The announcement by the Australian Rail Track Corporation that the Murrurundi Rail Tunnel will not go ahead

 shows the Gillard Government was not being honest in its deal with Independent Member for New England Tony Windsor.

The Nationals Senator for New South Wales John Williams says it hasn’t taken long for Labor to backflip on an agreement that was reached to secure Mr.Windsor's support for it to govern.

Senator Williams said the Murrurundi Rail Tunnel was one of a number of commitments given to Mr. Windsor, but it now appears the Government had not done its homework.

"The mining companies are saying the $1 billion cost for the tunnel is not justified considering the coal tonnages that will be extracted from the Gunnedah Basin.

Labor should have checked this out before promising its construction in return for a vote.

We will wait to see how many other deals are dismantled by the Gillard Government", Senator Williams said.