Goulburn Mulwaree Council defers rail trail for grants

However Goulburn Mulwaree Council has endorsed the 25km trail as a 'priority project' during advocacy to government and other bodies for grants.

The decision came at the most recent council meeting at which councillors were told the organisation did not currently have the funds to build or maintain a rail trail.

They were also advised a business case had forecast a cost benefit of 3.03 if the rail trail between Goulburn and Graywood Siding at Woodhouselee went ahead.

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The study, funded by a government grant, also projected an $18.275 million cost, 66,065 visitors and users and a $7.3m economic injection annually.

But it comes at a time the council is considering a 40 per cent special rate variation, on top of a 3.5pc rate peg in 2024/25.

Cr Bob Kirk has backed a rail trail in some form for many years. He said although the costings were "way more than expected" and outside the council's current means, the project stacked up if grants became available.

"What other publicly owned project can we as a council put forward that will achieve anything like a $7.3m return to the community year in, year out?" he said.

"It might be a major outlay and it's totally reliant on grant funding but it has a cost-benefit of three times, with the capital to be repaid in eight years. Find me a better project to support."

Consultants, Mike Halliburton Associates, concluded the project was feasible. The study focused largely on a route utilising the disused rail corridor, linking in with the Goulburn riverwalk and its extensions.

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They suggested a three-stage construction: Goulburn to Norwood; Norwood to The Forest Siding; and Forest Siding to Graywood Road. It would involve removal of disused rail lines and repair and refurbishment of eight bridges.

A quantity surveyor's report put construction cost at $17.98m but stated this did not consider heritage, ground contamination, asbestos and demolition, among other aspects.

But forecast annual maintenance costs of $61,150 have come under scrutiny.

A steering committee, comprising Crs Kirk, Michael Prevedello, community representatives and council staff, believed these costs "appeared to be exceedingly low."

"The figure is more likely to be closer to $150,000 to $200,000 per year when taking into account staffing, materials and insurance," the committee's report stated.

"It was also noted that as time goes by, at the five-year mark, maintenance costs will increase."

Cr Andy Wood said the very idea of a rail trail was "untenable" when the council was considering was considering a special rate variation.

He said he'd been happy to conditionally support the project up until now but he was withdrawing support. He described the business case as "flawed."

"I could be kind and circle with crayon the schoolboy shortcomings in this business case but that would be cruel to the steering committee who poured their hearts and dreams into this project," Cr Wood said.

"So much of the modelling and supposition is based on figures that are (five to nine years) old...The costs put forward are extremely optimistic at best."

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Cr Wood argued the failure to address biosecurity "even at this stage" was a "deal breaker" for him and many farmers, and community consultation "had been limited." He believed the rail trail could take 10 years, by which time costs would have risen.

But Cr Michael Prevedello said these aspects would be addressed as the project developed.

"Yes, it's outside our means at the moment but this is a once in a decade chance to get behind an infrastructure project of this kind," he said.

"Endorsing the project sends a clear message to government in regard to funding."

Earlier in the meeting, steering committee member, Darren Plumb, told councillors during open forum that he was concerned about the maintenance costings, "scope creep" and the overall cost given there was "no foreseeable funding."

"I'm not dead against it but I'm extremely wary given the council and community's financial situation. If it goes ahead, it will have to be by grants," he said.

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Mayor Peter Walker and deputy mayor, Steve Ruddell, also spoke against the project's endorsement. The former argued more reports would be needed to have the rail trail ready for grant applications and there was no budgetary allocation for these.

But six councillors voted in favour of endorsing the rail trail as a priority project for funding advocacy and to hold it in abeyance until further involvement was necessary.

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