Victorian Labor MPs have privately expressed frustration and concern over Premier Jacinta Allan’s vow to “double down” on the $125 billion Suburban Rail Loop, warning if federal Labor lose the election the state government will be left on the hook for billions.
Federal Liberal frontbencher Dan Tehan sparked internal ructions last week when he said he would introduce a petition in federal parliament urging the Albanese government to abandon its support for the rail loop, amid a federal Coalition push to dump financial support for the project.
The federal government has committed just $2.2 billion for the first stage of the project, the $34.5 billion SRL East, but the state government expects the federal government to contribute at least $11.5 billion, with another third expected to come from value capture taxes.
Victoria’s finances are under scrutiny after the state’s auditor-general on Friday warned that general government sector debt was forecast to pass $228 billion by 2028, and independent economist Saul Eslake published an in-depth analysis of the economy that concluded, among other things, that household income had dropped below that of Tasmania for the first time.
A major chunk of the state’s debt comes via Victoria’s infrastructure program, including road projects the $10.2 billion West Gate Tunnel and the $26 billion North East Link, and rail projects the $15.6 billion Melbourne Metro and the SRL.
