Shadow Infrastructure Minister Bridget McKenzie has written to the auditor general expressing concern about the federal government’s $2.2 billion (US$1.5 billion) contribution to the Victorian Suburban Rail Loop. The funding was promised and committed in the first budget of the current government. The project aims to create a 90-kilometer rail line linking major train services in Melbourne.
McKenzie is worried about the federal government agreeing to fund a project that doesn’t appear to be financially viable. As a result, she has urged the auditor general to look into this matter. The federal funding for the rail project was confirmed in the October 2022-2023 budget. However, the significant cost of the project has caused concern among experts and has faced calls to be scrapped.
A report released by the state parliamentary budget office projected that the cost of the Suburban Rail Loop could exceed $2 billion (US$1.37 billion). Despite these concerns, the Victorian government awarded $3.6 billion for tunnelling as part of the eastern section of the project. Additionally, the tunnelling machines will be powered by renewable energy to reduce emissions from construction. The project is expected to create thousands of jobs and decrease travel times through the addition of new underground stations between Cheltenham and Box Hill.
In light of the concerns surrounding the project, McKenzie has persistently pushed for a due diligence process to be conducted on behalf of Commonwealth taxpayers. Victorian Premier Jacinta Allan, however, remains committed to the project, claiming that it will revolutionize public transportation and greatly benefit residents of Melbourne by reducing travel times.