Federal funding of $1.5bn, previously allocated for the construction of Victoria’s East West Link toll road, has been unlocked for use on alternative projects, Scott Morrison has said.
“As treasurer, I want to see projects happen in Victoria and there are a range of projects we can get moving on, so I think it’s time to rule a line under that,” Morrisson told radio 3AW on Wednesday.
He said road infrastructure projects, including the proposed Western Distributor and the Melbourne Metro public transport proposal, would be potential uses for the money should the federal government agree they were worthwhile.
Since Malcolm Turnbull became prime minister in September, the federal government has indicated it would be more willing to discuss how the funding could be used by Victoria.
But Morrison’s comments on Wednesday are the first time it has confirmed the $1.5bn could be used for alternative projects.
Former prime minister Tony Abbott said the money would be kept in a “locked box” and made available only to the next Victorian government willing to build the East West Link.
The Victorian premier, Daniel Andrews, dumped the East West Link toll road after being elected in November last year, describing it as a “dud project” that did not “stack up”.
The former Liberal government under Denis Napthine had championed the project as essential to easing congestion over the Bolte Bridge and along the western end of the Eastern freeway.
The Victorian treasurer, Tim Pallas, said on Wednesday the freeing up of the funding was “great news”. The business case for building the Melbourne Metro project was expected to be ready by early next year, he said, at which point it would be presented to the federal government.
“The Commonwealth have now confirmed that the money will stay in Victoria for Victorian projects, projects that will be agreed cooperatively, new projects to deal with the congestion that we confront now on our road and our rail networks,” he said.
“I’m pleased to see a change of attitude and approach coming out of Canberra, out of the prime minister and the federal treasurer. It’s good that the game-playing has come to an end, and we can move forward building infrastructure for the future.”
Turnbull has said the federal government will not discriminate against public transport projects – a clear shift from Abbott, who had insisted the Commonwealth would focus on road construction and would not provide funding for urban rail.
Turnbull cemented the shift with an announcement on 11 October that the government would provide $95m towards the second stage of the Gold Coast light rail project in Queensland.
