The Australian government has announced plans to build a second international airport in Sydney for A$5 billion (£2.9 billion).
The decision comes over 70 years after the idea was first suggested, and follows promises from successive governments.
“Sydney airport’s decision not to accept the [western Sydney airport notice of intention] on the terms provided is in the best interests of our investors who represent millions of Australians through their superannuation funds,” said Kerrie Mather, the airport’s chief executive in a statement.
“Despite the opportunities that WSA will present, the risks associated with the development and operation of WSA considerable and endure for many decades without commensurate returns for our investors.”
Malcolm Turnbull described the airport as a “vitally important project” for the country.
“The airport will be a major catalyst for jobs and economic growth in western Sydney, injecting more than $1.9bn into the economy during the construction phase alone,” he said on Tuesday. “It is expected to deliver 9,000 new jobs to western Sydney by the early 2030s, and 60,000 in the long-term.”
“It is a vitally important project for western Sydney, for Sydney, and the nation, which is why the Coalition government ended decades of indecision by committing to the project in 2014.
“The government has worked carefully to meet our obligations and we have been planning for either contingency – acceptance or rejection by Sydney Airport Group,”
Mark Greenhill, criticised the government’s decision of the new Sydney airport. He said it was a poor effort to display a short-term economic win at the cost of a long-term social and economic disaster.
“Sydney Airport Corporation’s decision not to accept the Australian government’s offer to build and operate the western Sydney airport vindicates the community opposition to this white elephant project that is decades in the making,”
Details of the airport’s plan will be shared next week when Turnbull’s government announces the annual budget.