‘Labor’s funding plan for the SRL is in disarray’: David Southwick

Farcical bureaucratic scenes have played out in relation to cash for the Suburban Rail Loop East, with claims funding for the big ticket Allan government project is “in disarray”.

Funding for the $34.5 billion Suburban Rail Loop East is in shambles, with a project assessment needed to secure Commonwealth cash stalled amid a bureaucratic standoff.

Infrastructure Australia says it is still waiting on information from Victoria about the controversial project to properly assess its merit but Victoria’s top transport bureaucrat has declared the agency has “all the information that they have asked for”.

The farcical situation was revealed on Friday, three days after pleas by the Allan Government for more federal funding were rejected by Treasurer Jim Chalmers.

The Allan Government, which has committed $11.8bn for the project, wants the Commonwealth to increase its funding promise from $2.2bn to $11.5bn.

Premier Jacinta Allan. Picture: Wayne Taylor

The state says taxes on developments in precincts around the project stations, known as value capture, would fill the remaining $11.3bn funding hole.

On Wednesday, Mr Chalmers said his government’s initial $2.2bn pledge was still contingent on the SRL East being assessed by bureaucrats as “value for money”.

Federal infrastructure minister Catherine King confirmed funding was “contingent on the project meeting the relevant conditions under the National Land Transport Act 2014 and National Partnership Agreement” and said “Infrastructure Australia is also undertaking an independent assessment of the project”.

“No decisions have been made about further funding, and before any further requests for funding, Victoria needs to work with Infrastructure Australia so it can provide advice on the project.”

But in farcical scenes on Friday, the head of Victoria’s transport department, Paul Younis, told a state parliamentary committee that Infrastructure Australia has “all the information that they have asked for” including a project business case.

“There is no further information that we are providing to Infrastructure Australia,” he said.

The Herald Sun has confirmed that the business case was sent through in August, 2022, and that feedback was provided to the State on next steps that were required to progress a “detailed assessment”, the guidelines of which are on federal websites.

The Opposition claims funding for the SRL is in disarray. Picture: Supplied

A spokesman for Infrastructure Australia said: “We have previously provided guidance to the Suburban Rail Loop Authority on the requirements of our assessment framework, and the information we need to conduct our assessment”.

Meanwhile, Victorian Transport Infrastructure Minister Danny Pearson told the parliamentary committee that value capture funding mechanisms would not be set until planning rules around stations were established in 2026.

That is the same year that project tunnelling is scheduled to start.

Opposition transport infrastructure spokesman, David Southwick, said: “Labor’s funding plan for the SRL is in disarray”.

“With no detail on value capture taxes and the Federal Labor Government walking away from the project, Premier Jacinta Allan has a $20 billion funding black hole for this project.”