Suburban Rail Loop to become major federal election issue as Dutton calls for it to be scrapped

Peter Dutton will make the Suburban Rail Loop a central issue at the upcoming federal election, calling for it to be ditched and the $2.2bn in promised federal funds redirected to the state’s crumbling roads.

The Suburban Rail Loop should be scrapped and the $2.2bn Anthony Albanese has promised for it spent instead on fixing the state’s crumbling country roads, according to the federal Coalition.

The call, which will make the controversial rail project a central issue in Victoria at the coming federal election, also puts the federal and state oppositions at odds over its future.

On Monday, senior Victorian Liberal frontbencher Dan Tehan will launch a petition in federal parliament calling on the Albanese government to “abandon support for the Suburban Rail Loop and invest the $2.2bn of funding allocated to the SRL in Victorian country roads”.

He told the Herald Sun the project was unaffordable and should be dumped as it was reckless and a waste of taxpayer money.

His position that the SRL should be scrapped is at odds with the state opposition under John Pesutto, which has pledged to “pause and review” the project.

The Coalition wants $2.2bn in promised federal funds to instead go to fixing crumbling roads. Supplied

The SRL is now set to become a key issue for Victoria in the looming federal election. Picture: Supplied

Mr Pesutto has repeatedly insisted he won’t rip up any existing contracts if elected to government in 2026.

At the end of last year Mr Pesutto’s shadow cabinet rejected a policy of scrapping the project entirely.

In the lead up to the 2022 election the opposition, under former leader Matthew Guy, vowed to pause the project if elected. No contracts had been signed at that point.

On Monday, Mr Pesutto said he was “absolutely” on the same page as Mr Dutton, insisting he wanted to see the Suburban Rail Loop killed.

“In principle, we share the same view that the money that will otherwise go to the Suburban Rail Loop should be going to fund other vital projects around Victoria,” he said.

“We have a state that is heaving under the burdens of neglect by the Allan Labor government.”

John Pesutto says he wants to scrap the SRL but needs to see what’s in the contracts first. Picture: David Crosling

Mr Pesutto said his plan, if elected to government, would be to pause the project and analyse the contracts that have been signed by Ms Allan.

“We want to scrap the project but we need to see what’s in the contracts first,” he said.

“We don’t know what Premier Jacinta Allan has signed the state up to.”

Mr Albanese promised the commonwealth would give Victoria $2.2bn towards the $34.5bn, but 2½ years after taking office no money has been handed over because the Allan government had, until last month, failed to give its federal counterparts the information about the project they had been demanding.

A recent Australian National Audit Office report revealed the failure to hand over a project proposal report to be assessed has meant the promised $2.2bn, which was meant to flow this financial year, has been “rephased” to start flowing in 2025-26.

This will be well after the next federal election.

The Allan government’s failure to get its hand on this money during this federal parliamentary term means the state is likely to get nothing from Canberra if Peter Dutton wins next year.

Federal Opposition leader Peter Dutton. Picture: Linda Higginson

Premier Jacinta Allan is pushing ahead with the SRL. Picture: Aaron Francis

Mr Tehan’s petition claims “the deterioration of country roads due to the reduction in funding for maintenance has created millions of potholes leading to accidents and serious damage to vehicles”, and the Albanese government “has been cutting and delaying road projects since it was elected”.

It also says the Victorian government has drastically reduced funding for maintenance of the state road network, the condition of which “has led to an increase in serious accidents and an increase in fatal accidents”.

It calls on the Albanese government to dump support for the SRL and invest the $2.2bn in Victorian country roads.

Mr Tehan said Victoria did not have the money for the project, which the state Parliamentary Budget Office has said would cost $216.7bn when the whole thing is finished.

“This could double Victoria’s state debt, which is already unaffordable,” he said.

“There is no proper business case that has been undertaken and the concentration on investment in the Big Build in Melbourne is killing road investment in country Victoria.”

The Coalition says Victoria’s country roads have deteriorated. Picture: Jake Nowakowski

Premier Jacinta Allan has fired back at the federal opposition’s renewed push to scrap the controversial Suburban Rail Loop, accusing Peter Dutton of being “totally hostile” towards Victorian infrastructure projects.

“Peter Dutton is sending a very, very clear message to all Victorians that he’s going to be just the same as Tony Abbott, Malcolm Turnbull, Scott Morrison when it comes to gutting Victorians of the federal infrastructure funding they deserve and need,” she told reporters on Monday.

“The Liberal Party have form when it comes to not listening to the Victorian community.”

Ms Allan denied the government’s spending habits are reckless.

“That is just nonsense. That is just typical Liberal nonsense to conceal the fact that they’re totally hostile to funding the infrastructure that the Victorian community wants and needs,” she said.

“Dan Tehan has done the Victorian community a favour today. He’s made it absolutely clear that a federal Liberal government doesn’t stand for Victoria.

“I remind Peter Dutton and Dan Tehan that Australian taxpayers can be found here in Victoria too, and we deserve our fair share.”

Ms Allan wouldn’t explicitly say whether she had confidence that Victoria would receive more funding towards the project if the federal Labor government is re-elected to power next year.

Originally published as Suburban Rail Loop to become major federal election issue as Dutton calls for it to be scrapped