Allan vows to power ahead with Suburban Rail Loop despite no new funds in federal budget

Jacinta Allan says she’s not worried about how the Suburban Rail Loop will be funded and won’t scrap the project even if Peter Dutton becomes the next prime minister and decides against stumping up cash.

• Opinion: No new money for SRL but mega project not dead

Jacinta Allan insists she will power ahead with the Suburban Rail Loop regardless of whether Peter Dutton becomes prime minister and decides to rip funding for the controversial mega project.

The Premier’s pledge also comes despite Tuesday night’s federal budget not including any new money for the first stage of the project, which would connect Cheltenham to Box Hill with 26km of track as the first stage of a 90km rail loop.

The Allan government is banking on the Commonwealth stumping up one third of the initial $34.5bn price tag, but Prime Minister Anthony Albanese has so far only committed to just $2.2bn.

Premier Jacinta Allan says she’s not worried about how the SRL will be funded. Picture: ndrew Henshaw

The Premier has refused to outline how the state government plans to cover the federal contribution. Picture: Suburban Rail Loop Authority

Federal Treasurer Jim Chalmers on Wednesday conceded he hadn’t allocated any more money towards SRL.

“We haven’t made that commitment, we haven’t budgeted for that,” he told 3AW.

Earlier on ABC, Mr Chalmers said he believed in the project, despite failing to provide any additional funding. “We think it’s a project worthy of Commonwealth investment,” he said.

Responding to the federal budget on Wednesday, Ms Allan said she wasn’t worried about how the Suburban Rail Loop would be funded.

“We have the funding that we need for this project. We have tunnel boring machines starting next year,” she said.

“We will continue to work with the federal government and obviously there’s a federal election looming, so we will let that also take place.”

Ms Allan said she would proceed with building the rail loop regardless of whether the Coalition is elected to power, and Peter Dutton decides against stumping up cash.

“Well, well, yes. Because Victorians know we’ll stick to our word on this project,” she said.

“Firstly it’s a hypothetical ... It’s a reasonable hypothetical because Peter Dutton’s Liberals have dudded Victorians before ... I understand Victorians are fearful because these people have form.”

But the Premier refused to outline how the state government planned to cover the federal contribution —- about $11.5bn — if a future Commonwealth government decided to walk back its promise to fund a third of the $34.5bn price tag.

“Those questions about what Peter Dutton would do, should heaven forbid he become Prime Minister, those questions are for Peter Dutton,” she said.

Ms Allan said she will proceed with building the rail loop regardless of whether the Coalition is elected to power, and Peter Dutton decides against stumping up cash. Picture: Getty Images

It comes after a scathing assessment from Infrastructure Australia, released last week, found the $34.5bn SRL East is likely to soar above its mammoth price tag, and that benefits in the project business case were “overstated”.

Infrastructure Australia recommended the Victorian government develop “exit strategies” in case the risky project goes off the rails and needs to be abandoned.

The government has already signed multiple contracts for the project, which is already under construction and is scheduled to begin major tunnelling works next year.

Infrastructure Australia recommends the Victorian government develop ‘exit strategies’ in case the risky project goes off the rails and needs to be abandoned. Picture: Andrew Henshaw

Ms Allan also wouldn’t say whether she planned to sign Victoria up to more SRL contracts before Australians cast their vote in the upcoming federal election.

“I don’t have the procurement schedule in front of me. I’m not sure when some are due but let’s be clear, Victorians have voted for this project twice. It’s a project we want and need,” she said.

Ms Allan said she was pleased with the federal budget, calling it a “good budget”.

“It’s been a long time since we’ve stood up the day after the federal budget and talked about Victoria receiving funding for infrastructure projects, funding for our schools and hospitals (and) the things that our community wants governments to invest in,” she said.

Opposition Leader Brad Battin said the Premier owed Victorians an explanation as to how she would find the extra cash to fund her “pet project”.“We know there’s only two ways to get it — increase Victoria’s debt to limits that we cannot afford or start cutting services,” he said.