Allan government rebadges Suburban Rail Loop as ‘housing project’
The Allan government has relabelled the Suburban Rail Loop a ‘housing project’, while withholding government expenditure on the main works of the project from the state budget.
Victorian Opposition Leader Brad Battin says no rebranding will change the outcome of the Suburban Rail Loop after it was rebadged a “housing project” in the state budget, despite initially being lauded by the Allan government as a major transport project.
Budget papers released on Tuesday deemed the SRL “so much more than a train line” and Treasurer Jaclyn Symes called it “Australia’s largest housing project” in her budget speech.
“With Melbourne expected to reach the size of London by the 2050s, (the SRL) will deliver 70,000 more homes on the doorstep of healthcare, education precincts and jobs,” Ms Symes said.
The budget failed to disclose the Allan government’s total estimated investment in the main works of the project amid deepening funding uncertainty.
Several infrastructure investments aimed at delivering a “world-class transport network” were revealed, including $4.1bn to build a Sunshine Station “superhub” and $727m to “switch on” the Metro Tunnel.
The SRL, however, was labelled a housing initiative, with more than $2.371bn invested in “early works” of the first stage of the project linking Cheltenham to Box Hill, while the cost of “main works” was not confirmed.
“The (SRL) East is expected to cost between $30bn to $34.5bn and is targeting delivery by 2035,” the budget papers read. “The (total estimated investment), estimated expenditure and estimated completion date will be disclosed following the procurement of the remaining main works packages.”
On Tuesday afternoon Mr Battin slammed the government for not having the “courage” to include SRL costings in the budget despite “bragging” about the project. “They haven’t even had the courage to put in the budget what the costs are,” he said. “They just continuously mislead Victorians (and) what we end up with is higher debt and more deception.”
Mr Battin said the state government’s decision to exclude its expenditure on the SRL from the budget showed it was “embarrassed” by its “pet project”.
“They know this is going on a credit card that is going to cost generations. Victorians will be paying increased taxes because of this government’s decision to push through with a project that everybody in the world knows we simply can’t afford,” he said.
On the recategorisation of the SRL as a housing initiative, Mr Battin said it would be “the same dud project” no matter the “rebranding”. “If they were so confident in it, then they should have (included) it in the budget, not to be confirmed,” he said.
“You can’t continue down a path where you’re not putting in and exposing to the Victorian community how much it is actually costing because we know that even their $34bn envelope will go nowhere near delivering this project, and I believe it will end up well over $50bn.”
Last week S&P Global analyst Rebecca Hrvatin told The Australian that Premier Jacinta Allan’s signature project was at risk of budget blowouts that could cripple Victoria’s credit rating further after it was downgraded from triple A to AA in 2020. “We believe there’s a real risk the Suburban Rail Loop may cost more than the latest government forecasts, given the size and complexities of the undertaking and the state’s recent history of major projects going well over budget,” she said.
“Further, if Victoria pushes ahead with (SRL) without additional federal government funding, the state’s fiscal outlook may weaken, further eroding its credit standing.”
Ms Allan faces challenges over how her government will pay for the project. The Albanese government is investing only $2bn and the Victorian Auditor-General has questioned where the remainder of funding will come from.
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