Labor flips on promise to reveal estimated cost of Suburban Rail Loop before election
The Suburban Rail Loop will be costed by the federal Parliamentary Budget Office after Dan Andrews refused to give an estimate for the project.
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The controversial Suburban Rail Loop will be costed by the federal Parliamentary Budget Office amid opposition concerns about Labor’s $2.2bn commitment for the project.
Deakin MP Michael Sukkar and opposition infrastructure spokeswoman Bridget McKenzie requested the forecast costing on Wednesday night.
The move comes after Daniel Andrews refused to provide an estimated total for the project, despite pledging in August to provide the full costings before Victorians head to the polls on Saturday.
“With Commonwealth contributions of $2.2bn, we need to know what this project is going to cost,” Mr Sukkar said.
“We can’t saddle future generations of Victorians with a mountain of debt for a white elephant project such as this, they deserve to know what it will cost.”
Mr Sukkar accused the Albanese government of turning their back on its commitment to only fund projects assessed by Infrastructure Australia.
“At the last state election Labor said this project would cost up to $50bn, now we’re told it will cost $125bn with many experts now estimating it will blow out to $200bn,” Mr Sukkar said.
The Herald Sun last month revealed almost $1bn worth of Victorian infrastructure projects had been cancelled in the federal budget, with Labor claiming the projects were over budget and underfunded.
Mr Sukkar claimed the government was “funnelling this funding” into the Premier’s pet project.
“Australians deserve to know how much this project is going to cost, particularly those impacted by the cancelled infrastructure projects that were desperately needed in Victoria,” Mr Sukkar said.
Federal opposition infrastructure spokeswoman Bridget McKenzie said it was “dangerous for a federal government to partner with such reckless behaviour from a state government”.
“My concern now is the risk Labor has signed itself and future federal governments up to,” she said.
“This project commitment puts all Victorian, indeed all Australian taxpayers on the hook to pay for an uncosted and unviable Dan Andrews election promise.”
Infrastructure Minister Catherine King on Tuesday defended the Suburban Rail Loop project to the federal parliament.
“This is a once-in-a generation infrastructure investment in Victoria,” Ms King said.
“The detailed business and investment case for the Suburban Rail Loop, released by Victoria last year, demonstrated a benefit-cost ratio of 1.7, meaning that $1.70 would be returned for
every dollar invested.
“Under the National Land Transport Act, the project is also subject to rigorous assessment processes between the Commonwealth and Victoria.
“That is what is required when we have those national partnership agreements.”
Top economist slams Surburban Rail Loop as ‘disaster’
A former federal Treasury economist has dubbed the SRL the “worst infrastructure project of all time”.
Macroeconomics advisory managing director Stephen Anthony said there was “no question” the project is the worst fiscal policy in Australia.
“Oh, there’s no question,” the Melbourne-based economist told 3AW.
“It is the worst infrastructure project of all time. It is a disgrace.”
Mr Anthony has served as an economist in both the federal treasury and department of finance.
He is also a former chief economist for Industry Super Australia which represents major not-for-profit funds which are backed by unions.
Mr Andrews pledged in August to provide the full costings for the controversial SRL before November 26.
But on Wednesday, the Premier dodged 24 questions about whether the first two stages of the SRL would incur blowouts, instead repeating that the project had been “appropriately costed”.
“They’ve been appropriately costed, fully funded, and we’re getting them built,” he said.
Questioned as to why Victorians should trust that there will not be cost blow outs, Mr Andrews said the project was being controlled by the same experts who have worked on other big builds such as the Metro Tunnel.
“We’ve also got those same engineers, who have done the costings and all the hard work on suburban rail, Metro Tunnel and so many other projects,” Mr Andrews said.
With the May budget indicating that several of these project costs had blown out, Mr Andrews said they were “complex projects”.
The Premier said cost estimates should be left to future governments.
“It will for other governments to make choices,” he said.
“But if you don’t build stage one and two now, you’re just leaving that to someone else.”
Continuing to refuse to guarantee there would not be cost blowouts, Mr Andrews instead decided to blast the Liberals plan to build a green space over the Flinders St rail yard.
“The Liberal Party want to cancel that project, a critically important rail project in the suburbs, to build a deck over the rail yards at Federation Square,” he said.
“That’s not a choice for us.”
Prior to the 2018 election the government had said the entire project would cost “potentially up to $50bn”.
But three months ago an independent estimate from the Parliamentary Budget Office predicted the first two stages would balloon out to $125bn, making it the most expensive infrastructure project in Australian history.
