Victorian Liberal Party vows to shelve the Suburban Rail Loop if elected

John Pesutto says he will put the Suburban Rail Loop on ice if the opposition is elected to government, saying he’s not convinced it should be a priority for the state.

The state opposition has recommitted to putting the divisive Suburban Rail Loop on ice if elected to government.

Opposition Leader John Pesutto says he would shelve the $125bn project amid concerns about the lack of a business case and its multi-billion dollar price tag.

The policy was announced by former leader Matthew Guy in the lead-up to last year’s state election.

It has been subject to a review launched after Mr Pesutto became leader in December.

He told 3AW on Monday that he was not yet convinced the project should be a priority for Victoria.

John Pesutto says he’s not convinced the Suburban Rail Loop should be a priority for Victoria. Picture: Luis Enrique Ascui

“What can’t we build if we commit to this project,” he said.

“Even if, and it may, it can be stacked up as a business case, do we want to invest, put all of our eggs in one basket?

“I don’t think we should.”

Costings released by the Parliamentary Budget Office have estimated the project to cost $125bn, more than double the government’s initial estimate.

A $50bn price tag was attached to the project when it was first announced by Daniel Andrews in 2018.

“We expect the cost to build and operate SRL East and North will be $200,287.4m to 2084-85,” the report says.

“This consists of asset expenses of $125,044.5m and operating expenses of $75,242.9m.”

Mr Guy promised to redirect any money saved from not building the loop into the state’s hospital system.

The move cemented transport and health as key campaign issues.

The Andrews government has so far set aside more than $11bn to the project, with $2.2bn being used for early works.

Construction on the $34.5bn Cheltenham-Box Hill section of the huge project – which will ultimately provide 90km of orbital rail to Werribee – began in June and is due to be completed by 2035.

Albo backs rail loop

Prime Minister Anthony Albanese played down fears Victorian rail plans could be slowed by federal government scrutiny, promising a swift infrastructure review to “get on with nation building”.

The $10bn Airport Rail Link will come under the microscope as part of the review into projects around the country, sparking concern the long-awaited venture will be delayed despite the federal government committing $5bn in funding in its latest budget.

Mr Albanese on Monday said he wouldn’t “pre-empt” the infrastructure review but threw his support behind Melbourne’s rail projects.

“Certainly, projects like Melbourne Metro (Tunnel) will be nation building. Projects such as Suburban Railway will be as well,” he said.

Prime Minister Anthony Albanese says the Suburban Rail Loop will be ‘nation building’. Picture: Martin Ollman

“We will have a very quick review over coming months of the infrastructure program to make sure that going forward, that what’s committed to can actually be delivered.

“That the dollars are available, the time frame is available, and that we get on with the business of nation building.”

Mr Albanese said the Metro Tunnel project should have already been completed and opened, blaming the Abbott government for cutting funding in 2013.

“We would have been getting on with other rail projects here in Melbourne if it wasn’t for the actions of the Abbott government, but good on the Andrews government for getting on with building so much infrastructure here in Victoria,” he said.

“The Andrews government is going to participate and be part of the review.

“I’m very confident that together with the Andrews government we will actually get outcomes.”

Mr Albanese hinted the review would place road projects around the country under a higher level of scrutiny.

“In some cases, we know that there are examples of road projects that had a costing of many hundreds of millions of dollars that had, like, $50m or $40m allocated to it.

“Now that’s not ever going to proceed.”

Mr Albanese said he remained confident in Infrastructure Minister Catherine King’s handling of her portfolio, after she wrongly stated the Airport Rail Link was not part of the review before having to confirm that it was.

“ (Ms King is) a proud Victorian who actually understands how you get infrastructure built. “And it won’t be built with colour-coded spreadsheets. It will be built on the basis of need and also built on the basis of agreement with state and territory government.

“And certainly, I’m a Prime Minister who has a record of building infrastructure in this country.”