Federal Labor pledges $2.2bn for Andrews government’s Suburban Rail Loop
Anthony Albanese has detailed economic benefits from Victoria’s Suburban Rail Loop that differ from those of the state government as he pledged billions to the project.
Victoria
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The Suburban Rail Loop will deliver $1.70 in economic benefits for every $1 spent, Anthony Albanese has said, as he described it as Australia’s most exciting infrastructure project.
But the state government’s business case shows the cost-benefit ratio is between $1.10 and $1.70 for every $1 invested — and that includes the eastern and northern sections to be finished in 30 years.
Infrastructure Australia has also not released its assessment of the project, despite the Labor leader vowing he would rely on the advice of the independent body he established as a minister to guide federal Labor’s road and rail spending.
Campaigning with Daniel Andrews in Melbourne for the first time on Tuesday, Mr Albanese also dodged questions about why he promised $10bn to the Suburban Rail Loop as the opposition infrastructure spokesman at the last election, when there was no business case or detailed design work.
The Premier praised federal Labor’s $2.2bn commitment for the $34.5bn eastern section of the loop between Cheltenham and Box Hill, although he said he would always want more.
Premier slams Morrison
Mr Andrews used the opportunity to claim Scott Morrison had “ripped off” Victorians by failing to invest in the project.
“Every federal dollar that Victorians get from the miserable Morrison government, we ought to bow our head and treat it like it’s foreign aid,” he said.
“We have been ripped off by this Liberal-National government and instead of Mr Morrison talking about the issue, he ought to have been here delivering for Victorian workers and families.”
The Premier said the state would always like more funding but had been offered $2.2bn from Labor, in comparison to “zero dollars” from Mr Morrison.
He blasted the federal Liberal Party saying it was all talk and no action, adding the Prime Minister had “run out of time”, had “an excuse for everything and a plan for nothing”.
He also took aim at senior Victorian Liberals who were critical of his government’s handling of the pandemic.
“When Victorians were at their darkest time, senior federal Liberals proved to be Liberals first and Victorians second,” Mr Andrews said.
“They thought that they were bagging our government — they were bagging every Victorian who was following the rules and doing the right thing.
“And that might be one of the reasons why they’re in a bit of trouble in their seats.”
The Prime Minister accused Mr Albanese of throwing money at the states, saying Australians did not need a “pushover” in power.
Albanese says project will ‘transform’ Victoria
Prior to their joint press conference, Mr Albanese and Mr Andrews visited a level crossing removal construction site, in a stage-managed media opportunity after questions were raised about their failure to campaign together so far.
The Labor leader had already visited Labor premiers in Queensland, Western Australia and South Australia.
Asked why he promised $10bn for the loop in 2019, Mr Albanese said: “You can get advice from any transport economist and you look at the way that cities work”.
He said the project was a “natural extension” of the Metro Tunnel because “you need to fix the hub and then you need the spokes to be connected”.
Mr Albanese said the Suburban Rail Loop would transform the way Melburnians travelled around the city and the whole of the state.
“It will do what great cities do,” he said.
“If you think about the great cities of the world, London, Paris, New York, you don’t have to get into the centre to get around those cities.
“What the suburban rail loop does is improve the efficiency of the entire rail network.”
Mr Albanese said Victoria hadn’t received its fair share of infrastructure funding.
He said the project would create thousands of jobs and make an “enormous” difference.
Federal Labor’s commitment to the Suburban Rail Loop – which the Herald Sun revealed was in the works in March – is one of its biggest spending pledges made during the election.
But it is well below the $10bn promised by former Labor leader Bill Shorten during the last campaign.
Scott Morrison recently rejected the Premier’s bid for $11.5bn over 10 years to help build the $34.5bn eastern section of the loop between Cheltenham and Box Hill, arguing the project did not stack up.
The Labor leader disagreed, saying it would be city-shaping infrastructure.
“This project will change how Melburnians live and how they interact with their city,” Mr Albanese said.
“I won’t be a prime minister that uses infrastructure to play political games, I will be a prime minister who invests in the projects that matter.”
But Urban Infrastructure Minister Paul Fletcher on Tuesday said Labor’s $2.2bn promise “won’t even touch the sides of this mammoth undertaking”.
“Given urban infrastructure is typically funded on a 50:50 basis with the state, it begs the question: is Mr Albanese keeping Australian taxpayers in the dark on the true amount of commonwealth funding that he will provide to this project?”
“Or perhaps he knows that there is no evidence to show the project stacks up and this is simply an empty promise.”
The commitment will be crucial to Labor’s bid to win the Liberal-held eastern suburbs electorate of Chisholm, Victoria’s most marginal seat, which overlaps the route of the loop.
Federal opposition infrastructure spokeswoman Catherine King said the project would benefit regional Victorians.
“If you live in Ballarat or Bendigo … to actually get to the southeastern suburbs, you of course have to come into the centre of town to do that and if you want to get out to the southeast, you then have to change trains,” she said.
“This will transform the way in which country people access Melbourne, as well.”
Project ‘will slash travel times’
Early works are due to begin this year on the 26km tunnel, which will reshape suburban Melbourne with major developments around six new station precincts.
The Herald Sun can reveal up to 10 tunnel boring machines could be used to churn through rock and soil under the eastern suburbs.
This plan is expected to speed up build time, allowing construction to start in 2026 and the tunnel to open in 2035.
Federal Labor’s funding promise is touted as an “initial” investment over five years, opening the prospect of further cash if Mr Albanese wins on May 21.
Mr Andrews said the project would slash travel times and take more cars off the roads for faster and safer journeys.
“We welcome federal Labor’s contribution to the Suburban Rail Loop, which will support thousands of Victorian jobs in the coming years. It’s a project Victorians voted for – and we’re getting on with it,” he said.
Expressions of interest are now open for two tunnelling packages for the project, the first of which is to burrow almost 14km from Cheltenham to Glen Waverley.
A global search is underway to maximise the number of companies vying for the lucrative jobs.
In 2019, Mr Shorten and Mr Albanese – who was the opposition’s infrastructure spokesman – promised $10bn to the loop over 15 years. That would have been the biggest federal commitment to a public transport project in Australia’s history.
They planned to combine the $10bn with another $5bn to match the federal government’s investment in the long-awaited Melbourne Airport rail link, which will eventually form part of the western section of the Suburban Rail Loop.
About 800 jobs are expected to be created during early works starting this year on the eastern section, which will support thousands of jobs once major construction begins.
“While the Morrison-Joyce government is focused on picking fights with Victorians, an Albanese Labor government will partner with the state to build the projects that matter,” Ms King said.
An environment effects statement is still being assessed for the project, which the state government hopes to finalise mid-year.
But the state opposition has promised an audit of the project if it wins the November election, to ensure it represents value for money before contracts are signed.
The full 90km orbital line could cost as much as $120bn and will take decades to complete.
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