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Newcastle Herald
Newcastle Herald

Regional Vic hospitals cash promise dented

Nationals leader Peter Walsh has blamed the Labor government for the health funding promise bungle. (Alex Murray/AAP PHOTOS)

An $8 billion regional health pitch tied to the proposed shelving of Melbourne's Suburban Rail Loop has been dented, with the Victorian coalition conceding less cash could be available.

After flagging plans to shelve Labor's $35 billion Cheltenham to Box Hill rail line if victorious in November, the state coalition announced $8b from the project would go towards upgrading and building regional hospitals.

"There was $35 billion locked into one city project, but under a Liberal and Nationals government $8 billion of this will be redirected to our regional hospitals to address our health crisis," Nationals leader Peter Walsh said in a statement on August 17.

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Mr Walsh has now clarified the $8b commitment, accusing Labor of not revealing "other sources of funding" before his announcement.

"The $8 billion was 25 per cent of what the government was saying at the time the Cheltenham to Box Hill line would cost," he told The Age.

But Labor's SRL business and investment case, released in August 2021, sets out that the Victorian government would seek a matching contribution from the Commonwealth, with the other third of funding to come from "value capture" sources.

Despite noting in the May state budget that $11.8b had been announced for the SRL's 26-kilometre first stage, the Andrews Labor government has so far allocated just $2.3b for early and initial works.

Health Minister Mary-Anne Thomas has leapt on Mr Walsh's comments, declaring the coalition had been caught out.

"The Liberal and National party leaders Matthew Guy and Peter Walsh need to explain their cruel hoax," she said.

AAP has contacted Mr Walsh for further comment.

It comes after opposition transport spokesman Matt Bach left the door ajar for signed SRL contracts to be amended, should the coalition regain power.

Opposition Leader Matthew Guy has vowed not to rip up already signed contracts, but Mr Bach said he would be open to talks with contractors.

"It's possible that groups who have already been contracted may come forward to say, 'look, there are other infrastructure priorities' ... and that they may wish to have terms of contracts altered," he told Sky News.

"Now, if that's the case, well of course I would have those discussions."

Australian Associated Press

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