Budget funds drive Penola Bypass project

FIRST BUDGET: Treasurer Rob Lucas unveils his first budget yesterday in Adelaide. Picture: RAQUEL MUSTILLO

FIRST BUDGET: Treasurer Rob Lucas unveiled his first budget today in Adelaide. Picture: RAQUEL MUSTILLO

AFTER six decades of debate, the long-awaited Penola Bypass is expected to be complete in 2020 with the Marshall Government committing to stage two of the project in this year’s state budget.

In the Liberals’ first budget in 17 years, Treasurer Rob Lucas announced the two-year, $14.6m works on the town’s main street detour will be undertaken within the current financial year.

The State Liberals will commit $2.8m to the project’s total cost in 2018/19, complementing the Federal Government’s existing $9m funding pledge.

The additional funds will be allocated in next financial year’s state budget.

Member for Barker Tony Pasin praised the funding announcement as a “long-awaited win” for the region.

“To finally have its completion committed to in the State Budget is a huge relief considering what we went through with the previous State Labor Government, which refused to accept federal funding to see stage two completed,” he said.

“I fought for $9m in federal funding to complete the bypass, which the previous State Labor Government refused to accept.

“It’s great to be able to work with a Liberal government to achieve outcomes for our community.”

The first and southern stage of the bypass was completed in 2015, with the previous State Government funding the 2.5km section between Robe Road and Riddoch Highway.

The Federal Government’s contribution for stage two, earmarked in 2015 as part of the South Australian Regional Roads Package, was rejected by the former Labor administration citing “GST implications” on its revenue.

Wattle Range Mayor Peter Gandolfi welcomed the funding, which was identified as a priority project in council’s ambitious pre-election wish list.

“It has taken many years of hard work to secure the corridor and have the bypass built,” he said.

“Some said it would never happen, but after more than 60 years of debate, it will now be completed.

“I thank the government for committing to finish it.”

In addition to the bypass, the budget provides $315m over four years to upgrade regional roads and transport networks through the Regional Roads and Infrastructure Fund – supported by 30pc of mining royalties.

Mr Lucas said while it was “naive” to think the funding would solve all of the issues across country roads, the royalties scheme was aimed at addressing vital infrastructure upgrades.

“We obviously hope royalties and mining growth will continue so that 30pc figure will grow in the future,” he said.

“I think when we announced in the budget we talked about a fund of $300m, but because royalties are a bit higher I think the number is $315m.

“It is a lump of money which is going to be allocated towards it and we will also in some cases negotiate with the Commonwealth.”

Mr Lucas did not commit to addressing infrastructure or reinstating the 110kph speed limit along Clay Wells Road, saying “that’s essentially an issue I will have to leave with Minister Stephan Knoll”.