Victoria battles for Port of Melbourne sale bonus
VICTORIA faces a battle to be paid even an $877 million bonus from the sale of the Port of Melbourne if it does not agree to spend it on projects dictated by Canberra.
VIC News
Don't miss out on the headlines from VIC News. Followed categories will be added to My News.
VICTORIA faces a battle to be paid even an $877 million bonus from the sale of the Port of Melbourne if it does not agree to spend it on projects dictated by Canberra.
Federal Treasurer Scott Morrison claims he has “no obligation to send them a cent” because Victoria did not reach a deal before the asset recycling program closed.
This will further inflame tensions with the State Government, which is already furious Mr Morrison is refusing to hand over the full 15 per cent asset recycling bonus for the $9.7 billion privatisation of the port, worth $1.4 billion.
The Federal Government is offering only $877 million and said it must go to the Melbourne Metro rail tunnel and the Murray Basin rail project.
But the State Government wants to spend it on its signature election commitment of removing 50 level crossings.
Mr Morrison said the Federal Government “actually has no obligation to send them a cent” because the State Government did not finalise an agreement before the June 30 deadline.
“They had two years to do this, they didn’t get it done in that time,” Mr Morrison told Sky News.
He said Victoria would get $877 million to spend “on the projects we said we’d do it on”.
State Treasurer Tim Pallas said Victoria was being ripped off by the Federal Government. “When all is said and done, this is the Prime Minister and the Liberal Party going back on their word — they simply can’t be trusted to look after Victorians,” he said.
Mr Morrison said it was “a bit rich” for Victoria to complain about not getting the full 15 per cent bonus because the State Government wasted $1.1 billion by tearing up the East West Link contract.
Mr Pallas wrote to Mr Morrison on June 29 and said the Metro tunnel project was already “fully funded” so he asked for the asset recycling bonus to be spent on removing level crossings. He said earlier this week that he was “not having Scott Morrison or Malcolm Turnbull or any other Sydneysider telling us how to spend our money or build our infrastructure”.
The Victorian Chamber of Commerce and Industry has also called on the Federal Government to hand over the full $1.4 billion bonus.
PORT OF MELBOURNE LEASED FOR MASSIVE $9.7 BILLION
TERRY MCCRANN ON THE PORT OF MELBOURNE SALE
WHAT’S IT ALL ABOUT?
■ The Federal Government’s asset recycling scheme offered to pay states a 15 per cent bonus for the price they got for selling off public assets.
■ The State Government this week secured a $9.7 billion deal to privatise the Port of Melbourne, meaning Victoria should be owed a $1.4 billion bonus from Canberra.
■ But the Federal Government claims Victoria didn’t secure an agreement with it on the asset recycling contribution before the scheme closed on June 30.
■ It’s now only offering to pay Victoria $877 million — about nine per cent of the final port sale amount — which is based on earlier, smaller predictions of the port’s value.
■ The Federal Government is trying to force Victoria to spend it on the Melbourne Metro tunnel but the State Government wants to use the cash to remove level crossings.
‘Angels’: Hero Coles workers save mum’s life
A mother of three has opened up on how her life was saved after she suddenly collapsed while doing a routine supermarket shop.
Wildlife and traffic fears over music festival
Wildlife advocates fear a weekend music festival in central Victoria will endanger native animals including rescued joeys.