Victoria’s financial watchdog has been asked to probe “secrecy and misleading reporting” in the state budget, amid concerns about hidden road and rail cost blowouts.
In a letter to Auditor-General Dr Andrew Greaves, Opposition Leader John Pesutto says budget papers include a $33.3bn pool of funding referred to as “decisions made but not yet allocated”.
Mr Pesutto says putting money into so-called “contingencies”, despite decisions already being made, was shielding major project funding from proper scrutiny.
He took aim at the $34.5bn Suburban Rail Loop East, a 26km underground line planned between Cheltenham and Box Hill that has funding estimates listed as “to be confirmed”.
An artist’s concept of a Suburban Rail Loop train Source: Suburban Rail Loop Authority
Mr Pesutto says a pattern of obscuring costs has recently emerged, pointing to an investigation by Dr Greaves into the Commonwealth Games fiasco, which exposed how the Government hid a $1bn funding blowout in “contingencies” before the event was axed.
“The Government engaged in this practice to suppress the truth about blowouts in the cost of the Commonwealth Games,” he writes.
“It now appears to be doing the same thing regarding the SRL.”
The concern about financial secrecy comes after the government refused to reveal the cost of its latest extension of Metro Trains’ rail contract.
An initial 7 year deal, worth $6.3bn and inked in 2017, is now set to expire in 2027 — well past the next state election and when the $14bn Metro Tunnel opens — after a second 18-month extension was suddenly announced on Friday.
Rail industry figures say concerns about potential delays opening the tunnel, scheduled to take passengers next year, may have been one motivation to push out the contract.
A government spokesman said the latest 18-month extension will “ensure we can get the most competitive bids for the next contract and deliver the best outcomes for passengers and Victorian taxpayers,” but did not answer questions about the cost to taxpayers of the current extension.
Opposition Leader John Pesutto has accused the government of shielding major project funding from proper scrutiny. Picture: NewsWire
The extension announcement was made just days after Public Transport Minister Gabrielle Williams appeared before a parliamentary inquiry on budget estimates.
In response to concerns about the budget, a government spokesman said holding cash in a central pool was standard practice but would not reveal what projects were included.
“Governments routinely centrally hold funding in contingency pending allocation to departments upon the achievement of program milestones, particularly for capital projects and major reforms,” he said.
Herald Sun