The federal government has rejected claims it plans to cut $678 million from a key infrastructure project that would connect outback Western Australia to country Queensland.
The Outback Way is a 2720 kilometre stretch of desert road that runs from Laverton in Western Australia, through Alice Springs, to Winton in Queensland.
The Australian on Monday reported $678 million committed by the previous Morrison government had been cut from the upcoming federal budget, after it was omitted from a list of key infrastructure projects.
Responding to questions about the omission, a spokeswoman for Infrastructure minister Catherine King said the report was incorrect.
"We are committed to the project and are working through delivery with the WA and NT governments," she said.
"What was announced on the weekend was the funding for our election commitments, not the total of infrastructure funding."
The report prompted Liberal MP for O'Connor, Rick Wilson, to write to the infrastructure minister, seeking further confirmation the funding would be honoured.
Mr Wilson said he was pleased with Ms King's comments, but remained sceptical.
"Until we see that line item in this year's budget, then, as far as I'm concerned, this project is still up in the air," he said.
Mr Wilson said he was surprised the project was not viewed as a priority for the government.
"It is a nation-building project, and I'm very surprised that if the Prime Minister announces an investment pipeline — his priorities effectively — that the Outback Way was not included in that, so that does give me concern," he said.
WA playing catch-up
Funding to upgrade and seal the road has been ongoing since 2013, with the federal government providing more than $1 billion towards the project since its inception.
The latest commitment would result in Western Australia receiving $400 million to upgrade about 800 kilometres of road, while Queensland and the Northern Territory would receive $154 and $124 million respectively.
Proponents of the Outback Way hoped the cash would speed up work in WA after the state fell behind its eastern counterparts.
Outback Highway Development Council chairman Pat Hill said most of the sections in Queensland had been sealed, while the Northern Territory was making good progress.
Mr Hill said land and native title negotiations were slowing the project, but expected a resolution would be reached by the end of the year allowing work to proceed.
"It is just really the process that we've got to work through to get this happening and, hopefully, before Christmas, we'll have it sorted out so that we can resume," he said.
Tanami upgrade to begin next year
The Outback Way was not the only regional infrastructure project to be confirmed ahead of next week's budget, with Ms King announcing $400 million would be allocated to help seal the Tanami Road in the state's north.
The announcement matched a commitment made by the previous government back in April.
One of the main routes from the Kimberley into the Northern Territory, the Tanami stretches 1035 kilometres from Halls Creek to Alice Springs, and is largely unsealed.
Halls Creek Shire maintains the 313 kilometres of road on the WA side of the border.
Shire president Malcolm Edwards said the news the federal government was matching the previous commitment was fantastic.
He said construction on the Tanami was expected to begin in 2023 along the Great Northern Highway through to Ruby Plains, with the whole road to be sealed by 2030.
