New Victorian premier Daniel Andrews faces road rage on day one

THE  split between Victorian premier-elect Daniel Andrews and Tony Abbott widened yesterday when the PM vowed to build the East West Link.

Victoria’s premier-elect Daniel Andrews, right, and his deputy James Merlino enjoy the Melbourne sunshine yesterday, a day after defeating the Coalition.

THE  split between Victorian premier-elect Daniel Andrews and Tony Abbott widened yesterday when the Prime Minister vowed to build the nation’s most contentious road and tunnel ­infrastructure project, despite the Labor leader having campaigned on dumping the project.

A day after Labor comfortably secured office, defeating the one-term Coalition, Mr Abbott promised to fight to build the $7 billion first half of the East West Link through inner Melbourne. The ­relationship between Victoria and Canberra soured almost immediately as Mr Andrews promised to tear up the contracts for the cross-city road and prepared to release the project’s paperwork.

Mr Abbott declared in a statement that, despite accepting the election result, he would do whatever he could to save the road, which the commonwealth has vowed to spend up to $3bn helping to build.

Declaring his support for defeated Liberal premier Denis Napthine, Mr Abbott said: “I share his commitment to the East West Link and I am determined to do what I can to ensure this vital ­national infrastructure project proceeds to completion.’’

PDF: The electoral landscape

The Coalition’s emphatic election loss led to bitter Liberal Party recriminations as a succession of state ministers blamed the Abbott government and its ministers for the loss. Labor is due to pick up 47 seats, the Coalition 37 and the Greens one, with one independent. Two seats were in doubt. The two-party-preferred swing was at least 3 per cent, with the final number to be known after pre-poll votes have been counted.

Federal parliamentary secretary Josh Frydenberg, a Victorian MP, rejected suggestions the Abbott government was to blame. “We won’t cop that,” he said. “The polls have been stubbornly against the Coalition for three years.”

However, the Napthine government held a narrow lead on two-party-preferred terms in a Newspoll taken in May-June last year, just months before the election of the Abbott government.

Labor won seven key seats in an election that will deliver at least one Greens MP to the lower house and threatens to leave the Nationals without party status, which would strip the party of resources such as chauffeur-driven cars, ­offices and paid staff. The ­Coalition agreement is also in doubt.

The upper house is expected to be a nightmare for the new ­government, with up to six micro parties tipped to have the balance of power.

Dr Napthine has quit the ­leadership and is expected to be replaced this week by either outgoing planning minister Matthew Guy or outgoing treasurer Michael O’Brien.

Labor is facing possible bloodshed over its cabinet, with moves to dump frontbencher Danielle Green as part of a reshuffle that will include the loss of former planning spokesman Brian Tee from the upper house.

Mr Andrews yesterday visited Treasury officials to discuss the state’s finances and prepare the way for the scrapping of the East West Link, despite a potential $1.1bn compensation fee for the companies that won the right to build it under the Coalition. He also accepted the resignation of top bureaucrat Andrew Tongue, who will be replaced by former NSW premier Barry O’Farrell’s director-general of Premier and Cabinet Chris Eccles.

In a break from convention, Mr Andrews is planning to make public all documents relating to the East West Link contract, despite concerns about confidentiality. He described it as a “secretive, rushed project’’.

TALLY ROOM: Victorian election results

Mr Andrews will recall parliament next month to introduce legislation to create his “back to work’’ plan, which includes a $100 million fund to provide payroll tax relief to companies hiring unemployed youth and retrenched workers into full-time work and the creation of an independent body of business and industry leaders to advise on the spending of $500m to create jobs and investment. The Labor leader also flagged closer relations with the NSW and South Australian governments on issues such as defence industries.

Outgoing Coalition attorney-general Robert Clark said there were clear federal factors in the election, resulting in large part from the tough federal budget.

“It’s taken attention, it’s made it difficult for us to get across to Victorians all the benefits — in particular our most recent budget,’’ Mr Clark said.

Former premier Jeff Kennett also took a swipe at the federal budget, adding that the forced resignation of former premier Ted Baillieu had sucked some life out of the government.

Greens leader Greg Barber said his party’s victory in the lower house seat of Melbourne would be just the beginning for the minor party. He said the Greens’ co-operation with Labor in the upper house would depend on the government’s willingness to address issues such as climate change, public transport and transparency.

The Greens are still a chance of winning another lower house seat and the Nationals are still fighting to hold on to the Latrobe Valley electorate of Morwell.