Melbourne Metro Tunnel to receive $857 million funding boost

THE Federal Government will give money to Melbourne’s Metro Tunnel after the state treasurer claimed the PM “forgot” where Victoria was.

The Federal Government is expected to commit funding to the Melbourne Metro Tunnel project. Source: Supplied

THE Turnbull Government has committed millions to help fund the Melbourne Metro Tunnel project, despite the Victorian Treasurer giving the Prime Minister a spray at last week’s State Budget.

Victorian Treasurer Tim Pallas announced the Victorian Government would fund the whole cost of the $10.9 billion Melbourne Metro Tunnel because it couldn’t wait any longer for the Turnbull Government to come to the party and front up some funds.

“While there was hope that Mr Turnbull would support the project, it is now evident that he is unwilling or incapable of doing so,” Victorian Premier Daniel Andrews said in a statement.

Mr Pallas said he still wanted to involve the Federal Government in the project, but didn’t hesitate to give Prime Minister Malcolm Turnbull a kick over the lack of funds the state had received.

“I’m not sure that the Federal Government know where Victoria is. Certainly, their allocations don’t seem to give much confidence that they do,” he said.

But the Federal Government has backflipped and is now set to pour $857 million into Victoria’s Melbourne Metro Tunnel project.

Treasurer Scott Morrison has told the Herald Sun the money would be allocated in Tuesday’s Federal Budget.

Victoria will get a total of $2.4 billion for road and rail projects in Mr Morrison’s first Budget, The Australian reports.

Victoria will get $877 million from a federal asset recycling fund over four years after the state passed laws to sell the 50-year lease of the Port of Melbourne — a sale expected to net at least $5.6 billion.

Of that federal money, $857 million will go towards the Metro project and $20 million will finalise funding on the Murray Basin regional rail project.

Mr Pallas has been arguing for an increase in the state’s federal infrastructure funding allocation, which was sitting at around nine per cent.

NSW is getting about 36 per cent.