Infrastructure minister Darren Chester has slammed Victoria’s regional rail plan, saying it relies on federal money the state is not entitled to spend.
The Andrews Government announced major upgrades to the regional rail network as part of the Victorian Budget on May 2.
But the plan relies on $1.45 billion from the Federal Government’s discontinued Asset Recycling Initiative, which Victoria believes it is entitled to for selling the Port of Melbourne last year.
The Turnbull Government is only willing to pay half that amount, however, arguing the state missed the June 30, 2016 deadline it imposed for deals to be finalised under the scheme.
The debate is far from over, but Chester took to ABC Radio in Victoria on April 4 to criticise Premier Andrews.
“[State and federal treasurers] haven’t been able to reach agreement on the $1.4 billion which Victoria claims it’s owed, yet we have the premier out there making announcements with money he doesn’t have,” Chester said.
“I find it a bit odd to have a state government announcing federal government funding even though [Andrews] knows it is in dispute.”
Chester also highlighted the plan’s 100% reliance on Asset Recycling cash, saying it showed the state was not willing to put “a single cent, not one dollar” of its own money towards regional railways.
The federal infrastructure minister seemed to suggest Premier Andrews is being unnecessarily – and perhaps intentionally – difficult over the project.
“The Prime Minister has made it clear he is keen to work with states, right across Australia, on passenger rail projects,” Chester said.
“You’d think in that circumstance that the State Government would prepare a plan, a business case, and dedicate some funding for it and go to the Commonwealth and say, ‘let’s work in partnership on this project’.
“That hasn’t happened. I haven’t received a plan. I haven’t received a business case and all I’ve received is one letter from the Premier demanding $1.4 billion for us to fund all of his regional rail upgrades, without a cent from the State Government.”