NSW government set to delay mega projects amid COVID-19 pressures | Rabe9 Mattonews
are among the major projects likely to be deferred, as a senior government minister warns that rushing ahead with major builds would be “reckless”.
Infrastructure Minister Rob Stokes, left, and Premier Dominic Perrottet inspect a new rail tunnel late last year.Infrastructure and Cities Minister Rob Stokes confirmed the government was conducting a review into its major projects. He said the government intended to deliver the projects it had promised, but their timing needed to be reconsidered before committing to liabilities reaching into the “tens of billions”.
“I am being upfront and saying government is looking at all of these major projects right now,” he told the“Volatility in cost of materials, equipment, and the shortages in skilled labour means it’s really not the right season to commence more mega projects immediately.”While the Beaches Link is likely to attract some Commonwealth funding in the federal budget on Tuesday, it is unlikely to alter the likelihood of the state government delaying the project.
Mr Stokes said: “This is actually not a problem with money – this is a problem with market capacity.” Moves by state governments to fast-track mega transport projects to head off recession during the pandemic has resulted in an overheated construction market on Australia’s east coast. A breakout in inflation globally has added to the risks of cost blowouts in projects.NSW government finances are also under intense pressure after two years of pandemic spending.