‘Outrageous use of Victorians money and another example of Labor’s waste and incompetence’: Liberal, David Southwick

The salaries of State Tolling Corporation executives could nudge $1m, years before the North East Link even opens to cars.

An artist impression of an aerial view of part of the North East Link. Picture: Supplied

The director of Victoria’s state-owned toll operator will be paid $435,000 a year, five years before the North East Link opens to cars.

And it’s newly-appointed chief executive could earn even more, pushing executive pay on the new agency close to $1m before a single motorist travels through it.

Documents provided by the Victorian Independent Remuneration Tribunal show the government applied to pay the State Tolling Corporation’s (STC) director above the salary limit of $384,000.

This was approved up to $435,000 and applies from November 2022 to 2025.

The Department of Transport and Planning did not respond in time to questions from the Sunday Herald Sun about what the STC does and why it needed senior executives at such an early stage.

It has been set up to manage North East Link as a toll road, with revenue collected by the state and used to pay off the $18bn project.

Artist impression of North East Link tree plantings along Koonung Creek and Koonung Trail. Picture: Supplied

Construction on the road and tunnel is underway but the motorists who would pay these tolls are not expected to travel through it until 2028.

The STC has a board of directors and this week appointed a chief executive, An Nguyen.

Her salary is not yet disclosed but her role is more senior and expected to also draw a hefty pay packet.

In a release announcing her appointment, Ms Nguyen said: “I feel enormously privileged to be given the opportunity to lead STC on its exciting journey ahead to build its commercial road capability to be the owner-operator of the North East Link and to provide the Victorian Government with flexibility to manage its commercial road network in the future.”

Opposition transport infrastructure spokesman David Southwick said as Victorians battled cost of living, the state was paying a significant salary “to run the toll system on a road that is at best five years away”.

“This is an outrageous use of Victorians money and just another example of Labor’s waste and incompetence.

“With Victorians paying the highest taxes in the nation and our record debt continuing to rise, we simply cannot afford more waste on our major projects and this decision must be immediately reconsidered.”

Deputy premier Jacinta Allan providing an update on North East Link. Picture: Supplied

The Andrews government’s decision to set up its own tolling corporation was announced in 2020 and created through legislation.

It came amid ongoing frustrations over lengthy delays and blowouts on the West Gats Tunnel, which is being delivered in partnership with tolling giant Transurban.

The STC model was created by the government through consultation with PwC, Clayton Utz and other advisory firms.

It is an independent government corporation, meaning it takes on responsibility and manages any risk for how much money the North East Link collects, rather than a government department.

Other pay applications to the tribunal include the salary for Kevin Devlin, the new Director-General of the Major Transport Infrastructure Authority.

The agency received approval to pay Mr Devlin $675,000, an extra $164,000 above the approved rate.

However this was a downgrade from his predecessor Corey Hannett, who received sign off to be paid up to $780,00.

The Chief Actuary at WorkSafe, charged with the financial sustainability of its compensation scheme, was also approved for an increase of $42,000.

It came at a time the Andrews government told the public that WorkCover was “fundamentally broken”.