State Budget 2023: North East Link delays, rail maintenance funding slashed

Senior industry sources reveal the state government may slash rail maintenance funding, with the North East Link also in the budget cut firing line.

The North East Link project is facing blowouts and delays with fears it is in the firing line following a federal government review.

Railway maintenance funding is facing major cuts and the North East Link project delays in worrying signs for commuters ahead of next month’s state and federal budgets.

Senior industry sources have revealed the Andrews Government is considering slashing metropolitan and regional rail operator maintenance budgets by up to 20 per cent.

The government’s signature North East Link project is also facing blowouts and delays with fears it is in the firing line following a review by the federal government into major infrastructure projects.

Insiders believe the review could see any project not currently underway delayed by at least two years.

It comes a week after the Saturday Herald Sun revealed Melbourne’s long awaited airport rail link will be put on hold as the government works to rein in Victoria’s rising debt.

Regional rail upgrades have been earmarked as a federal government priority in preparation for the 2025 Commonwealth Games.

Cuts to rail maintenance funding will affect both metro and regional trains.

But sources said they had been told to brace for funding cuts to regional rail works and the state’s planned regional rail revival to be scaled back.

The Geelong Fast Rail is considered “dead” as is any hope of electrifying the regional rail network.

“The theme of the budget will be if it ain’t broke, it ain’t getting a dollar,” one source said.

“Almost all upgrades to anything that isn’t critical are getting benched.”

There are also fears the government Level Crossing Removal program could be slowed.

Metro spends $12m a week maintaining tracks, equipment and its fleet of trains to prevent disruptions and delays.

Faulty equipment can create peak hour chaos by stopping a single train or by throwing out the entire timetable across the whole system.

Cutting maintenance budgets for V/Line would be even more damaging as it is still working to tackle a massive backlog in work.

The Acting Premier Jacinta Allan. providing an update on North East Link.

This network includes freight corridors, which would likely receive less attention under a reduced budget so that passenger services could be maintained.

Last year, $248m was invested into the state’s Victoria’s regional rail network including for major periodic maintenance and routine maintenance works on freight rail corridors.

Victoria’s debt level is currently on track to hit $165bn by 2025-26, with that figure expected to increase in the budget despite efforts to drive down costs.

Both Daniel Andrews and Tim Pallas have spent recent weeks spruiking the need to pay down the debt.

Funding for grassroots community health groups and not-for-profits is set to be cut, while the state’s major capital works programs are expected to be stripped back.

Sources have told the Herald Sun infrastructure spending could be “decimated” while thousands of public servants are in line to lose their jobs, with government departments told to cut 10 per cent of ongoing staff.

A government spokeswoman refused to rule out rail or infrastructure cuts.

Deputy Opposition Leader David Southwick said: “these desperate decisions will mean people will spend more time stuck in traffic and waiting for delayed and cancelled trains at a time when Victorians need these vital services more than ever.”