Mr Andrews disputed the PBO’s figures and guaranteed he would give Labor’s estimate of the cost before the election.
Guy refuses to rule out building SRL
On Wednesday, Matthew Guy refused to fully rule out building the SRL one day, but admitted it’s unlikely he would carry on with any works within the next term of government.
The Opposition Leader maintained he had been clear and consistent with Victorians about his plans for the project.
“I’ve been as upfront as I can to Victorians,” he said.
“I’ve made it pretty clear that it’s not a priority to start that project when we’ve got a health system fix.
“If early works have been done, then at one stage in the future, someone — if the financial position gets better — may choose to do that
“I’m not going to commit to doing that because I can’t given the state of our finances.”
Mr Guy was asked about the likelihood of any work on the project commencing under his government within the next four years, if he was successful on Saturday.
The opposition initially pledged to scrap the project, before later clarifying it was their plan to shelve it.
“I think that’s unlikely in the next term of government because I think our financial position will allow it,” he said.
Mr Guy defended questions about whether it was fair to spend $2bn of taxpayer money to carry out early works without confirming when — and if — the project will ever be committed to.
“That project will then go through the proper processes of analysis and to see where it does or doesn’t stack up,” he said.
“I’m just not going to promise something I can’t afford to do. It’s not fair to Victorians to do that, and I won’t be doing it.”
Andrews’ spectacular Suburban Rail Loop flip
On Tuesday morning, when asked by the Herald Sun if the numbers would be available, Mr Andrews again committed to providing them.
But hours later, Transport Infrastructure Minister Jacinta Allan said there was “more work to do” costing the second section, from Box Hill to Melbourne Airport.
She said the first section, from Chelthenham to Box Hill, would cost between $30bn and $34.5bn.
Opposition transport infrastructure spokesman Matt Bach said the Premier had backflipped on his promise to reveal the Loop’s total cost.
“This is at a time when Victoria already has more debt, the New South Wales Queensland and Tasmania combined, when Victorians all know we have other, pressing priorities,” he said.
“Many experts actually say the costings of the parliamentary budget office are in fact very conservative.”
The SRL has become one of the biggest election issues, with Opposition Leader Matthew Guy promising to scrap the first stage of the SRL and use the $35bn to fix the state’s health crisis.
Labor has attacked the Coalition’s promise as misleading and inaccurate as some of the money would come from the federal government.
The government’s business and investment case for the SRL, used to justify its spending, estimated the first two legs of the project could cost up to $57bn, but they have refused to say this publicly.
Asked on Tuesday if Victorians had the right to know the estimated total cost given the project would likely affect budget decisions for decades, Mr Andrews said: “I’m happy to come back to you ... I’m happy, if we’ve not provided you something that I committed to give you, I’m more than happy to follow it up for you.”
Detailing the importance of the project, he added: “We’re going to have the biggest city in our nation quite soon, and if you cancel the SRL, you will cancel the suburbs as we know them because our suburbs will simply be choked by traffic.”
Mr Andrews said both the eastern section of the project – a rail line from Cheltenham and Box Hill – and the airport rail section had already been funded in budget papers.
But he said it was up to future governments to cost the project’s second and third stages, which include a rail line from Doncaster to Broadmeadows, and eventually, from Werribee to Sunshine.
“As I’ve said to you, airport – in the budget. Box Hill to Cheltenham – in the budget. Subsequent stages will be a matter for future governments, as well as a future tender process, as well as all the other variables that come with projects that take a long time to build,” he said.
“We’ve always been clear – we will start that project, in fact we have started that project. We will not be around when it’s finished.”
Pressed if Victorians had a right to know the projected estimates before voting, Mr Andrews again referred to the budget.
“The budget’s a law that passes the parliament. The budget is the most formal and important annual statement of our priorities, our expenditure, our revenue,” he said.
“Budget papers, the business and investment case, many other comments that we’ve made, as well as the votes of Victorians back in 2018, indicate this project is critically important.”
Responding to further questions, Ms Allan insisted the government had been clear on the SRL’s costs.
“SRL East will cost $30b-$34.5bn, which is reflected in our budget papers and our detailed business and investment case,” Ms Allan said.
“There is more work to do to cost the northern section of the project – we’ve done very detailed design and development work for SRL East, we have precise station locations and have done thousands of geotechnical and survey tests – and we have to do the same level of work to cost SRL North.”
