Covid economic recovery cash diverted to bankroll more Melbourne bike lanes
A post-Covid recovery fund designed to get people back to the CBD is being used for a bike lane rollout, while in a separate development Lord Mayor Nick Reece has caved to pressure from the cycling lobby at a council meeting.
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The City of Melbourne is still raiding a Covid-era economic recovery fund to bankroll its bike lane rollout into next year.
The council’s annual budget for cycling infrastructure is set at $3.5m, including a $539,000 parcel from the Melbourne City Recovery Fund (MCRF).
The fund, announced by then premier Daniel Andrews almost five years ago, was a $100m pot – jointly funded by the state and Town Hall – to encourage people to return to the CBD over the 2020-21 summer.
Remnants from the fund are now being directed into the council’s 2025-26 cycling budget, amid claims the scheme was being used as a slush fund for the city’s capital works.
It comes as Lord Mayor Nick Reece on Monday night caved to pressure from the cycling lobby and tipped a separate $4.5m over the next three years into building new bike lanes.
Mr Reece had been facing pressure from the cycling lobby, with the lord mayor saying he’d heard them “loud and clear”.
On the issue of the recovery fund, it was previously reported $825,000 had been diverted for road projects, including creating speed limits in East Melbourne and North Melbourne.
Another $10m was pulled from the scheme for 40km of bike lanes, prompting criticism from Small Business Australia head Bill Lang over the fund’s intentions.
The recovery fund’s aim was to kickstart economic activity, provide Covid-safe dining and improve CBD streetscapes, including wider footpaths, bollards and planter boxes to promote outdoor dining.
But the money will now be spent on suburban bike lanes and other traffic infrastructure.
A 2km section of Queensberry St, Carlton, has been identified as a priority project.
The bike lane funding was queried by Greens councillor Olivia Ball at a recent council meeting.
“I thought MCRF ended in 2023,” Dr Ball said.
Council infrastructure manager Rick Kwasek confirmed the money was being used in the budget, although it was not listed as a separate line item.
“There are components of the MCRF funding which remain, which is the $539,000,” he said. “And that will support the cycling budget.”
A City of Melbourne spokesman said a key purpose of the recovery fund was to invest in new infrastructure.
“We’ve made it safer, more enjoyable and more convenient to walk, ride and visit the city,” the spokesman said.
“This includes the Exhibition St upgrades, where we’ve transformed the theatre district with wide bluestone footpaths, greenery and protected bike lanes.”
The council received 1466 submissions over its cycling infrastructure spending. More than $200,000 had also been pulled from footpath expenditure for cycle infrastructure.
Originally published as Covid economic recovery cash diverted to bankroll more Melbourne bike lanes
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