Victorian state election 2018: Coalition promises $5b boost by leasing off sewage business

The Coalition have come up with an interesting way to pay for major projects like East West Link and high speed regional rail — a long-term lease on one of Melbourne’s smelliest services.

EXCLUSIVE: The Coalition will have a $5 billion infrastructure war chest if it wins, with the massive budget boost to come from privatising Melbourne’s ­sewage treatment service.

The Herald Sun can reveal the Opposition plans to sell a 50-year lease to help pay for its regional high-speed rail plan, suburban rail extensions and the construction of both the East West Link and the North East Link.

Under the deal, the new ­private owners of Melbourne Water’s sewage treatment business would be blocked from jacking up consumer fees. Those would still be set by an independent regulator.

PORT OF MELBOURNE LEASED FOR $9.7B

DANIEL ANDREWS’ REPORT CARD

MORE VICTORIAN STATE ELECTION 2018

Melbourne Water’s western treatment plant.

With both major parties ­releasing their pre-election costings today, shadow treasurer Michael O’Brien said the lease would help the Coalition deliver its infrastructure ­commitments without having to increase taxes.

“This is a win-win for Victorians,” he told the Herald Sun.

“Labor will tax Victorians to pay for their unfunded promises. The Liberal Nationals will cut taxes while funding ­projects that Victorians need.”

Opposition Leader Matthew Guy with wife Renae and some of his frontbench team. Picture: David Crosling/AAP

Opposition Leader ­Matthew Guy also revealed last night that the Coalition would extend the stamp duty concession for pensioners downsizing their homes, ­saving them up to $5200.

Under the $100 million tax cut, pensioners buying homes worth up to $950,000 would receive a discount. The cap is currently $750,000.

In recent privatisation deals, Labor boosted the state budget bottom line by leasing the Port of Melbourne, reaping $9.7 billion, and it received another $2.8 billion by selling off the land titles office.

The Coalition believes it can bring in at least $5 billion by leasing the sewage business, most likely to a pension or super fund giant.

“Having sold or leased nearly $15 billion of Victorian assets in just four years, we ­expect Daniel Andrews and Labor to support this important policy,” Mr O’Brien said.

Premier Daniel Andrews this morning said Labor would “have a look” at the Opposition’s plan to raise more than $5 billion, but added: “All of our numbers stack up.”

Melbourne Water treated 320 billion litres of sewage last year and under the lease, the new sewage-treatment owners would have to increase the use of recycled water for non-drinking ­purposes. Melbourne Water would ­remain owned by the state government and ­responsible to the water minister, and the pay and conditions of staff would be protected.

The Coalition would divide the cash windfall between the road and rail projects, new rail rolling stock and new and ­upgraded hospitals and police stations.

Nationals leader Peter Walsh said the lease would help cover the costs of “delivering new infrastructure to help Victoria grow and decentralise”.

“A Liberal Nationals Government won’t introduce new taxes to build the infrastructure our state desperately needs in order to become a state of cities, instead of a city-state focused on Melbourne,” he said.

[e-mail]

Twitter: @tminear

INDEPENDENT REGRETS GATTO HAPPY SNAP

ANDREWS SLAMMED OVER HANDLING OF CFA

VOTERS DIVIDED ON HOW TO PUSH POWER PRICES DOWN