The Albanese government will commit $2.2bn to the Suburban Rail Loop and $330m for roads

The Albanese government has defended its decision to pledge $2.2 billion towards the Suburban Rail Loop, despite a report finding the project doesn’t stack up.

Prime Minister Anthony Albanese has defended his $2.2bn commitment to the Suburban Rail Loop, despite a looming state election and ongoing debate about whether it stacks up.

The state opposition has pledged to shelve the SRL and the Victorian Auditor-General’s Office last month warned the state’s business case to justify its spending was inadequate.

The office said there was a risk the benefits of the SRL were overstated and did not support a “fully informed investment decision”.

But Mr Albanese rushed from a press conference on Sunday after he was questioned on whether he would spend the $2.2bn on the opposition’s alternative projects, which include a new children’s hospital for the west, if it won next month’s election.

The Albanese Government is committing $2.2 billion for Daniel Andrews’s pet project, the Suburban Rail Loop. Picture: Luis Enrique Ascui

When asked if he would be open to talking to Opposition Leader Matthew Guy about repurposing the $2.2bn, Mr Albanese said: “No, (the $2.2bn) is a commitment for the SRL.”

“We make commitments to specific projects at specific times.”

Mr Albanese said he remains committed to the “exciting” SRL.

“We promised $2.2bn and we’ll deliver $2.2bn in our first budget,” he said.

“(The SRL) will transform the way people get around this city.”

Infrastructure Australia, tasked with weighing up the nation’s project priorities, is now assessing the loop and the policy has become a major election issue as the Andrews government remains committed to delivering it.

Speaking on the ABC on Sunday, federal Infrastructure Minister Catherine King said she was aware of these issues but backed the loop and the federal funding, which was an election commitment.

“It’s a project that we’re really committed to,” she said.

“We’ve put $2.2bn into that first early works stage.

“We’ve had conversations within the department itself and as you know Infrastructure Australia at the moment we’re undertaking a review of that.

“Certainly any forward funding for suburban rail we’ll be working with Infrastructure Australia on that.

“At this stage they haven’t undertaken a review of any of the business case.”

Ms King said Labor had relied on the Andrews government’s “substantial business case” for its federal election commitment and said they had confidence in the document.

“There’s been some challenges around that,” she said.

“But again this (money) is for the early works of this project.

“We haven’t made any further commitments, we’ll talk to the Victorians around that as we go forward.

“They’ve obviously got an election that they’re facing, this will be a contested project I’m sure but it’s something we have confidence in.”

Opposition transport infrastructure spokesman Matt Bach said Ms King’s comments had thrown doubt over the future of the SRL

“Given that both the Parliamentary Budget Office and the Auditor-General have thrown severe doubt over the business case currently being relied upon by Daniel Andrews, it is hard to see how Infrastructure Australia will possibly endorse the project,” he said.

“Without further Federal contributions, the Suburban Rail Loop has a massive black hole in its budget, meaning either more debt or higher taxes – or both – if the project is to proceed.”

Rail loop big winner in federal cash splash

Victoria will get $2.57 billion in the federal budget spending on infrastructure later this month, spearheaded by $2.2 billion for Daniel Andrews’ pet project, the Suburban Rail Loop.

The Albanese Government’s commitment to the railway, which was a promise at May’s federal election, comes despite a threat from the opposition to cancel it if it wins next month’s state election.

The budget will also include $330 million for roads including $150 million on the Camerons Lane Interchange at Beveridge and $125 million on an upgrade on the Barwon Heads Road.

Another $57 million will go towards the Ison Road overpass which will ease congestion in Wyndham West and Werribee and provide safer access to the Princes Freeway.

The Government has also taken the decision to remove a $4 billion “contingency” from the federal budget papers that is earmarked for the East West Link connecting the Eastern Freeway with CityLink, which was cancelled by the Andrews Government in 2014 at a cost of at least $1.1 billion.

Prime Minister of Australia Anthony Albanese said sound and planned infrastructure investment in Victoria creates jobs, builds opportunity and unlocks economic growth and productivity.

Mr Albanese says the rail loop is ‘about making journeys quicker, but also making sure Victorians can get home to their families safely’.

“It’s about making journeys quicker, but also making sure Victorians can get home to their families safely,” he said.

“Through our first Budget, my team is getting on with the job of delivering projects in consultation with Infrastructure Australia and all levels of Government to make a real difference to the lives of Australians.”

Infrastructure, Transport, Regional Development and Local Government Minister Catherine King said investing in the Suburban Rail Loop was “a once-in-a-generation opportunity” to reshape the way Victoria grows.

“Victoria is projected to grow to 11.2 million residents by 2056 and Greater Melbourne to reach around 9 million people – a similar size to London today,” she said.

“This visionary project is needed to keep Victoria moving in the face

of this expected growth.”

The decision to fund the Suburban Rail Loop while withdrawing the previous government’s commitment to East West Link will put the Commonwealth on collision course with Victoria if the Coalition takes office next month as the opposition has promised not to build the project.

Originally published as The Albanese government will commit $2.2bn to the Suburban Rail Loop and $330m for roads