Melbourne Airport accused of greed, protecting parking revenue in rail link stoush

Melbourne Airport is deliberately sinking the delayed airport rail link to protect its parking revenue, transport unions and a local mayor claim, and rank and file Labor Party members have urged the state government to “get serious” and finally deliver the project.

The Allan government expects the rail line will be delayed by four years, until at least 2033, because of a stalemate with the airport, which wants its station built underground.

An artist’s impression of a proposed elevated rail station at Melbourne Airport. The project remains in limbo.

Hundreds of Labor delegates at the party’s state conference on Sunday supported a motion condemning the “airport’s greed in protecting their parking revenue”. The motion also called on the government to “get serious about the development” and for “all parties to roll up their sleeves”.

Members also backed a motion that questioned the government’s justification for knocking down and rebuilding Melbourne’s 44 public housing towers, in a weekend of debate that became especially fiery over the war in Gaza.

Moonee Valley Mayor Pierce Tyson, addressing party faithful, claimed Melbourne Airport had a conflict of interest because it rakes in tens of millions of dollars in parking revenue. The Australian Competition and Consumer Commission put the figure at $160.9 million for 2022-23, which is down on pre-pandemic levels.

Moonee Valley Mayor Pierce Tyson.Credit: Simon Schluter

“It’s a clear conflict of interest. The airport doesn’t want this project to happen,” Tyson told party members at the Moonee Valley Racecourse on Sunday.

He wrote to the airport’s major shareholders – industry super fund-owned IFM Investors, Future Fund and the SAS Trustee Corporation – this month seeking to have them intervene to ensure the project was not indefinitely delayed or cancelled altogether.

“We are subsidising a corporation that’s working against our public interest,” Tyson told party members, referring to IFM.

Transport Workers Union state secretary Mem Suleyman said18,000 workers endured arduous commutes after long shifts at the airport without a rail link.

“If we want this government to have a legacy, a legacy of a government that did not build this project, then I say ‘shame’ to that,” Suleyman said. “You need to get on with it and get it done now.”

Rail, Tram and Bus Union secretary Vik Sharma said the train line “should have been built 60 years ago”.

A spokesman for Melbourne Airport said the airport remained supportive of a “future-proof” rail link, and pointed out it was part of a consortium that in 2019 offered up to $7 billion for an underground station and express tracks.

“The state government rejected this,” the spokesman said.

He said Melbourne Airport had in April and May offered to explore potential funding opportunities with the government.

“To date, the state has refused our requests for a meeting. We remain available to meet with the premier or the treasurer should they wish.”

The state and federal governments have both committed $5 billion to the project, which could cost as much as $13 billion. The Commonwealth appointed a mediator last month in an attempt to resolve the stalemate.

At the state conference on Sunday, speakers said airline workers and commuters did not care whether the station was above or underground.

“They just want a station that gives them the same option as every other airline worker at major airports in Australia,” the motion said.

Deputy Premier Ben Carroll, whose electorate of Niddrie would get a new train station at Airport West under the project, applauded throughout the speeches.

Treasurer Tim Pallas described the airport as a “really good car park operator” earlier this month.

On Saturday, pro-Palestine demonstrators crashed the conference and forced the Moonee Valley Racecourse into lockdown in a move Premier Jacinta Allan said disgusted her.

Hours later, hundreds of Labor Party members cheered when an overwhelming majority supported motions backing the Palestinian cause. A speaker for the motions received a standing ovation while two speakers against were heckled.

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