Road funding uncertainty must end

Published | 28 August 2024

RACT has called for an end to the uncertainty over infrastructure funding caused by delays in finalising the new Land Transport Infrastructure National Partnership Agreement.

The previous agreement expired on 30 June and infrastructure contributions from the Commonwealth have been frozen until a new agreement is signed.

Our Chief Executive Officer, Mark Mugnaioni, said it was past time to remove the cloud of uncertainty hanging over infrastructure projects in Tasmania.

“It is pleasing to see the Tasmanian Government has taken a firm stance against the Commonwealth’s proposal for a 50:50 funding split which would seriously impact Tasmania’s future infrastructure projects,” Mr Mugnaioni said.

“As a state with a decentralised population and an extensive rural road network, any decrease in infrastructure spending would impact people living in regional areas the hardest.

“With rates of deaths and serious injury on Tasmanian roads historically higher than the national average, pulling back or delaying road safety upgrades can literally be a matter of life or death.

“We advocate strongly for the preservation of the existing 80:20 ratio, or an equivalent, because it fairly reflects the relative funding capacity of the Commonwealth and the states.

Mr Mugnaioni said RACT wanted a funding arrangement that supports all states, and particularly smaller states to be able to fund essential infrastructure, particularly as the cost of works continued to rise. 

“It is important that we maintain the momentum of infrastructure investment, particularly as major projects such as the Bridgewater Bridge near completion.”

“We want to see clarity and the finalisation of the new agreement to restore certainty to the infrastructure pipeline and ensure that essential road safety and congestion measures delivered as quickly as possible.”