The price tag for building a fifth lane on Hobart’s Southern Outlet has blown out by over $25 million, with the state government now looking to the Commonwealth for contribution to make the project a reality.
Originally envisioned as a $35 million project, the transit lane was first proposed to stretch from Olinda Grove at Tolmans Hill to Macquarie Street.
But the Liberals expanded the plan during the 2024 election campaign, committing to extending the lane all the way to Kingston.
According to the recently released 2024-25 state budget, the initial phase of the project is now projected to cost $62.5 million, with the possible extension adding an additional $100 million to the bill.
Labor leader Dean Winter said the project was the “dumbest” underway in Tasmania and “should never, ever have happened”.
“It makes no sense, won’t work, has already led to a loss of homes and there are much higher priorities south of Hobart but all over Tasmania,” he said.
“We’ve got a Bass Highway which is covered in potholes, it looks more like the moon than a proper piece of infrastructure.”
“You’ve got issues that simply haven’t been delivered like the Northern Suburb’s Light Rail, you’ve got a Channel Highway which is falling apart, the Huon Highway which needs major upgrades and yet the government is talking about a fifth lane project.”
Minister Michael Ferguson said the “very ambitious” extension to Kingston is an “important urban transport project for Hobart and the southern suburbs”.
“I can’t believe that Labor would bring this up. They threatened to tear it apart, that they wouldn’t go ahead with it and then they said that they would not spend the money,” he said.
“Well, we want it and we’re committed to getting it done.”
The planned T3 transit lane will be dedicated to buses, taxis, motorcycles, emergency vehicles and private vehicles carrying three or more people.
Construction on the first stage of the lane is due to start next year, while the second stage is contingent on a federal contribution of $80 million, with the state chipping in $20 million.
The Liberals have also requested $31 million from Canberra to match their own commitment to the first stage.
