Frydenberg doesn’t rule out unlocking East West cash

Treasurer Josh Frydenberg has left the door slightly open to using the $3 billion earmarked for the controversial East West Link on other major infrastructure projects in Victoria.

Treasurer Josh Frydenberg. Picture Kym Smith

Treasurer Josh Frydenberg has left the door slightly ajar on the possibility of using $3 billion of federal money set aside for the controversial East West Link, on other big infrastructure projects in Victoria.

Announcing a $9.3 billion Budget turnaround in Monday’s mid-year economic update, Mr Frydenberg didn’t rule out spending more cash on Victorian infrastructure before next year’s election.

The economic update provides the government with a $10 billion war chest for election spending and suggests that before next year’s Budget, the government may unveil $9.2 billion worth of tax cuts, spread over three years.

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The government has already announced it would bring forward a $3.2 billion tax cut for small and medium-sized businesses from 2020-21.

“We support lower taxes. We’ve already delivered legislated tax relief for small business and for families and households, and we will continue to make important decisions in the lead-up to the Budget,” Mr Frydenberg said.

A 2014 render of East West Link.

The emergence of the election war chest prompted Labor to accuse the government of “giving up on the task of Budget repair”.

The $3 billion of federal money for the East West Link has been in a “locked box” for more than four years, after Premier Daniel Andrews reversed the previous Coalition state government’s decision to build the road.

It is understood Prime Minister Scott Morrison will meet with Mr Andrews in the new year to discuss the state’s infrastructure priorities.

Speaking to the Herald Sun, Mr Frydenberg said it was still government policy that the $3 billion be spent on the stalled East West Link. But he said he could not rule out changes to that position.

“My position is, the money remains committed to the East West Link,” he said.

“But we’re constantly thinking about infrastructure projects for Victoria, and we’re constantly funding them.”

A design image of the North East Link.

The Herald Sun believes that the Morrison Government does not want to give in to Mr Andrews’ demand that the money be spent on the North East Link, but is open to considering spending it on other projects in the state.

Mr Frydenberg, responding to a recent union-funded poll showing that he could lose his safe Melbourne seat of Koo­yong at the next election, said he was confident of holding on.

“There is no such thing as a safe seat, whether you sit on a Liberal or Labor side,” Mr Frydenberg said.

“Each election, you have to work hard to win the respect and the confidence of your constituents.

“I’ll be doing everything I can to ensure that occurs at the upcoming election.”

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