Victoria Opposition Leader Michael O’Brien vows to scrap Belt and Road deal

Victoria Opposition Leader Michael O’Brien says he will scrap the Andrews government’s Belt and Road deal with China if elected.

Michael O'Brien says despite China’s increased role in Victoria’s construction program, there was no equivalent commitment from the Chinese side. Picture: Alex Coppel

Victoria Opposition Leader Michael O’Brien said he would withdraw from the Andrews government’s controversial Belt and Road deal with China if elected.

Mr O’Brien has condemned the agreement and described it as “dangerous debt diplomacy” in recent weeks, but has until now stopped short of saying he would scrap it.

The Australian understands the move comes amid pressure from colleagues and the Liberal Party membership to take a stronger stance on the issue.

Mr O’Brien said it was not a decision he had taken lightly. “But it is the right decision for Victoria,” he said.

“The Belt and Road deal is not in Victoria’s interests. It doesn’t support our sovereignty, our security or our jobs.

“The Andrews Labor government signed on to the Chinese Government’s Belt and Road deal in October 2018 without telling Victorians.

“It did so contrary to the position of the Australian government and contrary to the position of the Federal Labor Party and every other state.”

Under a deepening of Victoria’s Belt and Road deal signed during Premier Daniel Andrews’ trip to China in October last year, the state agreed to “increasing the participation of Chinese infrastructure companies in Victoria’s infrastructure construction program”.

Mr O’Brien said there was no equivalent commitment on the Chinese side.

“Instead we get platitudes limited to “promoting of Victorian firms in China,” he said.

“While Chinese Government-owned companies have been given contracts to build the Metro Tunnel, the botched West Gate Tunnel and remove level crossings, Victorian farmers have been slugged by a punitive 80 per cent tariff on barley exports to China.

“Labor’s Belt and Road deal is all one-way traffic – and Victoria is driving the wrong way.”

Chinese-owned company John Holland is part of consortia bidding for the $16.5bn North East Link road project, and building both the $6.7bn West Gate Tunnel and the $11bn Melbourne Metro rail tunnel.

Both Melbourne Metro and the West Gate Tunnel have recently run into trouble, with the Andrews government currently in negotiations over a cost blowout which could exceed $3bn on the rail project, and hundreds of West Gate Tunnel workers stood down this month amid a dispute over toxic soil.

Mr O’Brien said the Coalition remained committed to promoting trade and investment in Victoria and around the world, including with China.

“We would not be Victoria without the amazing contribution that our local Chinese community has made to our great state; a contribution that I value and will always promote,” Mr O’Brien said.

“Under an O’Brien Liberal Nationals government our engagement with China will be based on mutual interest and fair dealing – not deals that pit Beijing’s strategic interests against Australia’s.”