May 8, 2012

Budget 2012-13: Nation Building Infrastructure for the future: NSW

Over the next twelve months the Federal Labor Government’s ambitious capital works program will continue unabated, with the 2012-13 Budget delivering a further instalment of up to $1.2 billion to start, progress and complete a range of projects across NSW.

Under Labor, Federal infrastructure spending in the State has more than doubled
from $132 to $269 per person. That’s a record $11.8 billion over the life of our current six year Nation Building Program (2008-09 to 2013-14) going to rebuilding and renewing its road and rail infrastructure.

Nonetheless, in this Budget we go even further.


We have set aside $3.56 billion in new funding, which if matched dollar for dollar
by the NSW Government could be used to complete the biggest, most complex road construction project ever undertaken in this country within just five years: full duplication of the Pacific Highway.

While a Federal-State funding agreement is being finalised, money previously allocated will enable the rebuilding of three further sections to begin within the next twelve months:

  • Tintenbar to Ewingsdale
    – Federal contribution: $566.1 million.
  • Frederickton to Eungai
    – Federal contribution: To be finalised.
  • Nambucca to Urunga
    – Federal contribution: To be finalised.

During this same period, we also expect to complete work on other sections:

  • Construction of the new Bulahdelah Bypass.
    – Federal contribution: $303.6 million.
  • Straightening of the Herons Creek to Stills Road section.
    – Federal contribution: $53.0 million.
  • Construction of the new Kempsey Bypass.
    – Federal contribution: $618.0 million.
  • Straightening the Banora Point section.
    – Federal contribution: $349.0 million.

On any objective measure, Federal Labor is making real and substantial progress.


We will commission the private sector to design, build and operate a major, new intermodal facility in Sydney’s south west, one which will take 1.2 million trucks a year off the City’s road network and ultimately transform the movement of freight across the entire eastern seaboard.

Work will begin shortly on preparing the preferred site at Moorebank, including relocating Defence’s School of Military Engineering to new, modern facilities at Holsworthy Barracks.


We will take the next step towards securing Sydney’s status as a global city and Australia’s premier international gateway by getting the planning right for a new airport Australia and our economy so desperately needs.


While activity ramps up on these multi-billion dollar nation-building endeavours,
work on another is beginning to wind down.  By this time next year the nation’s two largest cities – Sydney and Melbourne – will finally be connected by a modern,
well-engineered and fully duplicated road.

After more than half a century of almost continuous construction work and the investment of billions of dollars, the massive task of rebuilding all 880 kilometres of the Hume Highway is on track to be completed by mid-2013.

Indeed, completion of the last remaining section – the Holbrook Bypass (Federal contribution: $224.8 million) can’t come soon enough, with the number of trucks using this major freight corridor set to nearly double within the next two decades.

In the coming twelve months, we also expect to finish the following projects:

  • Construction of a new passing loop at Hexham, part of the $1.1 billion upgrade of the Northern Sydney Freight Corridor.
    – Federal contribution: $20.6 million.
  • Construction of the new North Orange Bypass.
    – Federal contribution: $10.0 million.

The 2012-13 Budget also maintains funding for a range of initiatives designed to make our local roads better and safer including:

  • $19.1 million to eliminate another 96 dangerous black spots on local roads;
  • $249.2 million to assist councils to maintain and upgrade their local roads.

From the outset Federal Labor’s mission has been to reverse the neglect we inherited and invest in the modern, well-planned infrastructure that will make working people’s lives easier, our businesses more competitive and the national economy stronger, not just for the next five years but for the next five decades.

Across the length and breadth of the State that’s precisely what we are doing.  Federal Labor is setting NSW up for the future with great infrastructure which will stand the test of time.


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Project Status for NSW for 2012–13

Project Status for NSW for 2012–13