The long-term lease of the Port of Melbourne to the private sector will fund the development of better infrastructure between Victorian farms and export markets, the Andrews Government has said.
A $200 million Agriculture Infrastructure and Jobs Fund will be established once legislation for the privatisation of the port gets through parliament, the government said on Monday.
State minister for agriculture Jaala Pulford said the new fund will support investment in agricultural infrastructure and supply chains to boost productivity, increase exports and reduce costs.
She said the fund will be available for practical projects and programs that wholly benefit the agriculture sector.
That includes transport, irrigation and energy projects, she explained, as well as skills development programs and market access campaigns.
“The new fund will invest in critical infrastructure,” Pulford said, “providing concrete benefits to the many thousands of hard-working farmers in Western Victoria that depend on this important sector.”
Victorian Farmers Federation president Peter Tuohey welcomed the funding package.
“The Labor Government has listened and delivered on our call for a fair share of the estimated $5 billion in revenue from leasing the port to be re-invested in rural infrastructure,” Tuohey said.
“We’re also expecting the government to announce a further commitment to upgrade and standardise the Mildura rail freight line and its feeders,” he added.
Premier Andrews said the agricultural funding was another reason the Liberals and Nationals should change their mind and support the Delivering Victorian Infrastructure (Port of Melbourne Lease Transaction) Bill 2015, which they are both challenging in parliament.
“Food and fibre is the future of our economy,” Andrews said. “Before the election, we promised that a Labor Government would lease the Port of Melbourne. We will deliver on that promise, to ensure our farmers and regional communities get the support they need.”
This is not the first transport funding package the Andrews Government has tied to the privatisation of the Port of Melbourne.
Funding for Victoria’s level crossing removal program has also been closely tied to the port sale.