LAST year, Federal Minister for Infrastructure, Transport and Regional Development, Catherine King described the Inland Rail project as a “really significant project that the Australian government is very proud to be delivering for the Australian people”.

Less than 12 months later, the Labor Government has slashed the Inland Rail project.

Member for Northern Tablelands Brendan Moylan said the decision by Labor to effectively abandon the northern extension of Inland Rail is a devastating blow to Moree and the wider north-west of New South Wales.

“This is a project that was meant to transform freight efficiency, unlock investment, and support agricultural producers, yet Mr Albanese and his Labor mates have now walked away from delivering it in full,” Mr Moylan said.

“This will add to the growing uncertainty around the Moree Special Activation Precinct, which was also sold to the community on the promise of jobs, connectivity and long-term regional growth.”

NSW Nationals’ Leader and Shadow Minister for Regional NSW, Gurmesh Singh, said both the Minns and Albanese Governments lack any sort of vision for regional areas,

“To further cut supply chains during not only a drought, but a fuel and fertiliser shortage crisis is total mismanagement,” Mr Singh said.

“The Inland Rail project was far more than just a freight corridor; it was a driver of investment and jobs across regional New South Wales . . . a window of opportunity that has been slammed shut by the Labor Government.”

NSW Nationals Deputy Leader and Shadow Minister for Western NSW, Kevin Anderson, said the decision to abandon the project is a disaster for regional and western New South Wales.

“Federal Labor is robbing our regions, particularly western New South Wales, to pay Victoria, because the Minns Labor Government doesn’t have a long-term plan for infrastructure in New South Wales,” Mr Anderson said.

Geotechnical investigations at Skinners Creek bridge, north of Moree.

Shadow Minister for Regional Transport and Roads Paul Toole said Federal and State Labor have a track record of stripping projects that futureproof regional New South Wales.

“If it’s not jobs or infrastructure for Sydney, Newcastle or Wollongong, Labor doesn’t care,” Mr Toole said.

Federal Member for Parkes Jamie Chaffey said the Albanese Government has killed a project critical to the development of Australia’s sustainability and sovereignty.

“This decision is a huge betrayal of regional Australia,” Mr Chaffey said.

“It throws away the $3.5 billion already spent on this critical project which is approximately 17 per cent complete.

“Conservative estimates put the pre-construction sunk cost north of Parkes alone at $500 million to $1 billion – every dollar unrecoverable.

“More than 160km of upgraded track between Narrabri and North Star – which has been completed and operational since 2023 – is now a spur to nowhere, disconnected at both ends and generating no commercial value.

“Labor has said this is a financial decision, but the cost of this project that has been in the pipeline for 100 years will only skyrocket in the century ahead.

“Now, 200,000 truck movements each year are locked onto regional roads, and we are looking at no significant further capacity to grow our country’s productivity.

“That money is yet more funding ripped out of regional Australia to go to metropolitan areas.

“In 2011, Albanese called this project ‘central’ to lifting Australia’s productivity. Now, he is abandoning it and abandoning regional Australia.”

Mr Chaffey said, by cancelling Inland Rail north of Parkes, Labor is writing off $3 billion to $3.5 billion already spent; stranding 163km of upgraded track between Narrabri and North Star; and destroying CSIRO-verified freight savings of $64–$94 per tonne for agricultural producers.

Mr Chaffey said farmers from Parkes to Narrabri and Moree will continue paying road freight rates rather than accessing competitive rail costs that would have made Australian agricultural exports more competitive globally

Locking 200,000 truck movements per year onto regional roads — accelerating the degradation of highways and local roads that cash-strapped regional councils cannot afford to repair.

The decision to stop Inland Rail will abandon 750,000 tonnes of annual carbon emission savings, at a time when the Government claims to prioritise decarbonisation, Mr Chaffey said.

“This decision betrays regional property and business owners and community members whose lives, properties and businesses have been in limbo over this project since Labor came to power,” he said.

“The decision will trigger contract termination liabilities and stranded private sector investment, while sending a sovereign risk chill through Australia’s entire $270 billion national infrastructure pipeline – no long-term project is safe from Labor’s party politics.”

Mr Chaffey said regional communities along the corridor will be robbed of thousands of dollars’ worth of construction and permanent jobs, and the long-term economic stimulus that investment in regional freight infrastructure generates.

“The Coalition demands a full public accounting of every dollar wasted on this cancellation, including sunk costs, termination payments and stranded asset write-offs,” Mr Chaffey said.

“I and my National Party colleagues will continue to push for this project in the Coalition Party Room, and continue this fight with the Government to make sure we get this project back on track.

“Regional Australia deserves a government that keeps its word,” he said.