States blamed for AusLink cost blow-outs, delays

<p>Federal transport minister Warren Truss has teed up the states to take much of the blame for problems besetting AusLink.</p> <p>Australia’s chronic skills shortage and surging demand mean the $15bn infrastructure upgrade faces delays and cost over-runs.</p> <p>&#8220Some of the cost pressures facing the states are self inflicted: the imposition of large state bureaucracies: red tape adds massively to road costs and results in long delays to many projects,&#8221 Mr Truss told the <em> Australian Financial Review </em> in a report published today (Tuesday, June 13).</p> <p>&#8220We are concerned that the states have become notorious for long project delays and we are anxious to see projects begin on time.&#8221</p> <p>The affected projects mostly centre on road and highway upgrades and the newspaper highlighted the cost of the South-East Queensland Infrastructure Plan rising 20% to $66bn and the Perth-Bunbury highway soaring to $500m from $160m.</p> <p>New South Wales and Victorian transport ministers hit back, saying the financial mechanism, whereby Federal Government funds either all or 80% of a project, was unrealistic. Canberra increased funding in the first five years by 20% to $15bn in last month’s budget but NSW roads minister Eric Roosendaal said payments should be indexed.</p> <p><em>Lloyd’s List DCN</em> is awaiting comment from the state ministers. </p> <br />