Despite 'no substance' behind it, Tuggeranong Parkway upgrade could return: ACT government

There was "no clear reason" to continue with the Tuggeranong Parkway upgrade while also undertaking major upgrades on other roads to the city from the southside, an ACT government spokesman said, while dangling hope that a feasibility study could recommend the project in the future.

The south-west corridor project was one of three ACT projects that federal officials revealed were no longer on Commonwealth's books. The previous Coalition government had earmarked $50.9 million towards the project aimed at reduced congestion and improve travel times, funding which has now been redirected to the light rail extension.

"It has always been unclear to the ACT government what the south-west corridor project was proposed to achieve. It appears that it was a federal Coalition thought bubble with no substance," the spokesman told The Canberra Times.

"The former Coalition government refused the ACT government's request to have the money redirected into the major bottleneck at Parkes Way, so we agreed in good faith to use small amount of funding to undertake a feasibility study on what upgrades could be delivered on the south-west corridor to inform future planning."

It was a "reality" that the ACT could not undertake major upgrades of all the roads to the city from the southside, the spokesperson said, "including Monaro Highway, Athllon Drive, Commonwealth Avenue and John Gorton Drive all at the same time as tearing up the Tuggeranong Parkway for no clear reason".

The Canberra south-west corridor package included upgrades to the Tuggeranong Parkway and improvements to intersections and feeder roads along the corridor, such as Athllon Drive, to ease congestion on the corridor, which is used by about 40,000 vehicles a day. Construction was due to begin mid-2025 and be completed by early 2031.

The feasibility study was still underway, he said, and for now the Commonwealth was redirecting the remainder of funding to other projects.

Infrastructure department officials confirmed on Friday the project was cancelled entirely from the four-year forward plan as part of consultation undertaken by Commonwealth officials with their state and territory counterparts to prevent overheating the construction market.

"There was a particular focus on projects that were likely the result of pork-barrelling efforts from the previous government," the spokesman said.

The Kings Highway corridor project, from the east of Queanbeyan to Canberra Airport, also had issues he said. Aimed at reducing travel time and congestion between the ACT and NSW, it covered a small portion of the end of the Kings Highway, along with part of Bungendore Road, Yass Road and a large portion of Pialligo Avenue.

There was no timetable for construction when it was cut.

The previous federal government had put $30 million towards the project that interfered with the planned extension of the runway at Canberra Airport, requiring the movement of Pialligo Avenue to the south.

The ACT government could not support funding "abortive road upgrades until those outstanding future planning and environment issues are resolved".

Design work for improvements to two sections of Pialligo Avenue at Brindabella Park and the intersection of Sutton Road and Oakes Estate Road was underway, and did not need to wait for the runway extension project to commence.

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Kristy McBain, Eden-Monaro MP and Regional Development Minister, stood by the ACT government's position to pull funding "to ensure we don't further strain a sector already facing labour constraints, inflationary pressures and cost increases due to supply chain challenges".

She also supported any future efforts by the government that neighbours her electorate to re-secure funding it just recently argued should be cut.

"I am committed to working with the ACT government on important projects that benefit the surrounding region and I will continue to support my ACT government counterparts in their endeavours to find additional funding for the Kings Highway going forward."

Along the with the cancelled $5 million of federal funds for resealing Boboyan Road, which could return under a different funding model, the Barr government agreed to federal cuts to ACT road upgrade projects totalling $85.9 million - the same amount being directed to help extend light rail from Alinga Street to Commonwealth Park.

The ACT government and Finance Minister Katy Gallagher have defended the decision to re-prioritise funding amid claims from the Canberra Liberals that cash is being "ripped" from important areas of the ACT to fund the light rail project.

Senator Gallagher said that "constructive" approach with state and territory governments was an improvement over how projects were announced by former Liberal ACT senator Zed Seselja, who "splashed around public money" on political priority projects.

Canberra Liberals leader Elizabeth Lee said the revelations highlighted the ACT government negotiated to cut funding from important road upgrades and diverted the money to light rail.

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