Canberra Liberals remain coy on budget funding for new diplomatic estate

The party avoided taking a position on the Morrison government funding on Wednesday, saying only that it would make the case to the Commonwealth. But Chief Minister Andrew Barr said the budget's funding meant it was time to "draw a line" under the issue, labelling the opposition to the estate a "political stunt" by the Canberra Liberals.

The federal budget earmarked $600,000 towards planning for a new diplomatic estate in Canberra.

It came after the Commonwealth and ACT governments agreed to trade a parcel of land in Lake Burley Griffin's West Basin for horse paddocks in Curtin earlier this year.

Canberra Liberals leader Alistair Coe has pledged to unpick the deal if elected at the upcoming October 17 poll. But the budget funding suggests the federal government intends for the deal to go ahead despite opposition from the local Liberal branch.

On Wednesday, the Canberra Liberals gave little away as to what they thought of the budget funding.

In a statement, a spokeswoman said the party would work with the federal government.

"We will work constructively with the federal government and make the case for Canberra on behalf of the local community," she said.

"We will protect the ACT government-owned land from Labor's high-rise apartment blocks."

However, Mr Barr said the Commonwealth had already made its decision and was unlikely to hand the land back.

"I think this demonstrates again what a political stunt that was from the opposition," he said.

"Mr Coe knows the Commonwealth have the power to gazette any land in the territory for a Commonwealth purpose."

Federal Minister for Territories Nola Marino signed off on the Commonwealth's securing of the land in March. At the time, she said it would "help meet anticipated growth for diplomatic land for the next 25 years".

The National Capital Authority had been searching for new land for embassies for years.

"We can draw a line under the local Liberals' stunt on this issue, it is very clear what the federal government's position on this is and there is no way they are going to de-gazette that land and hand it back after a 10-year process," Mr Barr said.

Mr Barr and Mr Coe had very different reactions to the budget.

Mr Coe called the coalition's federal budget, an "endorsement of his economic strategy".

"They are committed to lowering taxes, lowering the cost of living, delivering infrastructure - and that's what we are all about," he said.

But Mr Barr accused the budget of falling short.

He said there were a number of missed opportunities for Canberra and many would be left nervous about their job prospects.

He was particularly critical about a lack of support for tertiary education. He said the territory would have to fill gaps in the education sector left by the federal government.

"[The] budget the Commonwealth put in place a range of very worthy programs but it fell short in a couple of key areas that are critical to the ACT's economy," he said.

READ MORE:

Mr Barr and Mr Coe had very different reactions to the budget.

Mr Coe called the coalition's federal budget, an "endorsement of his economic strategy".

"They are committed to lowering taxes, lowering the cost of living, delivering infrastructure - and that's what we are all about," he said.

But Mr Barr accused the budget of falling short.

He said there were a number of missed opportunities for Canberra and many would be left nervous about their job prospects.

He was particularly critical about a lack of support for tertiary education. He said the territory would have to fill gaps in the education sector left by the federal government.

"[The] budget the Commonwealth put in place a range of very worthy programs but it fell short in a couple of key areas that are critical to the ACT's economy," he said.