The Princes Highway duplication to Colac was due to pork barrelling in a marginal electorate instead of economic priority, a new report claims.
The 89-kilometre stretch did not connect two important hubs and returned an “exceptionally low” benefit cost ratio, retutning eight cents in the dollar, the report said.
The Grattan Institute report, Roads to Riches: Better Transport Investment, said governments had spent unprecedented sums on road infrastructure, but had not spent wisely.
The report used the Princes Highway “spur” from Geelong to Colac as a case study, saying it was a curious inclusion on the national roads network.
The report said investment in the road had been among the highest per vehicle kilometre of any road on the National Network at a cost of $438 million since 2005.
This was “well short of a breakeven point, let alone a net benefit to the community”, the report said.
The road was of higher quality than many other national roads carrying more traffic.
“While Geelong is an important centre of commercial activity, it’s hard to see how Colac, with a population of 11,939 and no heavy industry, could qualify as a transport hub or commercial centre,” the report said.
“While some traffic from beyond Colac uses this section of road in transporting freight to Melbourne, its total use, measured as vehicle kilometres, is much lower than most other National Land Transport Network roads.”
The report said the Commonwealth Government had committed a further $185.5 million to duplicate the last 38 kilometres of the road to Colac.
The report said the Commonwealth agreed to fund the road in the 2014/15 budget before an assessment by Infrastructure Australia, which later said the proposal was not a priority.
The report noted that Corangamite was the most marginal seat in the country after the 2010 election.
It said the Geelong region was also a battleground in state politics with additions to the Geelong Ring Road being prominent in election campaigns for the seats of South Barwon and Geelong.
“Too much money has been spent on the wrong projects in the wrong places,” the report said.
But Corangamite MP Sarah Henderson hit back at the “biased, city centric” report, denying the duplication was a waste of money.
“As the Liberal candidate, I am incredibly proud to have fought so hard to deliver the funding to duplicate this road,” Ms Henderson said.
“Princes Highway West is an incredibly important transport link which connects Melbourne, Geelong, Warrnambool and Portland to South Australia.
“The highway is used by over 350,000 people each year which provides access to major tourist attractions such as the Great Ocean Road.
“The duplication of the Princes Highway between Geelong and Colac is vital infrastructure for our region.
“It is most regrettable that the report did not take into account the broader economic benefits of the Princes Highway duplication.”
