Anthony Albanese’s government is feuding with Premier Jacinta Allan over billions in infrastructure spending for big ticket projects to sway voters who are switching off Labor, as the cash-strapped state holds out for extra Suburban Rail Loop funding.
The stand-off over project funding has prompted Victorian federal MPs alarmed by the 17 per cent swing against Allan in the Werribee byelection to demand she cease “blackmailing” the prime minister for extra money for her flagship project.
Victorian federal MPs and ministers who fear the Allan government’s unpopularity will fuel a federal election rout in Melbourne are pushing for the state to agree to different transport projects to counter Opposition Leader Peter Dutton.
Buoyed by the byelection results, Dutton said on Monday that he is determined to reverse Coalition fortunes in a state where about six seats could prove decisive in a deadlocked contest between the major parties.
Four sources briefed on tense negotiations between the prime minister, Infrastructure Minister Catherine King and Allan said the Victorians were refusing to sign on to a broader package of projects unless the federal money included a top-up for the $35 billion first stage of the contentious rail loop.
The sources – from the state and federal governments, none of whom could speak publicly about confidential talks – said Allan was standing firm on the SRL in the face of federal reluctance.
It is expected that a previous $2.2 billion SRL allocation from federal Labor will soon flow into state coffers, but federal officials are resistant to Allan’s demands for billions more. The stand-off is delaying a broader deal that could free up funds for more immediate projects such as an airport rail and upgrades to the Western Highway and other roads, which federal Labor MPs view as crucial in a tightening contest with Liberals.
King’s office declined to comment and Allan’s office released a statement saying only: “The premier is continuing to discuss Victoria getting its fair share of infrastructure funding for all projects – including the Suburban Rail Loop – with the Prime Minister.”
The Age
Well done Jacinta getting money out of the feds. This is an important prophecy for Melbourne and it should be fed funded.