Victorian Government rules out South Yarra interchange in Melbourne Metro

A SOUTH Yarra interchange for the Melbourne Metro rail tunnel has been ruled out by the State Government, even if the Commonwealth attempts to tie funding to its construction.

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A SOUTH Yarra interchange for the Melbourne Metro rail tunnel has been ruled out by the State Government, even if the Commonwealth attempts to tie funding to its construction.

The Herald Sun revealed on Monday that the Turnbull Government wants to earmark $857 million from its asset recycling scheme to the Metro project, which the Andrews Government will start to build in 2018.

Melbourne metro rail tunnel and underground stations to cost $6b

Under the asset recycling scheme, state governments get a 15 per cent boost to the price they get when privatising assets — such as the Port of Melbourne.

Victorian Public Transport Minister Jacinta Allan said she was surprised to hear the Commonwealth wanted to direct the money to specific projects.

“They previously said that funds out of the asset recycling scheme, that they wouldn’t be dictating what projects that money would be going to — they clearly are now so we will be having further discussions about those funds,” she said.

“We are still a long way short, even with this funding, of Victoria getting its fair share of infrastructure support from the federal Turnbull Government.”

Public Transport Minister Jacinta Allan. Picture: Chris Eastman

Opposition public transport spokesman David Hodgett and the Greens called for the extra money to be spent on a South Yarra interchange.

Federal Assistant Treasurer Kelly O’Dwyer has launched a petition on behalf of constituents in the seat of Higgins — which takes in South Yarra — also arguing for it to be included.

But Ms Allan said that would not happen, even if the Commonwealth tried to force its hand.

Labor has previously said an interchange cost too much and would lead to more property acquisitions, without delivering decent public transport benefits.

The Metro project will cost $10.9 billion and will connect South Yarra to Kensington via twin 9km tunnels.

Last week, the Andrews Government committed to funding it in the state Budget even if Prime Minister Malcolm Turnbull refuses to hand over any money.