A parliamentary committee has recommended the NSW government ditch plans to build a controversial tunnel from the city to the Northern Beaches.
The upper house inquiry into the impact of Beaches Link and the $5 billion Western Harbour Tunnel delivered its findings on Monday.
In the case of former it found the government had failed to consider public transport as a viable alternative to motorways.
"The government has not provided a business case or benefit-cost ratio and the community is understandably sceptical of Beaches Link's value," Labor chair Daniel Mookhey said.
"The committee recommends the government not proceed with Beaches Link."
Concerns were also raised over Western Harbour Tunnel for which site preparations have already begun.
The projects aim to connect drivers directly from the Northern Beaches at Balgowlah to Rozelle in the inner west and would include tunnels under Sydney Harbour and Middle Harbour to the north.
The report noted an abandoned 'development partner model' resulted in substantial compensation payouts to three companies that bid to work on the Western Harbour Tunnel, capped at $1 million each.
Recommendations were made regarding transparency and impact on air and water quality, taking into account the considerable effect the tunnels would have on communities in the Inner West, Lower North Shore and Northern Beaches.
Metropolitan Roads Minister Natalie Ward called the report "political".
"This is a political report, led by Labor and the Greens who have opposed every infrastructure project delivered in NSW since 2011," Ms Ward said on Tuesday.
"The Western Harbour Tunnel is historic infrastructure for NSW, providing a third harbour crossing and slashing travel times from Sydney Olympic Park to North Sydney by 20 minutes."
The Public Works Committee, which delivered the report, is made up of members from across the political spectrum including Liberal, Labor, Greens and the Shooters, Fishers and Farmers Party.
Of 575 public submissions it received, the overwhelming majority were opposed to the projects.
"These are large projects, with large price tags and significant impact on communities they interact with," Mr Mookhey said.
"The committee makes various recommendations to improve transparency around the projects, noting the importance of properly informing the public ahead of the March 2023 election."
The government is due to deliver a response to the report before March 6.
