Rail project axing pulls ‘economic rug’ from regions
National lawmakers have launched a bid to block a multibillion-dollar rail project through regional communities from being cut from the federal budget.
The federal government announced on Tuesday that it would cancel the $45 billion inland railway project in its budget, citing cost increases.
The railway was planned to be built between Melbourne and Brisbane, but will instead stop at the central NSW town of Parkes after its projected cost tripled over six years.
National leader Matt Canavan said regional centers would be most affected by the end of the project.
“There were going to be a lot of benefits from this inland rail project and not only has the government completely removed the economic barrier to these great communities and businesses, they’ve done it with zero consultation,” he told reporters in Canberra on Monday.
“We’re determined to find a way to do this at a reasonable price, at a cost that gives back to our country.”
Citizens launched a “save our railway” petition calling for the decision to halt the project to be rescinded.
Opposition transport minister Bridget McKenzie said reports detailing cost increases on inland rail had not been made public.
Senator McKenzie said the coalition would seek to establish a Senate inquiry into why funding was cut.
“We want to invest in such projects and will not bow to Labour’s callous and reckless decisions,” he said.
This comes after the federal government announced $50 million for rail improvements between Canberra and Sydney as part of the budget.
Funding will be provided by the NSW and ACT governments.
Improvements to the rail route will begin in late 2026 and will include new express services, track upgrades to increase speeds and station upgrades.
“More than 3,000 people travel by air or bus between Sydney and Canberra every day, and tens of thousands more travel on the Federal Highway,” Federal Transport Minister Catherine King said.
“Many of these regular commuters have consistently called for a more frequent and faster rail alternative.”
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