Ben Carroll, Victoria's new premier, has not ruled out redirecting billions of dollars from the Suburban Rail Loop (SRL) to other projects, and is considering 'sensible changes' to laws that would enshrine the right to work from home two days a week.
Carroll open to redirecting SRL funds
Speaking at the Essendon tram depot on Thursday, Carroll did not dispute reports that he would order a review into the costly 90km public transport project, which would also consider whether billions of dollars worth of construction contracts already signed could be redirected.
“I’ve got no announcements to make today,” he said. “What I can say is that every dollar of my government will be invested where it delivers the greatest value for Victorians – and it will be invested responsibly, transparently and respectfully.”
Federal and state funding
Carroll, who spoke to Anthony Albanese for the first time as premier on Wednesday, said he did not discuss with the prime minister the prospect of diverting federal funds into other projects. Albanese said on ABC News Breakfast on Thursday that he would work constructively with the Victorian government “to make sure that the interests of Victorians are looked after”. The federal government has allocated $6bn to the SRL, including $3.8bn in May’s federal budget. The state government has committed about $11.8bn for the first stage of the loop, known as SRL East, and signed $14.5bn worth of contracts. Two tunnel-boring machines are in the ground in Burwood, expected to begin tunnelling to Glen Waverley in four to six weeks.
The state opposition leader, Jess Wilson, has said if the Coalition is elected in November, she will pause and review the project. Last year, the opposition’s transport infrastructure spokesperson, Matthew Guy, said once the “holes in the ground and the boring machines have started” it would likely have to proceed.
Criticism and cost analysis
The SRL was first promised by Daniel Andrews ahead of the 2018 election and has been credited with securing eastern seats for Labor. But it has faced repeated criticism over its origins, business case and total cost. The independent Parliamentary Budget Office released a costing on Thursday, commissioned by Libertarian MP David Limbrick, showing that cancelling the project now would improve the state’s budget position by $21bn over the decade, though the government would have to spend $1.8bn in contract termination fees. “Nobody in my electorate is pining for a train trip from Cheltenham to Box Hill,” said Limbrick. “These figures show that it is absolutely not too late for Mr Carroll to take a new direction with the SRL. Continuing it for this reason amounts to a sunk-cost fallacy.”
Changes to work-from-home legislation
Carroll also shifted away from another signature policy of Jacinta Allan by flagging “sensible changes” to her bill that legislates the right to work from home two days a week for those who can “reasonably” do so. The bill is expected to pass the lower house by the end of today before moving to the upper house, where it will be debated during the next parliamentary sitting week beginning 11 August.
