Suburban Rail Loop Authoritiy records third consecutive annual operating loss

The Suburban Rail Loop Authority has recorded a loss of nearly $3m in its biggest deficit to date amid ballooning staff expenses and super-sized salaries for senior executives.

The agency charged with delivering the Allan government’s controversial Suburban Rail Loop project has recorded its third annual operating loss.

The Suburban Rail Loop Authority recorded a $2.981m loss this financial year, its biggest deficit to date.

It comes as employee expenses ballooned from $42m to $57m, including four senior executives each earning more than $500,000 a year.

The authority has repeatedly applied to the state’s public sector pay-setting body, the Remuneration Tribunal, for permission to pay senior executives inflated salaries that it says is necessary to compete with a hot infrastructure market.

The Suburban Rail Loop Authority recorded a $2.981m loss this financial year, its biggest deficit to date. Source: Suburban Rail Loop Authority

Last year, the Herald Sun revealed a secret report showing that the combined salaries of 25 Big Build bosses was more than $12m a year, while some executives were paid up to 70 per cent more than the premier.

SRLA chief Frankie Carroll said there had been significant progress in the delivery of Suburban Rail Loop East this year.

“More than 1400 people are now working on Suburban Rail Loop (SRL) East, with construction under way at every station site between Cheltenham and Box Hill, and at the stabling facility in Heatherton,” Mr Carroll said.

“Over seven million hours have been worked on the project so far, with crews preparing the launch sites for tunnel boring machines ahead of tunnelling in 2026 and moving critical underground services for excavation of the six new stations and twin tunnels.

“We are also preparing the draft structure plans for the neighbourhoods around the new stations, reflecting the valuable feedback we have been receiving from local communities, councils and our stakeholders.”

The future SRL map. Picture: Supplied

The SRLA is responsible for planning and delivering the Allan government’s signature infrastructure project.

Jactina Allan has repeatedly insisted the project is not negotiable, despite growing internal angst within Labor about the scale and cost of the work.

A wide range of north and western suburbs ministers and MPs, including deputy premier Ben Carroll, have raised concerns about the affordability and viability of the project as the state faces ballooning debt expected to reach $187.8bn by 2026-27.

Labor insiders say those opposed to the project view it as a dead weight hampering the government’s ability to drive down debt and invest in key areas of health and education.

Credit agencies have also warned the government of almost certain ratings downgrades if it pushes ahead with the project without further financial support from the Commonwealth government.

Opposition Leader John Pesutto said: “we don’t have a railway line as much as we have a gravy train”.

Originally published as Suburban Rail Loop Authoritiy records third consecutive annual operating loss