Article: $5b necessary to end Melbourne gridlock

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$5b necessary to end Melbourne gridlock

$5b necessary to end Melbourne gridlock
Article from: Herald Sun

Geraldine Mitchell and Mary Bolling

November 07, 2008 12:00am

THE Brumby Government's plan to end the gridlock on our roads and trains could be under threat unless the Federal Government commits at least $5 billion to major infrastructure projects.

Treasurer John Lenders yesterday warned its multi-billion-dollar transport blueprint, due to be released at the end of the month, would be downgraded if Victoria missed out on key funds.

"If the Commonwealth does not put money into the state of Victoria, clearly the transport plan will be a smaller plan than it otherwise would be," he said.

"The Commonwealth has an extraordinary opportunity to build on the good work in the state of Victoria to date.

"We have in the last five years spent almost $15 billion on infrastructure. The Commonwealth has put an equivalent to one-fifth extra into that.

"They can make this go a lot further -- it's in their hands."

It comes after Premier John Brumby attacked his federal Labor counterparts, saying Victoria needed a "stronger partnership" with the Rudd Government.

Mr Brumby and Roads Minister Tim Pallas have repeatedly said they want at least a quarter of the $20 billion Building Australia fund put towards the Victorian Transport Plan.

But the Government's ire was raised when Treasurer Wayne Swan said this week the Rudd Government would be forced to make "tough decisions" in relation to state funding.

It came as the latest financial figures revealed the global financial crisis had blown a $40 billion hole in the federal Budget.

Peak rail union boss Trevor Dobbyn agreed federal funding was vital, but said the Government should still proceed as planned without it.

"We're the only country in the developed world where there's no federal funding for urban public transport, and that can't be sustained," the Rail, Tram and Bus Union state secretary said.

"These projects are vital to address patronage increases.

"We need those 20 new trains, and the system needs major infrastructure works to deliver more capacity. Without that cash we'll be looking at less jobs and a public transport system that doesn't work."

RACV public policy general manager Brian Negus said it was imperative the transport plan went ahead.

"Scaling down is the wrong approach. The Government should be scaling up the scope of this plan," he said.

"Funding is obviously a constraint, but equally the Government needs to be very conscious that one way to turn the economy around is to invest in infrastructure, which adds to productivity of workers, as well as creates jobs."

The Brumby Government's transport plan will address recommendations in international transport expert Sir Rod Eddington's East-West study, but will also focus on other projects.

Sir Rod's report found Melbourne was headed for transport chaos unless a multi-billion-dollar investment were made in the development of infrastructure such as road and rail tunnels, rail line extensions and a plan to keep trucks from clogging city streets.

Metlink spokeswoman Michelle Herbert said there had never been a more critical time for investment in transport.

"The Eddington Report has laid the foundations for the future of Melbourne's public transport network. It's time those projects were actioned and given adequate funding," she said.