Despite releasing $2 billion for Melbourne's Suburban Rail Loop, the Commonwealth has not committed to further funding, raising concerns about a potential multi-billion-dollar budget shortfall. The decision leaves questions over the viability of the Victorian government's signature rail project.
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00:00It's a $34 billion train line with an identity problem.
00:07It's Australia's largest housing project.
00:09It is not a housing project.
00:11And cash flow issues.
00:13Jacinta Allen needs to come clean on where the other money is coming from.
00:17The first stage of the suburban rail loop will, in a decade or so,
00:21connect Melbourne's east from Cheltenham to Box Hill.
00:24Today's a great day for both the suburban rail loop and for Victorians.
00:30Three years after it was promised...
00:32Federal Labor will contribute an initial contribution of $2.2 billion to this project.
00:39Federal funding is now finally flowing.
00:42On the basis of very specific things that it will be going towards
00:46and so I have now signed that off and the Victorian Government,
00:49I'm sure, will be receiving the news of that now as we speak.
00:52It's going to go to those important things like the work that needs to be done
00:56on ground conditions, on utilities and land acquisition.
00:59It's a small fraction of the $11 billion Victorian needs the Commonwealth to chip in.
01:05There are still some hurdles, particularly the costings around value capture.
01:09The state intends to scrape another $11 billion from so-called value capture
01:14in the form of fees, taxes and developer charges.
01:18It's not surprising to me that the Federal Government is very unconvinced by this
01:23because they're very unconvincing notions.
01:26They won't raise anywhere near enough money.
01:28The Premier remains adamant the state has a project partner in Federal Labor.
01:33But she's quick to admit the same wasn't the case with the last Coalition Government.
01:37It leaves SRL funding far from guaranteed as a Federal election approaches.