City of Melbourne spent $825k of Covid CBD recovery funds on introducing 40km/h zones

City of Melbourne used more than $800,000 of rate and taxpayer money raised to help CBD businesses recover from Covid lockdowns to create 40km/h zones in inner-city suburbs.

Money intended for Melbourne CBD’s post-pandemic economic recovery was instead spent on creating 40km/h zones in inner city suburbs, putting up street signs and installing pedestrian crossings.

A total of $825,000 was diverted from Melbourne City Council’s $100m recovery fund for road projects, including creating speed limits on roads in East Melbourne and North Melbourne.

The revelation comes after the Herald Sun earlier this year exposed how the same cash reserve bankrolled 40km of controversial bike lanes in the CBD.

The City Recovery Fund was funded equally by Town Hall and the state government.

The $100m pot aimed to revive the central Melbourne economy by helping businesses, especially in retail and hospitality, and also paying for events.

Flinders Lane during one of Melbourne’s many lockdowns. Picture: David Crosling

City of Melbourne raised $100m to help CBD businesses rebuild for lockdowns. Picture: Ian Currie

The latest details, revealed by documents obtained under Freedom of Information laws, showed that along with the change from 50km/h and 60km/h zones to 40km/h in the two suburbs, “shared zone” signs were erected in CBD laneways.

Pedestrian crossings and traffic calming measures were also installed in Southbank, Parkville, North Melbourne and Docklands.

Street changes and related projects are usually funded via the council’s capital works budget.

Small Business Australia executive director Bill Lang said the money should have been better spent on projects that would foster economic recovery.

Mr Lang said although the money was spent between July 2021 and June 2023 during Sally Capp’s time as Lord Mayor, the current Nick Reece-led council should improve the council’s transparency, disclosure and communication around how public money was being spent.

“It continues to be disappointing why so many levels of government continue to restrict the free press who want to reveal to the public as to where their money is going and being spent,’’ he said.

City of Melbourne spent money from the fund to lower speed limits. Picture: Glenn Ferguson

North And West Melbourne Association spokeswoman Mary Masters said: “It’s a long bow to draw that 40km/h zones and bike lanes provide economic recovery for the city.”

The introduction of the 40km/h zones in North Melbourne caused confusion among residents and drivers.

Early last year, Victoria Police withdrew almost 4000 speeding fines handed out on Arden St because it was likely that drivers were unaware the speed limit had been reduced by the council.

And at the western end of Victoria St, the speed was cut to 40km/h but then reinstated a few months later to 60km/h.

A City of Melbourne spokesperson said safe neighbourhoods made Melbourne a better place to live.

“And that’s key to our long-term recovery and growth.

“We invested in infrastructure to reflect how people’s travel habits have changed since the pandemic – making it easier and safer to get to local shops, services and events.

“More than $60m from the Melbourne City Recovery Fund directly supported businesses.

“Our streets were filled with pop-up dining parklets, cleaning crews, marketing and events. We also provided rent relief and fee waivers to our hardworking traders.”

“The fund has made a real difference.’’

Originally published as City of Melbourne spent $825k of Covid CBD recovery funds on introducing 40km/h zones