Onus on state in rail cash shunt

DEPUTY Prime Minister Warren Truss has shifted the burden of future funding for Tasmania’s ailing rail system onto the State Government after a significant cash shortfall for the important infrastructure work in Joe Hockey’s Budget.

The Federal Infrastructure Minister’s office yesterday told the Mercury the Federal Government would wait on a commitment from the State Government before it put in an additional $60 million.

The Federal Budget dedicated $59.9 million for railways over four years after previously promising $119.6 million over a five-year period for Tasmanian Rail-Freight Revitalisation.

“The Australian Government has agreed to a 50:50 funding split on projects on the Tasmanian freight network totalling $120 million,” a spokesman for Mr Truss said.

“We appreciate Tasmania has been left in difficult financial circumstances due to the economic mismanagement of the former State Labor Government.”

State Infrastructure Minister Rene Hidding said Mr Truss had promised a second tranche of funds, worth a further $59.8 million, in future budget years, subject to the State Government matching the funds — which the State Government intended to do.

Federal and state Labor yesterday accused the Government of walking away from its commitment.

“We understand that Federal Minister Warren Truss has made this cut because the Tasmanian Liberals have abandoned their side of the deal. This is a $100 million cut,” State Oppositon Leader Bryan Green said.

Federal Labor MP Julie Collins described the reduction as a broken promise.

In the lead up to the 2013 federal election then infrastructure minister Anthony Albanese announced a joint $240 million pledge that was adopted by the Coalition.