It has come to light that over $1.46 billion designated for projects in regional New South Wales (NSW) was diverted to cover cost overruns in metropolitan areas during the previous administration led by the Liberal and National parties.
The government-managed fund, Restart NSW, which is mandated by law to allocate 30 percent of its budget to regional communities, fell short of this goal during the previous government’s tenure. Only 24.4 percent of the funds disbursed during that period found their way to regional NSW, resulting in a staggering $1.46 billion intended for regional development being redirected to Sydney and metropolitan areas.
Even considering commitments made by the former government, the allocation to regional NSW only increased to 27 percent, with metropolitan NSW receiving a substantial 73 percent of the total fund commitments.
Some of the projects funded within metropolitan NSW, including the Metro West project, experienced significant cost overruns, with Metro West alone seeing an increase in costs of up to approximately $12 billion under the Coalition’s administration.
Currently, the Restart NSW Fund holds only $2.8 billion, necessitating that 67 percent of the remaining funds must be allocated to regional NSW to meet the mandated 30 percent benchmark.
Additionally, incoming government briefings have unveiled that the previous Liberal and National government left behind more than $7 billion in unfulfilled promises, including a failure to fund 1,100 nurses in NSW hospitals after June 30, 2024, a $700 million shortfall for children in out-of-home care, and a school repair backlog of $1.2 billion.
Speaking on this matter, NSW Treasurer Daniel Mookhey stated, “Regional communities deserve their fair share, and that is precisely what we will prioritize in the upcoming budget.”
Minister for Regional NSW, Western NSW, and Agriculture, Tara Moriarty, expressed, “Regional NSW has been neglected for far too long, as the previous government favored their pet projects over investments in regional services and infrastructure. We are committed to delivering for NSW’s regional communities.”
Clayton Barr, State Member for the Electorate of Cessnock, criticized the former Coalition government, saying, “Labor had raised concerns with National MPs over the past decade, but they chose not to listen. Their inattention has inflicted a decade of hardship on regional NSW. When you have a Liberal-National ‘Coalition,’ you can be sure the Nationals won’t have access to the state’s financial books. It’s a shame that our regions have been overlooked for so long.”