Federal Budget 2017: What it means for Victoria
VICTORIA will be offered billions of dollars in cash to put towards roads and rail if it agrees to sell its share of the iconic Snowy Mountains Scheme, while a Melbourne airport rail link could be on track at last.
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VICTORIA will be offered billions of dollars in cash to put towards roads and rail if it agrees to sell its share of the iconic Snowy Mountains Scheme.
Treasurer Scott Morrison has revealed the Commonwealth Government is prepared to acquire a larger share or undertake a complete buyout of Victoria and New South Wales government’s co-ownership rights.
Under the plan, all cash exchanged would have to be reinvested in priority infrastructure projects.
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Mr Morrison said any deal would not compromise water rights or affect irrigation communities who draw their water from within the system.
The Federal Government would also give a commitment that the project would not be privatised or onsold in the future.
Prime Minister Malcolm Turnbull discussed the offer with Victorian Premier Daniel Andrews over the phone on Tuesday afternoon.
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Government sources told the Herald Sun Mr Andrews was “receptive” to the offer.
New South Wales remains the biggest shareholder of the pioneering Snowy Hydro project with 53 per cent, while Victoria owns 29 per cent of the scheme.
The Turnbull Government restated its commitment to “Snowy 2.0” on Tuesday night — which includes a new hydro-electricity power station to generate an extra 2000 megawatts of renewable energy into the national grid.
Aside from billions of dollars spent on roads and rail, regional Victoria is also set to benefit from a $472 million growth fund to help communities adapt to the changes economy.
Cervical cancer screening in Victoria will also get a $42 million boost while a new suburb which could cater for 600 new homes will be unlocked just 10km north of the city by released a Defence site at Maribyrnong.
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Debt-ridden farmers, specifically in the struggling dairy sector, will also be given access to $4 billion in concessional loans through the creation of a Regional Investment Corporation.
The new body will also administer the government’s 42 billion National Water Infrastructure Loan Facility.
In welcome news for the Andrews Government, the state’s GST share will soar from $13.63 billion this year, to $14.77 billion next year, reflecting a growing population.
The state had complained it was being short-changed — but its share of the pool with rise from 91 cents to 93 cents in every dollar it contributes in tax coming back to Victoria.
In 2021 the GST take for Victoria is forecast to rise to $17.2 billion dollars.
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PM ‘RATTED ON DEAL’: PREMIER ANDREWS
THE Prime Minister has “ratted” on a deal with Victoria after the Commonwealth failed to provide $1.5 billion on regional rail, Premier Daniel Andrews said.
In a fiery press conference sure to escalate the war of words with Canberra, Mr Andrews said Malcolm Turnbull was nothing more than the “Prime Minister of Sydney.”
The Premier is seething after Victoria was not given the full agreed amount in last night’s Federal Budget under the asset recycling initiative after it sold the Port of Melbourne.
Adding to his ire, he said NSW got its full allocation under the scheme. He said parts of the $1.45 billion regional rail upgrade would have to be scrapped.
“He is, after last night’s budget, the Prime Minister of Sydney — nothing more, nothing less,” Mr Andrews said.
“He needs to explain why it is OK to rat on a deal with the people of Victoria and to rip off the people of Victoria but honour your commitments to the last cent with the people of NSW.”
In last night’s budget Victoria was allocated $1 billion in infrastructure spend — $500 million for regional rail and another $461 million not allocated to specific projects.
But Mr Andrews said it still left a massive shortfall and he would have to consider which of the regional rail project would be scrapped.
“Even if all that money could be invested in regional rail, $1 billion can’t be made into $1.45 billion of work.”
“We will have to go through each of the projects.”
Mr Andrews announced a $1.45 billion plan to upgrade regional rail in Gippsland, Ballarat, Bendigo and to start work to build a V/Line service to Torquay.
He said he would do the business case for the airport rail but said his preference was for the private sector to build the track.
Mr Andrews said he was happy to investigate a deal to sell Victoria’s 29 per cent share in the Snowy Hydro to the Commonwealth.
“But I have a few doubts about any new deal with Mr Turnbull given he ratted on the last one.”
Victorian Public Transport and Major Projects Minister Jacinta Allan also said the Federal Budget had short-changed Victorians.
“(The government) dudded Victoria royally and we are not getting the infrastructure or the funds we deserve,” Ms Allan told ABC Radio this morning.
She slammed the Commonwealth for not fully supporting the state government’s Regional Rail revival package.
And also discussed the eleventh hour offer, made to Victoria yesterday to sell its 29 per cent share in the Snowy Hydro project, saying the state government was open to the idea.
However, Ms Allan warned any deal would have to be met with scepticism after the federal government had refused to handover the full $1.45 billion owed from the Asset Recycling Initiative as a result of the Port of Melbourne sale.
MELBOURNE AIRPORT RAIL LINK MAY BE ON TRACK
MELBOURNE airport rail link could be on track at last after the federal government promised it would get a slice of a new $10 billion fund if it stacks up financially.
The long-awaited train line is one of six rail projects across Australia listed in Treasurer Scott Morrison’s second Budget as having “potential” to share in the massive fund.
The carrot dangled in front of the Andrews Government will put pressure on it to quickly develop a business case in order to cash in on the federal money.
The Budget also includes $500 million for regional rail lines, and almost half a billion dollars for yet-to-be-determined infrastructure projects from the state’s asset recycling money gained by leasing the Port of Melbourne.
The regional rail spend includes $100 million for a Geelong rail line duplication, $100 million for a northeast rail line upgrade, $195 million for eastern line duplication projects, and $95 million for the Avon River bridge in Gippsland.
Other spending includes:
AN $8.4 billion investment in the Melbourne-to-Brisbane inland rail project;
$30 MILLION to fund a business case for the Tullamarine rail link, and;
A $1.5 BILLION roads package promised late last year, including a $500 million Monash Freeway upgrade.
But Victoria’s infrastructure funding share, which has hovered at less than 10 per cent, remains woefully low.
Prime Minister Malcolm Turnbull told the Herald Sun the new spending was a “substantial Victorian infrastructure package that will drive investment, increase connectivity and lay the platform for future nation-building projects in this great state”.
He also trumpeted his support for an airport rail link.
“I strongly believe it is an omission that Melbourne does not have a rail line to the airport. This Budget takes steps to change that,” he said.
The Andrews Government has committed $10 million for a Tullamarine rail line business case, but is lukewarm about the project until the Melbourne Metro rail project is finished. But it is open to the private sector building the line.
The $1 billion in new spending on regional rail and other projects is $123 million more than first offered via the asset recycling fund.
It is still well short of the $1.45 billion to which the Andrews Government says Victoria is entitled.
The inland rail project would be funded by borrowed money given to the Australian Rail Track Corporation in equity. Most of the money would be spent north of Victoria, where new connections are needed.
There is also a promise to keep $3 billion for an East West Link if a future government wants to build it.
The Budget forecasts $75 billion will be spent on airport, road, and rail infrastructure over the next decade nationwide.
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