Victorian taxpayers are set to pay the price of yet another Labor major project cost blowout as Premier Allan admits global construction cost increases have impacted the Suburban Rail Loop East early works package.
In the same breath, the Premier refused to detail how much the $30-34 billion SRL East will blow out by, given the cost is based on outdated 2021 construction prices.
The Premier also refused to answer what information has been handed to Infrastructure Australia regarding its concerns about cost increases and value capture.
Shadow Minister for Major Projects, Evan Mulholland, condemned the Premier's evasion tactics, and called on the government to release a revised and transparent cost estimate for SRL East, including all operationalisation expenses.
"Today, Victorians witnessed a Premier completely out of her depth, desperately trying to obfuscate and avoid accountability for her government's disastrous handling of major projects," Mr. Mulholland said.
"Premier Allan grudgingly acknowledged the global construction cost increases since 2021 when questioned about early works package cost issues yet conveniently refused to address the glaring implications for the $30-34 billion SRL East. This figure, derived from a 2021 business and investment case, is now demonstrably obsolete, with costs having surged by over 20 per cent in the intervening years.
"The Premier's deliberate silence on what a more than 20 per cent increase means for the SRL East budget, is a blatant attempt to hide the true financial black hole this project is becoming."
A freedom of information request (attached) released by the Liberals and Nationals, notes Interdepartmental Committee Meeting minutes from 21 June last year, where a committee of the most senior bureaucrats across government raised concern about cost issues and attempted to redact it out.
"If senior bureaucrats at the top levels of government are flagging cost issues, then then Jacinta Allan and Labor need to take note and get out of this project before it's too late," Mr Mulholland said.
"In an astonishing admission, Premier Allan conceded that the $30-34 billion price tag does not include the substantial funding required to operationalise the SRL, similar to the Metro Tunnel. This is a staggering oversight that guarantees the project will go over budget. It's akin to building a house and forgetting to factor in the cost of electricity and water - completely irresponsible.
"Every Victorian taxpayer should be outraged. The Premier's evasiveness today confirms what we have long suspected: the SRL is a runaway train of debt which means Victorians will be paying the price for generations to come.
"Labor can't manage money, can't manage major projects and Victorians are paying the price."
