Victorians Liberals vow to dump $34.5bn Suburban Rail Loop if they win state election

Matthew Guy vowed to pump $34.5bn into Victoria’s healthcare system in an election promise to dump the suburban rail loop — but he’s been forced to concede one thing.

The state opposition won’t receive every cent of the Suburban Rail Loop East’s $34.5bn price tag, even if it successfully manages to scrap the mega project.

It comes after Opposition Leader Matthew Guy made an election promise to scrap the Suburban Rail Loop — the most expensive project in Victorian history — in a high-stakes gamble ahead of the election, and instead pump the savings into the state’s crippled health system.

The move will cement transport and health as key campaign issues and the election could become a referendum on the rail loop.

The Andrews government has so far set aside $11.8bn to the project, with $2.2bn being used for early works.

It is relying on the federal government – which has committed to provide about $2bn – to also match the $11bn figure.

The government hopes to achieve the remaining funds through a range of private sector investment and value capture sources.

Mr Guy on Thursday was forced to acknowledge that the amount of funds that would be redirected to the health sector would be significantly less than $34.5bn.

“Even if it was only $11bn to $15bn – that is building 15 new hospitals as big as the Melton Hospital. That would be 30 Geelong Women’s and Children’s hospitals,” he told 3AW.

“I can’t think of a better priority than that.

Matthew Guy has vowed to dump the controversial Suburban Rail Loop project. Picture: David Crosling

“You can’t get a train to the hospital. There’s no use having a train seat when you can’t get a hospital bed.”

Shadow Treasurer David Davis told reporters on Thursday: “We will take every cent that we possibly can out of the project.”

Mr Guy earlier slapped down the government’s suggestion that both infrastructure projects and the healthcare system could each receive adequate funding.

“They (Andrews’ government) are economically irresponsible to borrow tens and tens and tens of billions of dollars,” he said.

“We have the ability to do one of these projects – one of these two responsibly.

“Their figures are always rubbery. They always blow out. We always know this. Labor cannot manage a single project, let alone Jacinta Allan trying to manage a project on budget.”

Mr Guy said his first – and most immediate – priority, if elected to government, would be to focus solely on fixing the health sector.

“There is nothing more important than fixing Victoria’s broken health system,” he said.

“The Labor government’s priorities in this state – first of all, not acknowledging that we have a massive problem with our healthcare system, and secondly focusing billions of dollars … on a Box Hill to Cheltenham underground rail line – is not the priority we need now.

“I will reprioritise every cent available of the Box Hill to Cheltenham rail line and stick it all into fixing our healthcare system.

“This is Victoria’s priority.”

Mr Guy’s promises to use the money to address Victoria’s health crisis.

Transport Coalition slams ‘politicking’

Meanwhile, the Eastern Transport Coalition (ETC) — a group of seven councils advocating for sustainable transport options in Melbourne’s east — said the constant “politicking” behind major infrastructure projects needed to stop.

“It erodes the public’s faith in government, has real costs in terms of time and resources for stakeholders and jeopardises the design and delivery of a functional and effective transport systems that meets Melbourne’s burgeoning needs,” chair Stuart James said.

“The public interest is best served when major projects, like the SRL, sit above partisan politics.”

Cr James said the Suburban Rail Loop answered “many of the transport needs” outlined by communities along the route.

“We simply can’t keep relying on private motor vehicles and congested roads to service a population that is set to double in the next 30 years,” he added.

“There is no doubt our health system needs investment, as do so many other areas ... but none of this should be done simply by ripping away vital investment in public transport to serve generations to come.”

Labor hits back at Libs’ plan

Jacinta Allan said Mr Guy’s decision to scrap the Suburban Rail Loop reeked of a “desperate act from a desperate individual”.

Ms Allan, who is the minister responsible for the project, said the opposition leader had “walked away” from the suburbs.

She was on Wednesday flanked by a large group of suburban MPs who represent communities that would be impacted by the project’s closure.

“Victorians voted for this project that will create thousands of jobs – and today Matthew Guy has finally come clean,” she said.

“By cutting the Suburban Rail Loop, you are cutting thousands and thousands of jobs across the Victorian community.

“We are determined to get on with delivering the Suburban Rail Loop.

“This what we’ve seen today is a pretty stark message to the Victorian community.”

Ms Allan refused to say how much taxpayers would be slugged if the project was dumped now.

“That’s up to Matthew Guy to explain,” she said.

Transport Infrastructure Minister Jacinta Allan lashed the Liberals. Picture: Nicki Connolly

Health Minister Mary-Anne Thomas on Wednesday maintained the project was not coming at the cost of the state’s struggling health system.

“For our government, it’s not a choice of one or the other,” she said.

“A good government can deliver both good public transport that serves us well now and into the future, as well as a healthcare system that works for all Victorians.”

Ms Thomas also claimed the Liberal Party was more likely “go to war” with Victorian healthcare workers if elected.

“We know when the Liberals and Nationals were last in power, they cut funding to our public health system,” she said.

“They went to war with our hardworking healthcare workers.

“And there’s no reason not to expect that they won’t do the same again.”

Nationals leader Peter Walsh welcomed the announcement, explaining freed-up funds from the Suburban Rail Loop scrap would also help regional healthcare rebound.

