Although this year’s budget swallowed $565 million of cost overruns on capital works,reflecting a 0.3 per cent net increase in costs in the year,that was significantly lower than the$5.8 billion blow to last year’s budget.
“However,the market capacity and material supply constraints have resulted in extended timeframes for some projects,particularly smaller projects under $100 million in value,” the budget papers said.
Construction on all 714 projects was taking an average 21 per cent longer to finish than last year’s budget predicted.
Major works,valued at more than $100 million,were less likely to be impacted. They surpassed their deadlines by 15 per cent and their budgets by 0.2 per cent,amounting to $391 million.
Infrastructure Australia last year warned Victoria faced unprecedented workforce challenges to deliver the construction pipeline,with a shortage of 214,000 skilled workers in 2022 and an estimated 248,000 in 2023.
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Shadow transport infrastructure minister David Southwick said delays would mean more congestion on Victorian roads,longer commute times and fewer jobs.
“Instead of delivering the major projects Victorians were promised,Labor’s brutal budget had added further costs,more delays and cancellations to the road,rail and public transport services our state needs,” Southwick said.
TheWestern Interstate Freight Terminal,the Andrews government’s preferred site to connect to the troubled Inland Rail project,which would carry freight up the east coast,does not appear in the budget at all while the federal review is underway. Last year’s budget included $6.1 million for a business case.
Despite concern among the industry and the opposition,the mode-shift incentive scheme to move freight from trucks onto rail,will be continued for another financial year at a cost of $3.5 million.
Last week,shadow freight spokeswoman Roma Britnell called on Pallas to provide long-term certainty by making the scheme permanent.
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