Highway funding delays draw ire of mayor

By Simon McGuire
Derwent Valley Gazette
26 Jun 2025
Lyell Highway

Derwent Valley Mayor Michelle Dracoulis has expressed concern about the delays in state government funding and the timeline for the $100m upgrades to the Lyell Highway corridor from Granton to New Norfolk.

The most recent state budget, which did not pass through parliament following a successful no-confidence motion against Premier Jeremy Rockliff that triggered a snap election, included $431,000 for the planned upgrades.

The improvements to the Lyell Highway are part of a wider plan to improve the road between Granton and Strahan, with the works expected to be completed by 2035.

Infrastructure Minister Kerry Vincent said that the funds were allocated for the initial stages of planning for the highway works.

“This includes $231,000 for road damage and remediation of a landslip following a severe weather event in August 2024 to allow the highway to reopen to two lanes of traffic,” Mr Vincent said.

“The development of any strategy around highway corridor upgrades is essential to ensure the prioritisation of projects and all funding allocations.

“Identifying what upgrades are required and the order of each stage is key to the success of the strategy and the sustainability of the project and forward budget estimates.”

The strategy for the works between Granton and New Norfolk is expected to be completed by the end of this year.

Forward estimates from the recent state budget indicate that $1.2m would be spent on the upgrades until the 2028-29 financial year.

Mr Vincent urged the Derwent Valley community to be patient.

“We want to ensure Tasmanians can get home to their loved ones safely and sooner,” he said.

“We are working to smooth out the planning process so there is as little interruption at all for the workforce, the travelling public and the community.

“The Derwent Valley community has also welcomed the greatly improved connectivity to both the Brooker and Midland Highways with the opening of the new Bridgewater Bridge, which includes grade-separated interchanges at both Granton and Bridgewater.

“I thank people for their patience and for their input to the Lyell Highway Corridor Strategy, which will assist us with better outcomes for everyone.”

Ms Dracoulis, who is also running as an independent in the upcoming state election, said the slow progress on the Lyell Highway upgrades had been frustrating.

“I’m concerned about the cost blowouts, I’m concerned about whether or not it’s something we’ll actually be able to afford, and I’m concerned that the community’s been let down again.

“The message has been put out there and here we are waiting for something that may or may not be delivered.

“I understand Tasmania is a small state and has a tight budget, and that we should be making good decisions.

“But at the same time, if we’re putting messaging out to the community for expectation around improvement on road safety, it’s something that should be followed through on.”

Mr Vincent said the state government would consult with the public at each stage of the overall Lyell Highway upgrade process, adding that it would be subject to Federal Government funding requests.

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