Federal Budget: Victoria set to reap the benefits of infrastructure spending boom
With the state’s economy crippled by the coronavirus pandemic, more than $1 billion will be tipped into infrastructure projects in Victoria to kickstart economic recovery.
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Victorians will reap the benefits of more than $1 billion in new infrastructure spending with the cash injection tipped to kickstart economic activity.
Despite the $1.1 billion for 11 new road and rail projects, the funding was at odds with $1.3 billion in funding the state government had hoped to secure for a wish list of shovel ready projects.
Funding in Tuesday’s budget included $320 million for the Shepparton Rail Line upgrade and $292 million for an upgrade to Barwon Heads Road.
The Victorian government will also have access to a $2 billion fund set up for road safety upgrades across the country.
However they will be forced to move quick to tap into funding for shovel ready projects or risk missing out.
“If a state drags its feet, another state will get the money. We need works to start, not stall,” Josh Frydenberg said.
The money will be used to deliver projects like wire-rope barriers to prevent vehicles veering off the road and rumble stripsalerting drivers when they are moving out of their lane.
State and territories will be tasked with identifying projects like road widening, centre lines and barriers that can be deliveredquickly to produce a short term economic stimulus.
The Treasurer sparked a war of words with Daniel Andrews in the lead up to the budget, calling on the Premier to push on with major infrastructure projects, including the East West Link.
The federal government recommitted $4 billion to previously axed $7 billion road link project.
Another $5 billion in federal funding is waiting to be used when work begins on Melbourne’s Aiport Rail Link.
An announcement about the route and start date of the project is expected by the end of the year.
Another item on the Andrews Government’s wishlist that was not funded was a comittment to close out the $440 Murray Basin Rail Project, which has stopped short of its initial scoping after a funding blowout.
But the Federal Government wants to complete the scheme in full, leading to disagreement with Victoria about how any money for the project should be spent.
Victoria’s regions will be big winners from the extra federal cash, with major rail lines upgraded and duplicated.
A $605 million injection was brought forward to accelerate the South Geelong to Waurn Ponds rail upgrade, while $27 million has been earmarked for the Western Port Highway.
The federal government will also tip $178 million into regional rail revival projects and $71.5 million for targeted safety works.
It is expected up to 4000 jobs will be created in the infrastructure blitz.
“These and the many other projects we are funding will set Australia up for the future,” Mr Frydenberg said.
“We know that building more infrastructure now means more jobs now.”
Victorian councils will also share in an additional $1 billion for upgrades of local roads, footpaths and street lighting.
Victorian treasurer Tim Pallas said he welcomed the Commonwealth commitment to Victorian infrastructure.
“Driving economic recovery and growth is not only vital for business, workers and their families, it’s the surest way to reduce deficits and pay down debt,” he said.
Mr Pallas said Victoria’s upcoming budget would focus on pandemic recovery, job creation and support for Victorians and local businesses.
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