Jacinta Allan slams federal government over funding shortfall

Jacinta Allan has taken aim at the federal government over Victoria’s “disappointing” share of infrastructure funding, claiming the state has been short-changed.

Transport Infrastructure Minister Jacinta Allan says Victoria has been short-changed by the federal government. Picture: Luis Enrique Ascui

Victoria has been short-changed on key infrastructure funding in the federal budget, Transport Infrastructure Minister Jacinta Allan has claimed.

Ms Allan took aim at the Commonwealth government on Monday morning following revelations that $2bn out of a $3.3bn package promised for Victorian infrastructure in Tuesday’s budget — was announced one year ago.

“It’s a timely reminder for Victorians that of that $3.3bn, two thirds of that money was announced last year. (It) has been sitting around for a full year with the government not having moved a cent of that into active delivery,” Ms Allan said.

“Now, we’re having that $2bn reheated and put into another package.

“Clearly once again, as we’ve seen on so many occasions under federal Liberal National governments, we see Victoria being short-changed.”

Despite being home to one quarter of the nation’s entire population, just 18 per cent of funding is allocated from the Commonwealth.

Jacinta Allan says Victoria is not getting a ‘fair and equitable distribution’ of transport project funding.

“That’s not a fair and equitable distribution of the funding,” Ms Allan said.

“We make very strong recommendations to the federal government on Victorian priorities. It’s disappointing yet again to see Victoria not receive its fair share.”

The state government has splashed $38bn on three key infrastructure projects — the North East Link, Metro Tunnel and the West Gate Tunnel project — but the federal government has only stumped up $1.75bn for the North East Link, Ms Allan said.

“If we were any other state we’d be getting 50 per cent. $19bn would be invested in this state,” she added.

“If you look at the amount of work we’ve got going on here in Victoria, there are so many opportunities to get that money moving for Victorians right now. Sadly, that money continues to sit in that locked box.

“Investing in these projects is investing in the people of Victoria.”

It comes after the Commonwealth announced it would commit $1.6bn to build a giant freight terminal in Beveridge, in the north. It will also allocate $740m for a similar facility in Truganina, in the west.

Ms Allan says the federal government has only stumped up $1.75bn for the North East Link.

But Ms Allan said the Andrews government’s hope was for one intermodal freight terminal to be established in the western suburbs.

“They have a view about the northern location. It’s for them to explain why they think that is part of the priority. We will continue to push very strongly … for the west,” she said.

“The Victorian government made it very clear, and has made it very clear on a number of occasions, that our priority for the establishment of an intermodal freight terminal for our city and state is in the western suburbs of Melbourne.

“There’s a very good logical reason for this. It’s because the western suburbs of Melbourne is the heart of Australia’s freight and logistics industry. In terms of goods moved through this part of Melbourne, it is equivalent to Brisbane and Adelaide combined, so it’s a huge amount of freight that moves through this part of the state.”

Asked if there was a benefit to building both sites, Ms Allan said the federal government needed to explain their analysis which supported that case.

“What we can see very clearly is the need is there for the west right now … West has to be first cab off the rank,” she added.

Opposition Leader Matthew Guy says the state government needs to stop treating the Commonwealth ‘like an ATM’. Picture: Jake Nowakowski

Opposition leader Matthew Guy said the state government needed to stop treating the Commonwealth “like an ATM”.

“Jacinta Allan should just grow up. I think we’re just sick and tired of the state government blaming the federal government. Just grow up and get on with your job,” Mr Guy said.

“Jacinta Allan has blown out major projects in Victoria to the tune of $24bn and now she’s demanding more money. She’s had plenty of it. Now she’s crying poor and wants more money.

“How about grow the hell up? Manage your own projects and then start having it out with other people. I think Victorians are sick to death of this state government just blaming everyone but themselves.”

Mr Guy said the government’s major project cost blow outs could have been spent on building an infectious diseases hospital while also funding the entire mental health budget.

“Jacinta Allan is just addicted to playing politics. She’s not interested in what’s best for Victoria, she’s interested in playing politics on behalf of the Labor Party,” he said.

“The state is in a perilous economic position. It needs a government that’s focused on recovery and rebuilding.”

But Acting Premier James Merlino has lashed Mr Guy for refusing to call for a “fairer share of funding” for Victoria.

Mr Merlino said it was time that “Matthew Guy got out of bed with Canberra and started fighting for his state”.

“Matthew Guy is always a Liberal first and a Victorian second — he should be ashamed for not standing up for our state, and Victorians will remember his refusal to fight for our fair share for a long time,” Mr Merlino said.

“Even his own frontbench knows that the Leader of the Opposition is making the wrong choice — backing Scott Morrison and the Federal Liberals as they continue to short-change Victorians.”