A VERY fast train between Sydney and Newcastle could be used to shore up voters in Labor's Hunter heartland before the federal election.
The ALP is deeply worried about losing seats in the region amid fears that the NSW Government's poor performance will hurt the party at a federal level.
A senior Labor source has told The Herald that the Rudd Government will announce a public-private partnership for a fast inter-city train before the election this year.
The source said Federal Infrastructure and Transport Minister Anthony Albanese was supportive of the plan.
While Mr Albanese said he had not approved any study for a fast train, he said he would welcome submissions on public transport to Infrastructure Australia.
"I have said I'm a supporter of an increase in usage of rail of all sorts," he told The Herald this week.
Labor sources confirmed the very fast train plan was back on the drawing board.
The concept was most recently raised last month by the Co-operative Research Centre for Rail Innovation, a group supported by universities and the Federal Government.
The group proposed a national network of trains travelling at about 250 kmh.
At the time, Minister for the Hunter Jodi McKay said the development of any fast train network would need to be done as part of the NSW Government's transport blueprint and in partnership with the Commonwealth, the private sector and the local community.
Federal MP for Newcastle Sharon Grierson acknowledged there was enthusiasm for a fast train but she did not know of any firm proposal.
There had been more interest from the private sector in infrastructure projects since the economy had recovered, she said.
"For such a project to be put forward it would have to be feasible and that requires an alignment of many factors, like commercial interests and growth opportunities around the airport and new population growth," Ms Grierson said.
A federal election is due later this year and a state election in March next year.
Labor internal polling shows the party is in danger of losing seats in the Hunter and on the Central Coast at the state election.
A very fast train plan was aimed at clawing back ground in the state polls and insulating federal MPs against any state backlash.
Asked if the Federal Government needed a big-ticket item to take to the Hunter electorate before the federal poll, Mr Albanese said there was already more activity on infrastructure coming from the Commonwealth than ever before.
"We're about to start the $1.65 billion Hunter Expressway," he said.
Federal and state politicians have been under pressure in the Hunter over the roll-out of public housing projects under the federal stimulus plan.
There has been widespread anger that the NSW Government introduced legislation that allowed the Department of Housing to bypass councils and "self-approve" public housing.
Mr Albanese defended the plan, saying it had boosted the economy along with other infrastructure projects.
"NSW has done a very good job and we support what's been occurring," he said.
"Last week we saw unemployment fall to 5.3 per cent."