Project funding goes off the rails
THE $40m the federal government will give TasRail to build a new shiploader at the Burnie port will come out of a fund earmarked for railway investment — and Labor says that raises rail safety concerns.
The replacement of the port’s ageing shiploader was announced this week.
The money to build the new facility will come from the Tasmanian Freight Rail Revitalisation program — but Right to Information documents show the state government believed the election commitment to upgrade the port facilities would be new money.
Labor says while the replacement was vital to growing Tasmania’s economy, it would be paid for by funds needed for rail network safety upgrades
“The government needs to find the money elsewhere or risk network deterioration, derailments and accidents in the future,” Braddon MP Shane Broad said. “Labor has called on the state and federal governments to include the port redevelopment in their COVID-19 stimulus packages.
“Infrastructure Minister Michael Ferguson wants people to believe he worked hard to secure federal funding for the project, and he thinks people have forgotten that promises to upgrade the port will be paid for by sacrificing rail safety.”
Mr Ferguson said Labor had “it completely wrong”.
“It is utterly bizarre that Shane Broad would complain about a project that benefits his own electorate,” he said.
“The shiploader replacement is funded from tranche three of the Tasmanian Freight Rail Revitalisation Fund. The Australian and Tasmanian governments are providing $136m in tranche three of the fund for projects that reduce the operational costs of freight movements, provide additional rail capacity, improve reliability and reduce transit times.
“The $136m of tranche three follows the $240m investment from the Australian and Tasmanian governments in tranches one and two of the fund. TasRail is currently working to deliver projects under tranche two. There is no reduction or compromise on other projects under tranche three, which are currently under consideration.”