Bus industry insider says the move reeks of a decision by a ’broke’ state government

Allan government bureaucrats issued a directive on buses that threatens 1350 jobs and poses safety risks to “kids, older people and the broader community”.

Planned upgrades of Victoria’s ageing bus fleet have been put on hold for up to five years in a move that could jeopardise the safety of schoolchildren as well as 1350 jobs.

On Christmas Eve, Allan government bureaucrats issued a shock directive to bus manufacturers and regional and school operators that from July 1 they were forbidden from ordering diesel-powered replacements for buses coming to the end of their lives.

Instead they would have to buy zero-emission bubses to replace vehicles that have spent 18 years on the road – without any new funding or sufficient charging infrastructure in place – or “extend the lifespan” of older buses by five years in country areas and three years in some metropolitan areas.

Industry sources say effectively cancelling scheduled orders was a death blow to the struggling sector and threatens 1100 jobs in Victoria – including at Dandenong-based Volgren Australia, which is the country’s largest bus body manufacturer – as well as another 250 around the nation.

Upgrades of Victoria’s ageing bus fleet have been put on hold.

They also warn new safety upgrades of school buses would be parked, including new seatbelt standards announced by Prime Minister Anthony Albanese this month off the back of a Hunter Valley crash in 2023 that killed 10 people.

One insider said the move reeked of a decision by a state that was “broke”, because if the state wanted to speed up the transition to zero-emissions buses it would provide funding for electric vehicles and charging infrastructure.

A spokesman for the Bus Industry Confederation said the extension of bus life and the deferral of new bus purchases for up to five years would have national implications.

“It places the viability of the bus industry, especially in Victoria, at serious risk, with up to 1100 jobs at stake in Victoria, and a further 250 nationally,” he said.

The 2023 Hunter Valley crash killed 10 people. Picture: David Swift

“It isn’t just about job losses though, it’s about supplier businesses closing altogether, relocating interstate or overseas. Once they go, they are gone for good. It’s up to $1.4bn over the next five years gone from the economy.”

Federal Liberal MP Dan Tehan said: “Anthony Albanese needs to pick up the phone to Jacinta Allan to stop this, otherwise his Future Made in Australia policy becomes a complete laughing stock.”

Victorian opposition transport spokesman Matthew Guy said the consequence of a government “that has clearly run out of money” could be significant.

“There will be risks to safety for kids, older people and the broader community that should never have had to be taken,” he said.

A report on the Allan government’s zero-emissions bus transition was released in November, describing it as “unlike anything the Victorian government has implemented”.

“Normally, a transition to new technology of this magnitude would occur far more gradually. But when it comes to emissions reductions, we know the need for urgency is clear,” the document says.

A government spokesman said road safety was a priority and buses would continue to undergo stringent testing, and if a bus went beyond its physical and economic life that would be dealt with case-by-case.

“We’re converting our entire public bus fleet to be quieter and more comfortable for passengers while at the same time slashing emissions,” he said.