Federal budget puts a two-year hold on funding for Great Western Highway project

Treasurer Jim Chalmers revealed the Federal budget in Canberra on Tuesday night, confirming a two-year delay on work on the multi-billion dollar Great Western Highway project.

The slamming of the brakes comes just days after NSW Government officials spruiked the potential start of major work at the Coxs River Road section of the upgrade in just six months.

Now, Minister for Regional Roads Sam Farraway has called on the Anthony Albanese Government to "fess up to the people of regional NSW" and admit they're "cutting" funding for the project altogether.

The project was initially due to be jointly funded by the state and Commonwealth, with the total cost expected to be $4.5 billion. NSW has committed $2.5 billion and was leaning on the Federal government to come to the party with the rest.

"Now Labor has punted our start date off into the long grass," Deputy NSW Premier Paul Toole said.

"This is a transformative project that we've worked incredibly hard to make a reality because we know it will be life changing for the people that use the road every day."

Mr Toole said the project would now be in "go slow mode", and that would mean commuters using the Great Western Highway - the main thoroughfare over the Blue Mountains - would be condemned to "years more of sitting in traffic".

Mr Farraway said the delay basically put the Great Western Highway upgrade from Katoomba to Lithgow in never-never land.

"The delay is the oldest accounting trick in the book - it keeps the project alive on paper but allows Labor to spend the money elsewhere," he said, with the shortlists for tenders for the major works at Coxs River Road being sort through before the budget announcement.

"With the flick of a pen, contracts have been torn up, 3900 jobs have effectively been put on hold and we're none the wiser if Labor ever plan to back us in building this highway."

Mr Farraway says the Federal Government is contradicting itself when it says the budget is about "higher commodity" prices.

"Yet he is axing a project that would strengthen our supply chain and make the movement of commodities, supplies and products easier," he said.

"The delay is incredibly disappointing for NSW, for the families who use this road every day and the freight operators who have wanted this road made safer for so long only to see it gone."

Member for Calare Andrew Gee, who is also the Shadow Minister for Regional Health, Regional Education, Regional Development, Local Government and Territories, described the situation as "diabolical" after the future of regional projects and programs was made unclear.

He said the government either refused to reveal the future of projects, or axed the programs outright, and that was "a dagger through the hearts of the communities of Western NSW".

"$2.03 billion dollars was committed for the Great Western Highway in the May 2021 budget, but there's no word on what has happened to this money," Mr Gee said.

"It's a diabolical situation because communities have been campaigning for a better crossing over the mountains for years."

Business NSW, Regional Director for Western NSW, Vicki Seccombe said the highway funding cut was incredibly disappointing.

"The Great Western Highway upgrade is critical for increasing the economic capacity of Western NSW, enabling better freight connections, and improving road safety and travel times. If the Federal Government funding for this project does not eventuate, our Western NSW community and local businesses will be incredibly disappointed" Ms Seccombe said.

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