“The regional Victorian health system is also broken,” he said.

“Twenty-five per cent of this money will actually go to regional Victoria’s healthcare system.

“We need new hospitals … we need the nurses, we need the doctors, we need the health professionals the same as Melbourne.

The project is slated to cost up to $34.5bn.

“This announcement will not only fix the health system in Melbourne, it will also fix the health system in regional Victoria.”

Infrastructure Partnerships Australia chief executive Adrian Dwyer said major infrastructure projects relied on “certainty”, warning that alarm bells should be sounding over the opposition’s pledge.

Mr Dwyer said Victoria had to work hard to “shed the baggage of ripping up the East West Link contract”, but warned this policy promise risked the state’s international reputation.

“We can’t afford to signal to global markets that every election will see the map redrawn,” he said.

“International bidders are lining up for major infrastructure bids in Australia at this very moment, it could be incredibly damaging to send a signal to board rooms in Madrid and Rome and Kuala Lumpur that the Victorian infrastructure pipeline is a moving feast.

“Cancelling the existing SRL contracts now will be double the cost of cancelling the East West Link and deliver exactly the same amount of infrastructure – zero.

“Matthew Guy was on the right side of history when he railed against the cancellation of the East West Link contract, this time he’s picked up the wrong play book.

“This is infrastructure policy in Dire Straits – it’s Money for Nothing.”

The group, which is the nation’s infrastructure think tank, said investments in health and infrastructure didn’t need to be mutually exclusive.

SRL a ‘long-term’ solution to population

Professor Graham Currie, an infrastructure and public transport academic at Monash University, said the SRL offered a “visionary” solution to the city’s future population squeeze.

“It is a very visionary project, looking at the very long-term,” Prof Currie said.

“However, the long term is a very big problem for Melbourne.

“A visionary project like that is the type of solution we need to address the significant long-term problems that we have in middle and outer Melbourne, where public transport is very poor and roads are getting increasingly congested.

“We’ve always had a history of not doing visionary things, in my opinion. We’ve held back.”

Prof Currie pointed to advanced train systems in London and Tokyo as proof an exorbitant rail loop could eventually lead to long-term benefit.

“Melbourne is going to be the size of London very soon. We’re talking, I think, 2050,” he said.

“The forecasts are that we will be the size of Tokyo in our future. Look at what Tokyo’s got and look at what London’s got — a lot more railways and quality public transport systems away from traffic, in tunnels and so forth, and we’re going to be that size soon.

“Are you willing to have a visionary view, or pragmatic view in the short term? It’s a question of your own personal choice.”

Green wedge residents, who appear set to lose long-promised parkland to SRL development, are pleased the Liberals are offering an alternative.

“We are very relieved to know that after the Liberals’ announcement, we have a choice at the next election,” said Residents Against Inappropriate Development spokeswoman Silvana Anthony.

“We hope that they commit to the original parkland plan for the site taken by Daniel Andrews for the SRL stabling yard, which would have destroyed our homes, quality of life and health.”

Matthew Guy’s plan revealed

Construction on the $34.5bn Cheltenham-Box Hill section of the huge project – which will ultimately provide 90km of orbital rail to Werribee – began in June and is due to be completed by 2035.

But Mr Guy is promising to instead use that cash to address Victoria’s health crisis in a splurge that would dwarf Daniel Andrews’ $12bn commitment to address the plagued system.

“This November, Victorians face a clear choice. A choice between immediately rebuilding Victoria’s broken health system, or a train line in 13 years’ time,” Mr Guy said. “As premier, my first priority will be to fix the health crisis.

“Our plan is about returning confidence for Victorians. Confidence that an ambulance will arrive, an emergency call will be answered and critical healthcare will be available when needed.

“Victoria needs a fresh start and only the Liberals and Nationals will fix the health crisis with no new taxes.”

The government has been plagued by hospital ramping, a fatally flawed triple-0 system and elective surgery waiting list blowouts.

Mr Guy said the government’s mismanagement of the system since 2014 was to blame.

Almost 90,000 Victorians were now waiting for critical surgery, he said, while fewer than two in three ambulance call-outs arrived within the target 15-minute time frame.

The majority of calls to triple-0 were not being answered on time and ambulance ramping at hospitals remained a critical issue, he said.

A map of the planned loop.

Mr Guy has vowed to build or upgrade 20 hospitals across the state and boost staff levels.

The bold new commitment includes previous pledges to:

• Build five new major hospitals in Melton, Mildura, West Gippsland, Wodonga and a dedicated new Infectious Diseases Response Centre

• Upgrade Rosebud, St Arnaud, and Sandringham hospitals

• Slash elective surgery waitlists within four years

• Provide free public transport for more than 260,000 healthcare workers

• Place mental health professionals in every Victorian school; and

• Offer rebates of up to $4500 for IVF and fertility treatment

Opposition Health spokeswoman Georgie Crozier said: “The Liberals and Nationals are putting forward real solutions and a clear choice to fix the health crisis.

“Victorians need a health system that works now, more than a train line from Cheltenham to Box Hill in 13 years’ time.

“Under Daniel Andrews, our health system has been mismanaged and neglected for years. Our state cannot continue down this path.”

Originally published as Victorians Liberals vow to dump $34.5bn Suburban Rail Loop if they win state election