THE federal government has been accused of ‘‘selling out’’ regional centres such as Newcastle by reallocating $52million that Labor promised to start planning for an east coast high-speed rail link.
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But the government says the money was only to ‘‘splurge’’ on a new planning authority for the project, creating more bureaucracy, and it is working instead with the states, including NSW, towards the preservation of a corridor.
A recent federal budget estimates hearing was told the $52million was an ‘‘election commitment’’ from the former Labor government to establish a high-speed rail planning authority and work to preserve a route from encroachment by urban sprawl.
Department of Infrastructure and Regional Development secretary Mike Mrdak told the hearing the money had been reallocated ‘‘to other priorities of the [Coalition] government’’, but could not name a specific project.
Labor’s infrastructure spokesman, Anthony Albanese, said yesterday the government was withdrawing its support, throwing into doubt a project that could ‘‘revolutionise’’ interstate travel.
‘‘It will also deny dozens of cities and towns along the route the economic benefit of the project,’’ he said.
Australasian Railway Association chief executive Bryan Nye said a planning authority would be needed, but securing the support of the states and the ACT was the first priority.
‘‘The whole focus should be what is Australia going to look like in 30 years’ time,’’ he said.
Newcastle could be ‘‘a much bigger centre’’ to alleviate population growth pressures in Sydney.
‘‘What high-speed rail has done overseas is develop the regions,’’ Mr Nye said.
A spokesman for Deputy Prime Minister Warren Truss said yesterday a planning authority would only create more bureaucracy.
The government had ‘‘engaged states and the ACT on the suitability of their legislation and budgets to preserve a corridor’’.
‘‘The government will continue to work within its means to seek the agreement and ongoing support of the governments of Queensland, NSW, the ACT and Victoria before committing to implement high-speed rail,’’ the spokesman said.
Asked yesterday of any discussions, NSW Transport Minister Gladys Berejiklian said: ‘‘We have always said we support the development of high-speed rail and are happy to work with the Australian government to ensure that high-speed rail is integrated with other public transport.’’
