Council under fire over bike lane splurge

Melbourne City Council has been accused of using money from its $100 million Covid recovery fund to pay for controversial bike lanes.

Melbourne City Council has come under fire for using Covid recovery cash to build new bike lanes. Picture: David Crosling

Melbourne City Council is under fire for using money from a special $100 million city recovery fund to pay for a controversial bike lane upgrade in the CBD and inner suburbs.

The council spent millions of dollars on part of an existing project to fast-track 40km of protected bike lanes in places like Exhbitition and Queensbridge streets over the past year.

The cash came from the Melbourne City Recovery Fund — a joint council and state government initiative announced last September to help with the effects of pandemic shutdowns.

At the time the $100 million fund was spruiked as investing in programs and infrastructure to kickstart the economy through things like extending outdoor trading, activating vacant shopfronts, and increasing events and entertainment to attract people back to the city.

But events management worker Mat Klock, who crisscrosses the CBD regularly, said the bike lane expansion had increased traffic congestion by cutting vehicle lanes and parking spots.

“It’s not helping bring business back because it’s harder to commute around the city,” he said.

“It’s unfair for businesses who are looking for council and government support in this hard time to learn they are funding existing projects preferred by council.”

Of the $65 million spent from the fund so far, $10.1 million went on 15km of protected bike lanes and delivery of shared zones as part of the Little Streets program.

The council said that the bike lane plan was part of its Transport Strategy 2030, but was accelerated during the pandemic to improve safety across major cycling routes as riding became more popular.

More than $17 million of the fund was spent supporting businesses through grants, precinct support, outdoor dining and shopfront and streetscape improvements.

A further $20 million was used to support and deliver “unique events”.

It can also be revealed that a second fund, the $200 million Melbourne City Revitalisation Fund announced in May, has yet to spend a cent.

The council is still finalising a “full list of initiatives” with the co-sponsor the state government.

“We know that every day and every dollar is critical to so many city businesses, and the City of Melbourne has a vital role in providing confidence to our traders,” said Lord Mayor Sally Capp.

Prominent city restaurant owner Chris Lucas, said more transparency was needed around the funds.

“There needs to be better dialogue with the affected businesses of the CBD to ensure that the money is used appropriately and not on pet projects,” he said.