The Allan Labor Government's latest funding proposal for the Suburban Rail Loop (SRL) confirms what Victorians have long feared: This is a desperate attempt by a debt-addicted government to fund a project it simply cannot afford.
Shadow Minister for Major Projects, Evan Mullholland, said Labor's so-called 'value capture' plan, which will divert stamp duty and other taxes from within SRL precincts, is nothing more than a sneaky revenue grab dressed up as transport policy.
"This latest loopy idea is evidence the government's 'value capture' funding model is as hollow as the state treasury is empty," Mr Mulholland said.
"No wonder Infrastructure Australia and the Commonwealth Government raised serious concerns about Labor's modelling.
"To propose hypothecating stamp duty and other tax revenue under the guise of 'value capture' proves this isn't value capture at all. It's general revenue that will deepen Victoria's already perilous debt position."
Jacinta Allan has told Victorians for years that a third of the $34 billion for SRL East will come from value capture, instead now even more of the states third will come from general revenue, leaving essential services on the chopping block.
This plan was never mentioned in the business and investment case for SRL East. Victorians are being asked to foot the bill for a project that remains shrouded in secrecy.
"The Victorian public deserves transparency and responsible financial management, not a government that invents new ways to raid the state's tax base to fund a project it can't deliver," Mr Mulholland said.
"It's time for Labor to come clean on the true cost of the Suburban Rail Loop and stop punishing hard-working Victorians to pay for projects they can't afford and can't manage."
With debt climbing to $194 billion and costing Victorians $29 million a day in interest, and essential services under strain, the Liberals and Nationals are calling on the Allan Labor Government to stop the spin and start delivering fiscal responsibility.
