David Pocock's Canberra region city deal proposal gets non-committal response

The key Senate crossbencher behind a letter - countersigned by 35 business, sporting and community groups - sent to Prime Minister Anthony Albanese and ACT Chief Minister Andrew Barr late last week calling for commitment to such a deal to set up the fast growing capital and as it is the only Australian major city centre without one.

An urban renewal partnership between three levels of government, community and the private sector, a City Deal is designed to address under investment and could be a way to deliver massive infrastructure projects such as a Civic stadium, a new Canberra Convention Centre or a Canberra innovation precinct. City Deals were introduced in 2015 by then-prime minister Malcolm Turnbull.

A new stadium in Canberra City received backing from the Wallabies coach on Sunday, with Eddie Jones saying it would help the capital compete for some of the biggest sporting events.

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It remains federal Labor policy to overhaul and replace the Coalition's City Deals with a City Partnerships program.

"The Australian government is committed to establishing genuine partnerships between the three levels of government, business and the community in the task of building better cities, more liveable suburbs and stronger regional communities," a spokeswoman for Infrastructure Minister Catherine King said in a statement.

"The government will work with state and territory governments as we consider options to move from regional and City Deal approaches into a genuine partnerships model.

"Any future partnerships will be designed to support locally driven, place-based visions for urban and regional areas."

The Albanese government cites an example of infrastructure partnership with the ACT government as the $218 million in the October budget for Stage 2A of Canberra's light rail.

"We look forward to working with governments and communities on ways to shape and transform Australia's cities and suburbs into the future," the spokeswoman said.

There is no cost attached to the city deal proposal, but the letter to the federal and ACT leaders notes the current "constrained" budget position and seeks a financial commitment in the 2024-25 federal budget.

The Canberra Times also sought comment from the Chief Minister who is travelling overseas.

Mr Barr did not respond to questions on a specific City Deal or partnership, but instead focused on what he described as "significant" under investment into the ACT infrastructure projects throughout the nine years of the Coalition government.

"Since the new election of the Albanese government, there has been additional investment in the national cultural institutions, the national security precinct, light rail to Commonwealth Park and AIS Arena," he said in a statement.

"We are also expecting further investment in CIT Woden and the Garden city cycleway.

He also pointed to ACT government participation in Commonwealth plans for the still to be legislated Housing Future Fund, electric vehicle policy changes, the energy rebates coming in the May budget and Labor's policy to strengthen Medicare.