North East Link and East West Link in line for extra cash boost from Turnbull Government

MALCOLM Turnbull is willing to add potentially billions of dollars to the federal government’s contribution to building the North East Link, as well as the controversial East West Link.

EXCLUSIVE: MALCOLM Turnbull is willing to add potentially billions of dollars to the federal contribution to building the North East Link, as well as the controversial East West Link.

Victoria has already been promised $1.75 billion by the Prime Minister to build the “missing link” in the Metropolitan Ring Road, on top of a longstanding $3 billion federal commitment to East West.

But the Herald Sun can reveal Mr Turnbull is open to putting significantly more money on the table to deliver what he sees as critical city-shaping infrastructure.

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Premier Daniel Andrews with Prime Minister Malcolm Turnbull. Picture: Gary Ramage

One of the options being considered is a boost to the federal upfront cash contribution for the $15.8 billion North East Link, in return for a slice of the toll revenue.

The Victorian-first deal is understood to have been discussed in productive talks between the state and federal governments.

If it is accepted, the arrangement could have a big impact on financing of future projects.

More federal funding decisions are not expected until after November’s state election, which will determine whether Daniel Andrews’s or Matthew Guy’s infrastructure agenda is implemented.

Mr Andrews is spending $100 million to plan the North East Link but is yet to outline how he will pay for the whole project, the contracts for which he will take to market within 100 days of an election win.

Mr Guy has pledged $2 billion in his first budget to build the North East Link and the East West Link, expected to cost $7-10 billion.

There are also questions over whether federal Opposition Leader Bill Shorten will match $11 billion committed by the federal Coalition to both roads and to other projects, including the airport rail and Monash rail link.

The Herald Sun understands the Prime Minister is willing to inject extra cash into Victorian infrastructure, potentially as part of his own re-election pitch next year.

The Eastern Freeway would also be widened as part of the North East Link project. Picture: North East Link Authority

State Treasurer Tim Pallas told the Herald Sun on Tuesday night there was “clearly room for (Canberra) to do more” to help pay for the North East Link.

“We are happy to look at all options and work productively with the Commonwealth in delivering the infrastructure Victorians need,” he said.

The PM told Mr Andrews at a recent meeting that he was open to exploring further funding and finance opportunities for the North East Link.

His government considers the two toll roads to be important investments and wants Victoria to use its money, so that it can have a say in building both, including on the final design and alignment.

A $7.8 billion infrastructure package, unveiled in this year’s federal Budget eased tense ­relations between the state and federal governments over ­infrastructure spending.

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