The Abbott Government has been strongly criticised for its refusal to fund public transport projects.

“I can't really understand the logic of saying we will only invest in a transport project if it involves bitumen as opposed to one that involves steel rails,” Jim Betts, the chief executive of Infrastructure NSW, told the Sydney Morning Herald.

But Mr Abbott appears to maintain that the federal government should not have to provide funding for public transport.

He says it is a state issue, and the Commonwealth should focus on funding motorways and rail freight.

Mr Betts calls this policy “arbitrary” and a “shame”.

“We've seen the successes that have come where in recent years when the Commonwealth government has reached into its fairly deep pockets to fund major projects like for instance the regional rail link public transport project in Melbourne which I was a big part of,” Mr Betts, a former chief executive of Public Transport Victoria, said at a recent industry function.

“I can't understand how public transport is somehow beyond the pale,” he said.

“It's a shame because particularly I would like to see bodies like Infrastructure Australia able to give modally agnostic advice.”

But there may be some favourable moves soon, given that despite Mr Abbott's opposition to federal public transport funding, part of the $2 billion asset sales payout NSW is seeking for privatising electricity assets could be spent on public transport projects.