The consortium of developers contracted to build Victoria’s East West Link toll road has begun legal proceedings against the Victorian government after the premier, Daniel Andrews, scrapped the project.
The legal action arose because the government has suspended – rather than terminated – the project and can technically order the developers to restart work at any time.
Although that is unlikely, the consortium, East West Connect, is still contractually obliged to get the environment management plan approved, prompting the legal action.
The action before the Victorian civil and administrative tribunal (Vcat) demands the government approve the environment plan.
A statement filed to the tribunal by a lawyer representing East West Connect, Tim Power, said: “Our client has not been given any reasons as to why the construction environmental management plan has not been approved by the minister for planning, nor whether the minister has any concerns or reservations about the plan”.
An East West Connect spokesman said the legal action would not affect discussions with government about how to proceed now that the project has been suspended.
“The action in Vcat is due to the contractual requirement for the consortium to be ready, willing and able to perform if the suspension is lifted,” he said.
The previous Napthine government signed the contracts for the controversial project in September, just two months before the state election. During the campaign Labor promised to abandon the toll road.
Now the government may have to pay East West Connect millions in compensation for abandoning the project.
Andrews said on Wednesday he had not ruled out introducing legislation to avoid paying the compensation.
“I would not rule out using legislative means to protect the interests of the state,” he said. “I didn’t sign the contract. Victorians didn’t vote for this project. This project is a dog. It doesn’t stack up.”
The acting planning minister, Robin Scott, and the treasurer, Tim Pallas, have been contacted for comment.
Pallas told the ABC on Wednesday the legal action was misconceived.
“There is no project, we’ve been pretty clear about that,” he said. “The consortium themselves have told their subcontractors that there is no work proceeding and we’re pretty clear that this is just part of the cut and thrust of legal positioning.
“They’ve got to stop these legal manoeuvrings because they are counterproductive to actually getting a negotiated settlement, and if they don’t want a negotiated settlement, well, they better tell us.”
