The Federal Government’s decision to reject funding for the next stage of the Northern Rivers Rail Trail has triggered disappointment and political backlash, with councils and local MPs warning the setback threatens a major tourism and economic opportunity for the region.
Lismore City Council confirmed this week that its joint $42 million funding application with Byron Shire Council to deliver the Lismore-to-Bexhill section had been unsuccessful.
The same application also included funding for the Mullumbimby-to-Crabbes Creek section of the trail through Byron Shire.
Despite the rejection, Lismore City Council Mayor Steve Krieg said council remained committed to the long-term vision for the project.
“We are disappointed in the funding decision handed down this week; delivering the rail trail through Lismore remains a strategic priority for Council,” Mayor Krieg said.
“From an economic development perspective, the Northern Rivers Rail Trail continues to represent a significant long-term tourism, visitation and connectivity opportunity for the Northern Rivers.”
“The strategic rationale for the project remains strong.”
Council said it would now review completed planning work and continue preparing for future grant opportunities, while also incorporating rail trail considerations into North Lismore infrastructure planning wherever possible.
“We are continuing to plan ahead so we are ready to move when future funding opportunities arise,” Mayor Krieg said.
Byron Shire Council Mayor Sarah Ndiaye said the funding rejection was a major blow after councils had waited more than two years for an outcome.
“We applied for this funding through the Regional Precincts and Partnerships Program more than two years ago and we have been waiting patiently, so to be told now that it has been unsuccessful is a massive blow,” Mayor Ndiaye said.
“The rail trail is the key piece of infrastructure that will link communities both in the Byron Shire and across the region.”
“The benefits to our economy, tourism, passive recreation and transport are obvious and we have waited so long to hear of the outcomes of the grant application, so this news really is crushing.”
Mayor Ndiaye said the long-term economic and tourism benefits would outweigh the construction cost.
“I know the construction of the rail trail is a massive cost, but I have no doubt it will pay for itself ten-fold in terms of community benefit, environmental outcomes, tourism and business investment,” she said.
“We are entirely dependent on State and Federal Government funding to build the rail trail and the longer it takes to secure the money the more expensive it will be.”
She noted that the rail trail was already operating at both ends of the corridor.
“The rail trail is open and operating from Murwillumbah to Crabbes Creek at one end and Casino to Lismore at the other with a missing link in the middle,” Mayor Ndiaye said.
“We have no option now but to put our disappointment aside, regroup and work on a new way forward.”
The funding rejection also drew sharp criticism from Federal Member for Page Kevin Hogan, who accused the Albanese Government of abandoning the region.
“There has been no new Federal funding for the Rail Trail since I secured funding for the Lismore to Bentley section in 2021,” Mr Hogan said.
“Since then, the Government has failed to step up and finish the job.”
Mr Hogan said the existing sections of the rail trail had already proven successful in attracting visitors and boosting local businesses.
“The Rail Trail has already proven itself as a major success story,” he said.
“The completed sections are attracting thousands upon thousands of visitors and delivering real economic benefits to local towns and businesses.”
He said the next stage through Lismore had strong support and was effectively ready to proceed.
“The next stage through Lismore was ready to go. Councils were working together. The community was behind it. The economic case stacked up. But Labor has walked away.”
Mr Hogan said usage numbers on completed sections demonstrated strong community demand.
“We’ve already seen the numbers far exceed expectations, with close to 100,000 users on parts of the trail each year,” he said.
“The community has done the hard work. Councils have done the planning. What’s missing is leadership from this Government.”
He pledged to continue campaigning for the project despite the funding setback.
“I will keep advocating strongly for the Rail Trail because this project has enormous potential for our communities and our local economy,” Mr Hogan said.
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