Albanese government releases Suburban Rail Loop funding that was promised at last election

Victorian Premier Jacinta Allan has failed to answer a string of questions about the mammoth Suburban Rail Loop project, instead declaring “I’m done” and calling time on a tense presser.

Premier Jacinta Allan has failed to answer a string of questions about when the first house will be built as part of the controversial Suburban Rail Loop project.

During a heated 40-minute press conference on Thursday, Ms Allan was also unable to say when value capture would begin to fund the first phase of the $34.5bn train loop from Cheltenham to Box Hill.

Ms Allan, who was asked almost 20 questions about the Suburban Rail Loop, walked off when a reporter attempted to again ask about the project.

“No, I’m done on the SRL. No, we’re done,” she said.

Jacinta Allan declined to answer repeated questions about the SRL on Thursday. Picture: 7News

In the end the Allan said “I’m done” and left the press conference. Picture: 7News

On Wednesday night, the Albanese government announced it had released the $2.2bn in funding it promised at the last federal election – but with strings attached.

Federal Infrastructure Minister Catherine King said that money was released on the basis it was spent on “very specific things”.

Ms Allan on Thursday said the Commonwealth’s contribution would go towards early works, including costs associated with ground testing, utilities and land acquisition.

The state government, which has so far set aside $11.5bn towards the first stage known as SRL East, is banking on the Commonwealth to match that commitment.

It is relying on so-called value capture to stump up the third portion of funding.

Ms Allan was unable to say when that cash would begin flowing into state coffers.

But she hinted that the government could ask organisations based along the train line — such as Monash University and Deakin University — to also stump up money towards the project.

“We’re having conversations with stakeholders,” she said.

“We already know that a whole range of organisations are already making business investment decisions … because they know that not only is there going to be a train line that’s going to connect them to their precinct, there is also the planning that’s going on around that train station.”

The Albanese government has released $2.2bn in funding it promised for the rail loop.

Advisory body Infrastructure Australia and the federal infrastructure department assessed the project.

In recent months, the Allan government has rebranded the Suburban Rail Loop as “Australia’s biggest housing project”.

Ms Allan denied suggestions that could have been an acknowledgment that the public viewed the SRL as an unpopular transport project.

“We were always clear when we announced the Suburban Rail Loop that we weren’t just building a train line,” she said.

But she repeatedly shirked questions about when the first homes around the project would actually be built.

“We’ve got to build more homes everywhere,” she said.

On Wednesday night, Infrastructure Minister Catherine King said advisory body Infrastructure Australia and the federal infrastructure department had assessed the project so money could flow to Victoria.

But strict conditions have been placed on what the money can be spent on.

“Infrastructure Australia and my department have now assessed that and recommended that that money be released to the Victorian government on the basis of very specific things that it will be going towards,” she said.

“And so I have now signed that off and the Victorian government, I’m sure, will be receiving the news of that now.

“That’s the existing money that we’ve had on the table for Suburban Rail East.”

Works underway on the Suburban Rail Loop site at Heatherton. Picture: Mark Stewart

It’s unclear when the first house will be built as part of the Suburban Rail Loop project. Picture: Mark Stewart

But Ms King’s office could not provide details about what the money would be going towards.

Infrastructure Australia is still working with the state government on its project evaluation report, which is expected to be finalised soon.

A spokesperson said: “Infrastructure Australia has provided its advice to the Australian government on the Victorian government’s Suburban Rail Loop East project”.

Ms King said further funding for the contentious $34.5bn project, which would connect Cheltenham to Box Hill via a 26km tunnel, was still being considered.

The Allan government wants a total of $11.5bn from the Commonwealth for the rail link, which it says will trigger development around stations that would deliver 70,000 new homes.

It has booked in $11.5bn in state cash for the project, while the remaining third is supposed to be raised through development levies or land uplift taxes called “value capture”.

“There are still some hurdles that the Victorian government will need to overcome in relation to advice that I will receive from Infrastructure Australia about particularly the costings around value capture before the Commonwealth can make another decision,” Ms King said.

