Calls for an investigation into the allocation of $2.2 billion in federal funding for a major rail project.
Shadow Infrastructure Minister Bridget McKenzie has written a letter to the auditor general regarding the Victoria Suburban Rail Loop. She is calling for an investigation into the federal government’s $2.2 billion (US$1.5 billion) contribution to the project. The current government had pledged the funding before the election and officially committed the money in the first budget of this term.
The rail project, which is described as the “biggest transformation of public transport in Australian history,” aims to construct a 90-kilometer (56-mile) rail line linking all major train services in Melbourne. Shadow Infrastructure Minister Bridget McKenzie expressed concern about the federal government’s decision to provide a significant contribution to a project that she believes does not have a solid foundation or justification.
She explained to Sky News that she had contacted the Auditor General about the project because she is worried about the potential financial risks it imposes on Commonwealth taxpayers and future governments. She criticized the federal Labor government for approving such a large funding amount without thoroughly evaluating the project’s viability.
The federal government confirmed its multi-billion dollar commitment to the rail project in the October 2022-2023 federal budget. Victorian Premier Jacinta Allan, who served as the Transport Minister at the time, highlighted the federal government’s contribution as the largest to any project in the nation. She announced that the partnership with the federal government had allowed them to begin early works on the Suburban Rail Loop.
However, several groups, including the Grattan Institute and economists, have raised concerns about the project’s cost. A report from the state parliamentary budget office in 2022 warned that the cost of the Suburban Rail Loop could exceed $2 billion (US$137 billion). Despite these concerns, the Victorian government proceeded with awarding a $3.6 billion contract for tunnelling as part of the project’s eastern section.
The Suburban Rail Loop project is expected to generate 8,000 direct jobs and introduce six new underground stations between Cheltenham and Box Hill, reducing travel times. The tunnelling machines will be powered by renewable energy, minimizing emissions from construction to 20 percent below industry standards. Victoria Premier Jacinta Allan emphasized the project’s potential to reshape the city’s transportation and declared that it was progressing at full speed, with tunnel boring machines expected to be operational by 2026.
