Secret $888m sweetener: Leaked letter exposes Labor’s massive Metro payout offer

The Allan government has offered the companies building the already-delayed and over-budget Metro Tunnel subway “additional payments” worth up to $888 million, as it tries to ensure passengers can catch a train on the new rail line by the end of 2025.

A leaked legal letter, obtained by The Age, outlines a series of financial incentives to the Cross Yarra Partnership construction consortium to secure the completion of the train line under central Melbourne.

The legal document, with each page marked “strictly confidential”, is dated June 22 this year. That was two days after an auditor-general’s report tabled in state parliament found the Metro project was running over budget and behind its originally contracted opening date of September 2024.

The Metro Tunnel is a nine-kilometre underground project that will transform Melbourne’s rail network, with five new stations allowing train access to Parkville for the first time, and linking South Yarra to North Melbourne in just 11 minutes.

It will also free up crucial space in the City Loop to allow more trains to run on other lines.

How many times have we heard this project will enable more trains and the more trains never comes? We have heard this with V/Line and Metro Trains. It never happens.

This Metro Tunnel should never take 6 years to build or is it 7?

This project has gone on way longer than it should have and has taken longer than the Perth airport rail line build which is 2 x the distance.

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