Government pulls the plug on Barnaby Joyce 'pet project' as work on Inland Rail halts

A major part of a grand and costly infrastructure project in eastern Australia has today been scrapped over a $45 billion cost blowout.

The fate of Inland Rail was sealed after a new independent review found construction of the link between Melbourne and Brisbane would balloon by about 450 per cent.

Federal Infrastructure Minister Catherine King said the rail link would now end at Parkes in central NSW, about halfway to Brisbane, to save taxpayers' money.

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"The 2023 independent review found major deficiencies in the governance and delivery of Inland Rail by the Liberals and Nationals," she said.

"We are taking sensible decisions to realign the future of Inland Rail and build a safe, efficient and reliable network for the future."

Inland Rail has long been championed by former Coalition deputy prime minister and current One Nation MP Barnaby Joyce.

Speaking on Sky News today, he condemned the federal government's decision, saying it made no sense during the current fuel crisis.

"If diesel engines attached to prime movers pulling your groceries shut down … we actually have an alternative, but they decided to shut that - it's just beyond belief.

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"These are real assets that are doing a job, and it's been canned by a government that has no belief in regional areas whatsoever."

The peak farming body in NSW has also slammed the government's decision and questioned whether the minister knew the furthest point of the rail lines.

NSW Farmers President Xavier Martin said his organisation backed Inland Rail because moving freight more efficiently mattered to farm businesses and regional communities.

"But governments can't ask rural and regional communities to carry the burden of disruptive construction, then just change direction without accountability," he said.

"If Inland Rail is being 'refocused', then fairness for landholders, clarity for affected businesses and genuine freight capacity upgrades must be the non-negotiables."

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Martin questioned whether King was aware of already-constructed sections to Narromine, and between Narromine and North Star on the NSW-Queensland border.

Farmers and communities along the northern part of the corridor were still facing significant challenges in getting produce to market.

The federal government will preserve the remainder of the rail corridor to Brisbane in case a future government restarts the project.

To improve existing rail freight services, the Australian Rail Track Corporation will receive an extra $1.75 billion.

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