Prime Minister witholds $1.4 billion asset recycling cash bonus

PRIME MINISTER Malcolm Turnbull is refusing to give Victoria a $1.4 billion bonus from the Port of Melbourne sale, warning Daniel Andrews not to “play politics” over the deal.

PRIME Minister Malcolm Turnbull is refusing to give Victoria a $1.4 billion bonus from the sale of the Port of Melbourne as he warns Premier Daniel Andrews not to “play politics” over the deal.

But state Opposition Leader Matthew Guy says his federal Liberal colleagues should stump up the full 15 per cent bonus Victoria is owed after selling the port for $9.7 billion.

The PM told the Herald Sun on Thursday his government would pay Victoria only $877 million from the asset recycling fund. As the federal-state spat deepened, Mr Andrews tweeted a fake “overdue invoice” for $1.4 billion and urged Treasurer Scott Morrison not to break his promise.

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Mr Guy said the Federal Government should hand over “every single cent” owed. “If there’s money owed to Victoria, it should come and it should come in full,” he said.

Prime Minister Malcolm Turnbull and Premier Daniel Andrews. Picture: John Feder

Mr Turnbull said from the US his government would pay $877 million “where we can agree on the allocation of funds”. “We expect to be able reach agreement on how the funds are deployed and I can’t imagine a reason for that to be challenging as long as Daniel Andrews doesn’t want to play politics with it,” he said.

The Federal Government is trying to force Victoria to spend the money on the Melbourne Metro rail tunnel.

But Public Transport Minister Jacinta Allan said the State Government wanted it to remove level crossings, accusing Mr Turnbull and Mr Morrison of “reneging on their deal” and “dudding” Victorians.

“It’s completely bewildering to see the games that are coming out of the Federal Liberal Government,” Ms Allan said.

Mr Morrison had accused Victoria of missing the June 30 deadline for an agreement on the asset recycling bonus.

But correspondence obtained by the Herald Sun showed he had refused to sign a draft agreement last year.

Victorian Treasurer Tim Pallas wrote to Mr Morrison in December and said: “I am disappointed that this is another example where Victoria is not being treated equally.”

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