Opposition transport infrastructure spokesman Matt Bach said Labor needed to be upfront with Victorian voters.
“Today, Daniel Andrews and Jacinta Allan must answer one simple question,” he said.
“How much will the Suburban Rail Loop cost?”
It comes as eastern suburbs residents are worried the project will radically increase housing density at the expense of community amenity.
The Surrey Hills and Mont Albert Progress Assocation claims the SRL Authority will have unfettered planning and land development control around Loop stations.
The group’s recent meeting had more than 100 participants and heard from urban planning experts about the state government’s plan for high-density housing to deal with rapid population growth.
Association president Greg Buchanan said residents and businesses were very concerned about the government taking planning control away from local councils over vast suburban precincts to fast- track medium-rise and high-rise development.
Mr Buchanan said the association had had a bad experience dealing with the government over the Surrey Hills and Mont Albert level crossing removal project, which will see the construction of one station to replace two.
“If experience with that project is any guide, the government cannot be relied upon to offer respectful and transparent engagement with the public on planning for these large SRL precincts,” he said.
“Trust is too often broken by tricky and secretive consultation processes.” Suburban Rail Loop Authority CEO Frankie Carroll said: “We will work closely with communities and councils to achieve the best outcomes from the opportunities that will arise from the new train line”.
Labor pledges $51m for pharmacists
Daniel Andrews has announced a $51m package to expand the role of pharmacists and attract junior doctors to general practice.
The first part of the package will deliver $19m to funding a 12-month pilot program to expand the role of community pharmacists.
“We know that finding a bulk billing doctor after hours has never been as hard as it is now,” Mr Andrews said.
Mary-Anne Thomas said the move would be welcomed by women across the state who will be able to benefit from immediate access to antibiotics for UTIs.
“So many Victorians already have very well established relationships with their community pharmacists,” she said.
“We are going to work with our pharmacists to enable them to prescribe antibiotics for simple UTIs, that we are going to enable our pharmacists to issue repeat prescriptions.”
Local pharmacist, Anthony Tassone, said it was currently quicker to fly to Brisbane and get care for UTIs.
“It could be quicker hopping on a plane and going to Brisbane to get treatment from a pharmacy in Brisbane for a urinary tract infection rather than being able to get a GP appointment,” he said.
“That’s not acceptable for women.”
The Premier also committed $32m to “bridge the gap” between the salaries of GPs and specialists, which he said is an “active disincentive” to medical students becoming GPs.
“We want to make sure more and more of our doctors are choosing general practice,” he said.
The funding will give first-year GP trainees a $30,000 top up to their pay and will cover first year exam fees of $10,000.
Victoria’s peak body for public hospitals welcomed the trial, with Victorian Healthcare Association deputy chief executive Juan Paolo Legaspi saying hospitals were “truly under the pump”.
“So we welcome all policies designed to reduce demand for emergency departments and free up GPs,” he said.
“We need to find new ways to deliver timely healthcare to Victorians with the resources and health professionals we have.
“The VHA looks forward to seeing if trials of new models of care are safe and effective, and we will continue to call for policies that seek to prevent illness in the first place.”
Libs to fast-track public transport pledge
The Victorian opposition will fast-track its $2 public transport pledge by six months if Matthew Guy becomes Premier on Saturday.
The Opposition Leader announced that Melburnians would be able to ride on Melbourne’s public transport network for a discounted rate from January 1 next year.
“It’s an exciting announcement because it means that for the Australian Open, for the summer holidays, returning back to school — flat fare public transport across built up areas will apply,” Mr Guy said.
“For the five million Melburnians it’s a huge incentive to get back around the city.
“It’s a great initiative. It’s a great announcement. I’m very, very proud of it.”
Under the plan, a single flat fare will be introduced, reducing daily zone one and two fares from $9.20 to a capped daily cost of $2.
Concessions prices will also be limited to just $1.
The initial policy, which will cost nearly $1.3bn over four years, is estimated to save families that use public transport about $3500 annually.
The fast-tracked plan, announced on Wednesday, will also apply to the promise to halve regional V-Line fares.
“We won’t have any Victorians not having access to those cheaper transport fares,” Mr Guy added.
The opposition expects it will cost an extra $140m to roll out the policy six months earlier.
The cheaper fares will now be on offer for a total of four and a half years.
Mr Guy said the Coalition’s full election costings would be revealed on Thursday, promising that debt will be “significantly lower” under his government.
He refused to provide the total cost on Wednesday, despite more and more Victorians deciding to cast their vote early.
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