Sign that regional Victorian road upgrades are under a cloud

The state government has taken an unusual step on key projects fully funded by the federal government in a move that’s surprised Canberra bureaucrats.

Signs spruiking major road upgrades across regional Victoria are disappearing amid escalating tensions over the Albanese government's infrastructure review.

Infrastructure Minister Catherine King on Tuesday signalled that the Frankston to Baxter Rail line upgrade was on the chopping block because the state was not consulted on the project.

The Victorian government has taken down signs for several projects fully funded by the federal government, surprising bureaucrats in Canberra.

The ominous move comes as other states push for projects in Victoria to be cancelled, ahead of their own, due to its debt woes.

A roadside sign was in place spruiking upgrades on the Princes Hwy.

… but several signs have now been taken down.

At least 250 projects nationwide are at risk of being axed, after the federal government in May announced a 90-day independent review.

A Victorian government spokesman said it had “removed a number of signs that show project completion dates” that had been affected by the review.

“We’ll have more to say once we know the outcome of that review,” he said.

Two projects affected include the $2.9m Stirling Bridge upgrade in Sale, due to be completed in December, and a $9.7m Princes Hwy intersection upgrade in Bairnsdale due in June 2024.

Infrastructure Minister Catherine King has signalled that the Frankston to Baxter Rail line upgrade was on the chopping block. Picture: Martin Ollman

Gippsland MP Darren Chester said he feared that lives would be lost and people would be seriously injured on sections of regional Victorian roads that funding had been secured for, but the government was failing to deliver.

“The 90-day review has now taken almost 200 days and work has stopped on road safety projects that were due to be built this year,” Mr Chester said.

“It’s a complete disgrace.

“Every job is getting more expensive while we wait for answers from Minister King and her razor gang review.”

Sign of the times? Roadside signs which advertised the start of stalled Federal Government-funded safety projects on the Princes Hwy have been removed because Minister Catherine King has taken almost 200 days for a 90 day review of infrastructure. Lives are at risk #lovegippslandpic.twitter.com/Mjgk7NEiOs

— Darren Chester MP (@DarrenChesterMP) November 4, 2023

But Ms King said former Coalition governments had announced projects without enough funding or consultation with the states.

She said the government’s $225m commitment to upgrade the Frankston to Baxter rail line two elections ago had come as a surprise to the Victorian government.

“$225m is not going to get you very far,” she said, adding the state had never committed to the project.

The government’s contentious infrastructure review has recommended the cancellation of large and small projects in order to address at least $33bn in cost blowouts, and give Labor headroom to add its own projects to the $120bn investment pipeline.

Sub-programs are understood to be safe from the chopping block.

Queensland Treasurer Cameron Dick has demanded that infrastructure cuts be made to southern states with low growth and high debt.

While WA Treasurer Rita Saffioti has reportedly said that infrastructure projects in the west had not suffered the type of cost blowouts seen in the eastern states, adding she was confident that it was better placed to deliver projects.

Meanwhile, the CFMEU has hit back at Treasurer Jim Chalmers’s claims tough decisions would need to be made about infrastructure projects in order to tackle inflation saying they should target the mega profits of banks.