Gilmore's Liberal candidate Warren Mundine has announced the federal government would allocate $500 million to the Princes Highway if re-elected.
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The $500 million would be in addition to $960 the state government has committed.
Mr Mundine said the announcement followed discussions with the Prime Minister Scott Morrison's office.
"We're very pleased that in the budget there will be half a billion dollars - $500 million - to be allocated from the federal government to the Princes Highway," Mr Mundine said.
"That will be added to the $960 million the state government has put in. So that will be over the next few years a really good commitment to upgrade the highway.
"What we're going to do is continue our argument over the next few years so that we get the road fully completed and up to the standard that's been done on the Pacific Highway.
He said he would argue for 80 per cent of the employment in the construction of the highway to be for South Coast residents.
He said he wanted local businesses to benefit from the highway's construction.
"In Bomaderry there is a training centre that has been set up to help people transition into employment on the highway's construction, so we want that to happen south as well," he said.
"This is a reward for the people of the South Coast who have been campaigning, and for all the work they have done to make this happen."