NewsBite

The state is currently an economic wasteland becoming a desert

Victoria is broke. The Andrews-Allan governments have created this situation themselves; they can’t keep blaming Covid or lack of federal government support.

Kennett: By-election response will test Labor's vision

As a result of the by-elections last weekend, we are hearing and reading commentators contribute their suggestions for a change of government.

Tom Elliott on 3AW says address the crime rate, fix the potholes on our roads and stop the Suburban Rail Loop.

That might change the government, but it does not address the fundamental economic challenge facing the state.

We need to have the public understand why Victoria needs a massive economic reset.

Victoria is facing a fundamental economic challenge. Picture: Andrew Henshaw
Victoria is facing a fundamental economic challenge. Picture: Andrew Henshaw

Re the SRL, think it through!

The Allan government has signed contracts for the first stage of this white elephant from Box Hill to Cheltenham at a minimum cost of $35bn.

Stop it now and those with whom they have signed contracts will probably sue the government for breach of contract, in the same way that Daniel Andrews ripped up the contracts for the East West Link which he said would not cost Victorians a dollar.

In fact, it cost us over $1bn for absolutely nothing!

The same will occur for contracts not honoured for the SRL, although I am sure contracts have not been signed for the entire $35bn cost.

We should be told what commitments have been entered into.

Daniel Andrews’ decision to rip up the East West Link contracts cost us over $1bn. Picture: David Crosling
Daniel Andrews’ decision to rip up the East West Link contracts cost us over $1bn. Picture: David Crosling

So, you could stop work when the current contracts have been fulfilled.

Certainly, no new contracts should be signed.

The Albanese government has quite rightly refused to hand over the $2.2bn they have allocated in their budget to the Allan government for this project.

If they do so before the Federal election or commit more funds after the election, should they be returned to office, the majority of Victorians will be furious as more taxpayer’s money will be wasted.

Peter Dutton has correctly said should they win the election, no federal monies will be allocated to this project.

Future of Victoria’s Suburban Rail Loop on the brink of collapse

Remember the SRL was the brainchild of Daniel Andrews and his mates.

Jacinta Allan was the Minister for Infrastructure charged with delivering the project.

No business plan supported this project.

Andrews appointed one of his Labor mates who suggested the SRL, James MacKenzie, to chair the SRL Authority.

Andrews then appointed his former deputy James Merlino to replace MacKenzie as chair with MacKenzie remaining on the Board.

Former deputy premier James Merlino was appointed chair of the SRL Authority. Picture: Luis Enrique Ascui
Former deputy premier James Merlino was appointed chair of the SRL Authority. Picture: Luis Enrique Ascui

Merlino has absolutely no commercial experience of projects of this size.

And of course, the project was part or fully conceived to employ CFMEU members once the other major infrastructure projects were completed.

The whole project has been ill-conceived, with jobs for the boys being the main consideration.

The federal Labor government is quite correct in saying they will only allocate federal funds to those projects in Victoria for which there is a commercial rationale.

The SRL is the greatest abuse of political administration we will see in our lifetime.

Victorian Labor conceived this train to nowhere.

The SRL is the greatest abuse of political administration we will see in our lifetime.
The SRL is the greatest abuse of political administration we will see in our lifetime.

They should rightly determine how they are going to finance the completion of the first stage. If they can’t close it down.

They can’t rely on any federal government providing public monies for this sink hole.

They would do so at their political peril.

Premier Allan has said the government has listened to the results of the by-elections at the weekend and will do better.

If correct, stop borrowing money and employing people at huge salaries for the SRL.

Some within Labor are now suggesting, change the Premier!

Jacinta Allan facing internal pressure as support for Labor collapses at Vic by-election

Again, too late.

The state is fundamentally broke.

It survives only through borrowing more money.

The rating agencies are preparing to downgrade the state’s credit rating yet again.

The Andrews-Allan governments have created this situation themselves; they can’t keep blaming Covid or lack of federal government support.

They owe it to Victorians to do whatever is necessary over the next two years to stabilise Victoria’s debt.

Commentators are right in suggesting it is easy to win the next election, but that is simply not good enough.

We need a government with the capabilities and capacity to deal with what they will inherit. A good responsible government.

A strong but fair government.

The Coalition has the capacity to provide that leadership and government, but they have a great deal to do over the next 12 months to earn the right and prepare for what they might inherit.

They are not ready yet.

Greens, Teals and Independents will not provide the stability required.

The current government has the opportunity to prove they have listened and change priorities. It cannot be just about spending and borrowing more.

Victoria is currently an economic wasteland becoming a desert, which is now adversely affecting the social fabric of this once great state.

Labor has itself cooked this economic disaster, but unless they change priorities quickly, they will have cooked themselves as well as the state.

Fingers crossed.

Originally published as The state is currently an economic wasteland becoming a desert

Jeff Kennett
Jeff KennettContributor

Jeff Kennett was premier of Victoria from 1992 to 1999, served two stints as Hawthorn Football Club president and was the founding chairman of Beyond Blue.

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.dailytelegraph.com.au/news/opinion/the-state-is-currently-an-economic-wasteland-becoming-a-desert/news-story/3377665c431b7c1e26f7ce233c98e885