single major corridor from the southside into the city, Mr Steel said, including duplicating Athllon Drive and William Hovell Drive, the John Gorton Drive extension bridge, upgrading Monaro Highway, and major roadworks on Commonwealth Avenue for light rail.

“We simply could not undertake major construction works on all of those projects, all of those corridors from the south side to the city, at the same time as ripping up Parkes Way for no particular reason,” Mr Steel said.

“It’s really critical that we keep major arterial roads like the Tuggeranong Parkway open whilst we are undertaking major construction work on every other road going in to the city from the south side.”

Master Builders ACT

Master Builders ACT, however, claims that the redirection of funds will cost the ACT building and construction industry 773 jobs and more than $250 million worth of economic activity. 

Michael Hopkins, CEO of Master Builders ACT, said the road projects would have created jobs for small and medium sized local contractors, subcontractors, and suppliers. In his view, the light rail project was likely to be constructed by a tier 1 contractor from outside Canberra.

“Funding for the light rail project had already been committed by the ACT Government, and is likely.

“The Federal and ACT Governments should commit to a long-term infrastructure plan to support the Canberra region’s forecast growth, with increasing funding, rather than changing infrastructure projects on a whim,” Mr Hopkins said. 

“Long-term infrastructure planning helps the construction industry plan and skill the required workforce, communicates clearly to the community about upcoming infrastructure projects, and supports investment decisions based on committed infrastructure plans.

 “Changing infrastructure priorities at the last minute will dent industry confidence, leaving contractors with a feeling of which project is going to be cut next,” he said.

The Opposition

Also in Friday’s Senate Estimates, Robyn Legg, Assistant Secretary, NSW, ACT and Targeted Roads Branch, Infrastructure Investment,stated that light rail would commence in January 2024 and be completed by January 2026.

But Canberra Liberals leader Elizabeth Lee said: “There are a number of inconsistencies between the information the federal government is providing in regard to the tram and what the Minister is telling Canberrans, and he must be upfront.”

In ACT Annual Reports Hearings on Monday, the Canberra Liberals questioned Mr Steel about funding. The Liberals claimed that Mr Steel refused to provide a completion date for Light Rail stage 2A, and failed to adequately answer questions from Shadow Transport Minister Mark Parton regarding the cost and timeframe for stage 2 of the light rail.

“It is firstly astounding that federal government officials are able and willing to confirm the timeframe for the completion of stage 2A, and yet the responsible ACT Minister cannot and will not be upfront with the public,” Mr Parton said.

“It is also telling that the Minister would not correct the assertion that stage 2 in its entirety will cost over $3 billion and not arrive in Woden until at least 2034.

“This entire project is shrouded in secrecy, and by the Minister’s own admission, regardless of what the business case says, the Labor-Greens government will push ahead with the tram to Woden, even if it does not represent value for money.”

Ms Lee said the information out of Senate Hearings last week begs the question: what else is on the chopping block?

“In hearings … the Minister said all ACT road projects were considered for the chopping block in order to divert funds to the tram,”, Ms Lee, who is also Shadow Minister for Major Projects, said.

“We already know the ACT Labor-Greens government has taken hundreds of millions of taxpayer dollars from health and public housing to pay for the tram.

“Canberrans have every right to feel betrayed by Labor and the Greens’ decision to rip $85.9 million out of these very important road upgrades.”

The ACT Government has been contacted for comment. More to come.