Opposition Leader Basil Zempilas warns of cost blow outs to WA infrastructure projects amid Iran war

WA infrastructure projects could face cost blowouts, be delayed or paused under price pressures prompted by the US-Iran energy war, Opposition Leader Basil Zempilas has warned.

The State Liberal leader said rumblings had already begun in the construction sector over the implications higher fuel prices would have on major projects and called for the Cook Government to make “common sense” decisions on determining priorities.

Mr Zempilas claimed the Buswood racetrack redevelopment and Tonkin Highway extensions had been raised by stakeholders as possible projects to be placed on the back burner as the State responses to the energy crisis.

“I think that’s sensible. I think that is the common sense approach,” he told reporters on Thursday.

“I think everybody in our community would understand... diverting resources and energy into other areas of Western Australian life takes priority at this time.”

“Everything is going up at the moment. We know that the next period is an uncertain one, financially and economically.

“Managing that is going to be something that both the Federal and State Governments need to turn their full attention.”

Treasurer Rita Saffioti told The West Australian last week she expected there would “clearly” be impacts on “Government infrastructure projects” but insisted it was too early to calculate the drain on the State’s coffers.

“Clearly we expect to see the impact of rising oil prices flow through the economy, particularly on both private sector and Government infrastructure projects,” Ms Saffioti said.

“It will take some time for the full impacts of those increased costs to flow through the supply chains, but we’re monitoring the situation very closely.”

The Treasurer likened the economic shock to the State as similar to COVID-19 or the Russia-Ukraine war but insisted WA had proven capability of safeguarding the economy.

“It’s important to remember Western Australia has been through these types of economic shocks before, particularly in recent years with the impacts of COVID and the Russia-Ukraine war,” she said.

“Our Government has always worked closely with our industry and business partners to respond to these impacts and protect Western Australia’s interests.”

It comes as Ms Saffioti visited a construction site for the Perth Surf Park in Jandakot on Thursday morning.

When asked again about the Government’s infrastructure plan amid the global uncertainty, Ms Saffitoti said it was important to continue the projects for the jobs and economic growth they deliver.

“We can’t stop the economy. These projects help the economy grow, which help create jobs,” she said.

“We’re not going to create uncertainty. Just like through COVID, there were arguments to stop everything.

“But by maintaining the resources sector growing, by continuing to deliver our projects, we continued jobs growth, and that’s why the economic impact of COVID was the least than any other State.”