New business case needed for East West Link, PM told

Melbourne’s “rapid” population growth may have made it easier to build the East West Link, but the project business case is now outdated and needs to be revisited according to advice handed to the Morrison Government.

New road projects underway in Melbourne and the city’s “rapid” population growth may have made it easier to build the East West Link, according to advice handed to the Morrison Government.

The project’s last business case, completed in 2013, is now outdated and a new study needs to be developed to make sure the project stacks up.

Projects including the West Gate Tunnel and North East Link overlap with the East West Link and need to be taken into account, according to the federal Department of Infrastructure.

Briefings from the department to the federal government, ahead of a meeting between Prime Minister Scott Morrison and Victorian Premier Daniel Andrews in July, say a new business case is needed because of “the significant level of new transport infrastructure that has been delivered or is underway” and “rapid population growth”.

“The Victorian Government continues to be critical of the Australian Government’s commitment to East West Link despite the project’s prioritisation by Infrastructure Australia and Infrastructure Victoria,” states one briefing, released under Freedom of Information laws.

A view of the North East Link in the design mock up.

“To re-engage Victoria on the need for a road link between the Eastern Freeway and CityLink, you may wish to propose a new approach that includes an initial strategic assessment of the project that would provide the evidence for Victoria to support the development of a full business case.”

The Andrews Government has so far refused to accept the $4 billion in funding from the Morrison Government to build the 6km road from Hoddle St to Parkville, which has been committed as a contingent liability.

Federal Infrastructure Minister Alan Tudge said the Victorian government should “at the very least” update the business case for the project.

“We have good working relationship with the state government, but we would obviously like Mr Andrews to say “yes” to the East West Link,” Mr Tudge told the Herald Sun.

“After all, they would not need to contribute a cent.”

Federal Labor’s infrastructure spokeswoman Catherine King said Mr Tudge needed to explain when he first received advice that the East West Link required a new business case.

Ms King said the increased commitment of $1 billion committed at this year’s election was “simply a vanity exercise” so the government could claim its infrastructure program was greater than $100 billion.

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“To try and deflect attention from his failing Urban Congestion Fund, Minister Tudge promoted his Government’s commitment to the flawed East-West Link, a project with an out-of-date business case not supported by the Victorian people at two state elections,” she said.

A spokeswoman for the Victorian government said it was having “constructive conversations” with the Commonwealth on a range of election commitments, “but our position is clear on the East West Link”.

It is understood the Andrews Government believe the building of the North East Link and West Gate Tunnel make the East West Link less viable.