Catherine King says there are some hurdles that the Victorian government will need to overcome. Picture: Roy VanDerVegt

Labor has been split by the SRL project, which is soaking up a huge proportion of infrastructure funding for a rail line in Melbourne’s southeastern suburbs.

But Ms King said she thought the SRL was a “really good project”.

“I’m a supporter of it, but I also need to make sure that I’m getting value for money for Australian taxpayers,” she said.

Suburban Rail Loop Minister Harriet Shing said “Australia’s largest housing project, our Suburban Rail Loop, has just received $2.2bn in good news from the Albanese government”.

“This means more homes and more opportunities, closer to where people want to live.”

But on Thursday the opposition dubbed the SRL the “abandoned rail loop”, a “failed tunnelling project” and the Premier’s “eastern suburbs rail line”.

Opposition major projects spokesman Evan Mullholland called on Ms Allan to “come clean” on where the rest of the funding was going to come from.

“Jacinta Allan’s Suburban Rail Loop is now the abandoned rail loop, with the federal government only committing the promised $2.2bn for ... the $30bn to $35bn SRL East project,” he said.

“It’s meant to be a third by the federal government.

“The Premier needs to answer why she is continuing with her eastern suburbs rail loop.”

Senator Bridget McKenzie says Labor is ‘panic spending’ on infrastructure after the Werribee by-election. Picture: Martin Ollman

State opposition major projects spokesman, Evan Mulholland, said: “Jacinta Allan tried to hold Canberra hostage for more than the $2.2bn already promised and has now been shamed with the news they won’t be committing the full third of her SRL East project”.

“It’s quite clear this project must now be paused, our credit rating agencies have warned of a ratings downgrade without additional federal funding,” he said.

“Every dollar spent on SRL East is a dollar not being spent in the growth areas and regions of Victoria that are being starved of infrastructure.”

“If Jacinta Allan says she’s listening after the Werribee by-election, she’s certainly not showing any signs of it.”

Federal opposition infrastructure spokeswoman Bridget McKenzie accused Labor of “panic spending” on infrastructure in Victoria following the Werribee by-election.

“There has been a complete lack of transparency on the $2.2bn federal Labor is handing over to Jacinta Allan for the Suburban Rail Loop,” Senator McKenzie said.

“The Victorian government has not disclosed how the full project will be funded or how at least $11bn worth of taxes, charges and fees will be collected from property owners in the SRL corridor.

“Minister King needs to make clear what the quid pro quo is for the deal before she releases Commonwealth taxpayers’ money.”

Senator James Paterson claims the Victorian government is ‘hurtling towards insolvency’ if it proceeds with the project. Picture: Martin Ollman

Victorian Liberal Senator James Paterson called for the federal government to be transparent about the “hurdles” the Victorian government needed to overcome to get any further funding.

“It is very clear this is a patch-up job before the election to buy off Jacinta Allan and the Victorian government, to buy peace between the federal government and the Victorian government, which has been at war with each other behind the scenes over this issue,” Senator Paterson said.

“The Suburban Rail Loop is a cruel hoax on the people of Melbourne.

“The Victorian government has no capacity to pay for this and $2.2bn from the federal government is not even going to touch the sides of what is an absolutely mammoth project.”

Senator Paterson claimed the Victorian government was “hurtling towards insolvency” if they proceeded with the project, adding it would be “difficult” to recall the $2.2bn in federal funding that had been released.

“The sad reality is that those funds could have been used to improve roads, to improve rail, to make a real difference to Victorians suffering in congestion, whether it’s in the western or northern, or south eastern suburbs of Melbourne,” he said.

“But instead it’s going to go on a project that will probably never be completed.”

Some federal Labor MPs who support the project also want it paused, with the focus to be put on roads.

They are concerned Ms Allan’s recent doubling down on the project reinforces that the state government has the wrong priorities, which could negatively impact the Labor brand at the upcoming federal election.

Originally published as Albanese government releases Suburban Rail Loop funding that was promised at last election