Future of infrastructure projects put under spotlight

The review, led by a panel that specialises in land transport infrastructure, will not look at projects already under construction or election pledges made by the government.

The infrastructure pipeline is worth $120 billion and has 738 projects, 162 of which have a government commitment of $5 million or less.

This is in comparison to 146 projects when Labor was last in power a decade ago.

Ms King said some projects in the pipeline had to be cancelled or delayed.

"A lot of them are completely underfunded, there's billions of dollars that are needed to actually deliver all of the projects in the pipeline," she told ABC Radio on Monday,

"That's new money we would have to find and we're just simply not in a position to be able to say today can we deliver each and every one of those projects and have we got enough money to do so."

The minister said she did not know the number of projects that could go, but the review would be made public.

"What I want to have very detailed knowledge of is with every single project that's in that pipeline at the moment is can it be delivered?" Ms King said.

Nationals senator Bridget McKenzie has hit out at the review, saying the government's "razor gangs" would be cutting critical infrastructure projects.

"Continually cutting back on infrastructure projects will be a handbrake on economic growth and a barrier to driving national efficiencies needed to support budget repair and tackling inflation," she said.

"At the very time when the government budget repair strategy should be to invest in productivity enhancing capital and cut back on unnecessary recurrent expenditure, Labor seem determined to do the opposite, dooming the nation to a slow and painful recovery."

Senator McKenzie said the review represented a loss for regional communities.

Ms King said smaller projects may be kept as part of the pipeline.

"Certainly it is my preference, that when we proceed with these infrastructure investments that there is a proper cost benefit analysis done," she said.

State and territory governments agreed to support the review at a meeting of national cabinet, with local governments to be consulted as the government considers priority projects and their ability to be delivered.

Infrastructure Australia forecasts as from May, there will be a shortage of about 95,000 workers on public infrastructure projects nationwide.

Industry Minister Ed Husic said while the previous government announced large amounts of projects as part of the pipeline, the infrastructure was never delivered.

"Being able to take a clearer view about whether or not these projects were actually going to deliver for communities and be able to make sure we've got the investment that supports communities is really important," he said.