Rail project axing pulls ‘economic rug’ from regions

Andrew Brown |

The Nationals want the government to overturn its decision to cut funding for 1600km of inland rail.
The Nationals want the government to overturn its decision to cut funding for 1600km of inland rail.

Nationals MPs have launched a bid to stop a multibillion-dollar rail project through regional communities from being cut in the federal budget.

The federal government has announced it will scrap the $45 billion inland rail project in Tuesday’s budget, citing cost blowouts.

The rail was intended to be built between Melbourne and Brisbane, but will instead stop in the central NSW town of Parkes after its projected cost tripled in six years.

Nationals leader Matt Canavan said regional centres would be hardest hit by the project’s axing.

“So many benefits were to come from this inland rail project, and not only has the government completely taken the economic rug away from these great communities and businesses, they’ve done so with zero consultation,” he told reporters in Canberra on Monday

“We remain committed to finding a way to do it at a reasonable price, at a cost that will make a return for our country.”

The Nationals launched a “rescue our rail” petition calling for the decision to stop the project to be overturned.

Opposition transport minister Bridget McKenzie said reports detailing cost blowouts on inland rail had not been publicly released.

Senator McKenzie said the coalition would look to establish a Senate inquiry into why the funding was cut.

Nationals leader Matt Canavan
Regional centres will be hardest hit by the project’s axing, Nationals leader Matt Canavan says. (Lukas Coch/AAP PHOTOS)

“We want to be investing in these type of projects, and we are not going to take the Labor Party’s callous and reckless decisions lying down,” she said.

It comes as the federal government announced $50 million for rail upgrades between Canberra and Sydney as part of the budget.

The funding will be matched by the NSW and ACT governments.

Upgrades on the rail route will begin later in 2026 and include new express services, track improvements to increase speeds and station upgrades.

“More than 3000 people travel between Sydney and Canberra by air or coach every day, with tens of thousands more driving down the Federal Highway,” federal Transport Minister Catherine King said.

“So many of these regular commuters have consistently called for a more frequent and faster rail alternative.”

AAP