Labor’s $1b of election promises could push out infrastructure project timeframes
Labor’s election promises will add $1 billion to Western Australia’s net debt over the next four years, according to costings released on Wednesday by Treasury.
Under Treasurer Michael Barnes warned adding projects to the state’s infrastructure schedule could lead to time blow-outs.
Labor’s elections promises as of February 11 will add $1 billion onto the state’s debt pile.Credit:WAtoday
“Given the already very large asset investment program reflected in the pre-election financial projections statement, there is a risk that some of the infrastructure projects may not be delivered within the specified timeframes,” he said.
“It is also noted that some election commitments are subject to financial contributions from third parties, including the Commonwealth government.
“These contributions are subject to finalisation of negotiations with the relevant third party.”
The costings were for 126 different projects and programs announced by Labor as of February 11, with the last inclusion on the list a $55 million bridge over the Mandurah estuary.
Treasury found Labor’s costings to be “reliable” except for an extra $500,000 needed to meet the party’s commitment to deliver a mobile state operations command centre for WA Police.
Labor’s promises would knock between $100-$200 million off each of the four years of projected budget surpluses for WA.
Net debt would be sitting at $41.2 billion instead of $40.2 billion in 2023-24 under Labor’s plan.
Peter de Kruijff is a journalist with WAtoday.