Labor's federal poll loss shifts goalposts on big transport projects
No money has been assigned to plan the $13 billion airport rail link in the new financial year, the Andrews government's budget reveals.
Instead, it appears that the state government will be relying on the federal government’s contribution to fund the business case and further planning over the next four years.
Before last year’s election, the Andrews government promised to build a rail link to the airport and agreed to match the federal government’s $5 billion contribution.
But the budget reveals that $50 million from the Morrison government will be used for the project’s business case this financial year. No state money has been set aside for the project over the forward estimates.
However, state government officials have said the $5 billion for the project has been factored into the state’s net debt.
The Andrews government has been forced to do away with big-ticket funding injections from the federal Labor Party following this month’s shock election result.
Outgoing Labor leader Bill Shorten had promised $2 billion for the Metro Tunnel if the ALP won the election, which Premier Daniel Andrews had planned to splash on other transport project.
Mr Shorten had also pledged a whopping $10 billion for the suburban rail loop but it appears that Labor’s unexpected loss has thrown a last-minute spanner in those works.
Just $50 million will now be spent on planning the $50 billion, 90-kilometre orbital rail line over the next two years.
This is one fifth of the $250 million the Andrews government will spend on planning the rail loop.
The Morrison government made an election promise of $2 billion to build fast rail to Geelong and is asking the state to match it but the Andrews government is pushing ahead with its alternative western rail plan.
This will see it spend $100 million on planning the electrification of the Melton and Wyndham Vale lines and separating them from regional tracks.
This year’s budget does reveal however, that suburban and regional rail commuters will see some significant gains.
Sunbury commuters will benefit from a $2.1 billion upgrade to get the track ready for high-capacity trains set to run through the Metro Tunnel by late 2025.
The government has also stuck to its election promises to spend $6.6 billion to remove an extra 25 level crossings and fix bottlenecks on two key suburban train lines.
It will spend $750 million to duplicate eight kilometres of the Cranbourne line and $547 million to double 4.5 kilometres of track on the Hurstbridge line.
But just a fraction of this funding has been set aside for planning these projects over the next four years.
The government has also set aside $340 million for 18 new VLocity trains and $150 million for commuter car parks, as promised.
More than $150 million will be spent on 10 new E-Class tram but last year’s funding for ‘‘next generation trams’’ appears to have slipped off the budget papers this year.
The budget further highlights that in the sphere of roads, nearly half of the $6.7 billion for the West Gate Tunnel has already been spent, despite major construction of the road not yet starting.
The government also states that it has fully funded the $15.8 billion North East Link, but would not break down the funding of the road for commercial reasons.