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The State Opposition says the Government's decision to revive the south-west rail link shows the plan should never have been dumped in the first place.
Premier Nathan Rees has been hinting for weeks that he would soon make a big-ticket transport announcement. He will formally make that announcement later this morning at the State Labor conference.
The Government axed the second stage of the south-west rail link in the mini budget.
But it will use funds from the partial privatisation of the electricity industry to pay for the new line.
The 11.4-kilometre link will run from Glenfield to Leppinton and two new train stations will be built.
But Opposition transport spokeswoman Gladys Berejiklian says the announcement confirms what the Liberal-Nationals have been saying all along.
"Only a year ago they dumped this project, so the Labor party has wasted yet another year on dithering and incompetence," Ms Berejiklian said.
"Now they've decided to put it back on the agenda kicking and screaming, because what the Liberals have been saying in New South Wales is what the people want.
"We need rail lines where the population is growing. That's in the north-west and south-west."
Urban Taskforce chief executive Aaron Gadiel says revival of the rail link is good news for tens of thousands of residents in the area.
"The south-west is destined to have 110,000 new homes. That's a city the size of Canberra," Mr Gadiel.
"But the worst thing that could have happened was that that area be deprived of public transport. So it's great to see that the project is going ahead now."
The electricity privatisation plan will be debated at the Labor conference along with the possible privatisation of Sydney Ferries.
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