Wednesday, 2 April 2025

Motions

Suburban Rail Loop

Debate resumed.

Michael GALEA (South-Eastern Metropolitan) (12:53): I rise with the harmonious tones of the Assembly bells in the background to conclude some remarks around the Suburban Rail Loop, which, as I was discussing prior to the question time interruption to proceedings, is a very, very important project and one, of course –

A member interjected.

Michael GALEA: I have got 30 minutes. Twenty now – I am losing time already. It is a very important project not just for south-east and eastern Melbourne but for the entirety of Melbourne, including for university students in Gippsland, for example, to access Monash University and to access Deakin University and of course for students in my region of the south-east – the outer lying, in my case, south-east suburbs down the Frankston, the Cranbourne and Pakenham lines – to be able to access those employment and especially those educational opportunities at both Monash and Deakin in particular. It is disappointing that my colleague Mrs Hermans, a fellow representative of the south-east, does not support those improved transport options for constituents that we represent in the region. It is disappointing indeed that in other states Liberal parties are prepared to support public transport projects but we do not have that here. We saw no federal funding for the Metro Tunnel under the previous federal Liberal government and we have seen a campaign of opposition by the state and federal Liberal parties against the Suburban Rail Loop, because fundamentally they do not support public transport projects. They also do not support providing housing for millennials and gen Zs, and that is what these activity centres around Suburban Rail Loop will also provide. I am sure we will have plenty of opportunity to discuss that after lunch as well.

I do reflect briefly again on my remarks just before the break and how disappointing it is that a supposedly progressive party in the Greens, who supposedly advocate for a mode shift away from cars to public transport, refuse to even say anything of support for what is one of Australia’s most significant transport infrastructure projects in the Suburban Rail Loop. They are refusing to even support a project, as I say, that will take 600,000 cars off the road. I am not sure why that is. Maybe it is because it is not an inner-city Suburban Rail Loop from East Melbourne to Footscray – maybe that is the project they would get behind. If it went through Richmond, which is already extremely well served by existing train lines – Mrs McArthur is not here, but she would appreciate it is obviously well served by the tram tracks.

This Suburban Rail Loop is actually about providing the same level of connectivity for people in middle suburban Melbourne and for people in outer suburban Melbourne through those integrated connections at Southland station, at Clayton station, at Glen Waverley and at Box Hill in the first stage of the project for SRL East. Those are the transport options that this project is unlocking. It is remarkable that a supposedly progressive party that supposedly advocates for public transport is refusing to get behind, even in a general sense, a project such as the Suburban Rail Loop.

I noticed in the constituency questions we just had that Mr Puglielli – whose electorate will benefit from the Suburban Rail Loop at Box Hill, Glen Waverley and Deakin – lamented the fact that there is no train to Doncaster. The next stage, or one of the future stages, of the Suburban Rail Loop is for a rail link to Doncaster. Again, there was still no support of the Suburban Rail Loop; it was very disappointing on the part of the Greens. Clearly it is only the Labor Party in this state who is actually prepared to invest in the long-term infrastructure needs of this state.

We have seen some of the fastest growing population increases across the country. Business investment is at record levels, and we have seen that business investment outstrip every other state consistently now. We are continuing to be the hub of major events in Melbourne – in central Melbourne and increasingly beyond as well, in the regions and in the outer suburbs. Whether it is local community events or festivals, we have seen many such huge celebrations just in the last week for wonderful Eid Mubarak as well. We have seen Eid celebrations at the start of this week in the south-east, in some cases with thousands of people attending these events. Major events of worldwide significance have been celebrated right across the state of Victoria as well. With a growing population – a population that, as we like to say, will be the size of London by the 2050s – you need to provide better transport options for that, and that includes orbital options.

Many of the same pundits from some newspapers and from certain far-left political parties were for many years calling for this, but it takes a Labor government to actually bring action and to actually deliver it. That is what this government is doing, and now that we are, we see some support fall away, which is quite sad to see, because this is not a quick fix. It is not a short-term political-thinking exercise; it is a long-term strategic vision for Victoria, for the way in which we move around our state and for the way in which we live, providing, so essentially, those housing options for future generations of Victorians as well. You should have a choice to live in the wonderful outer suburbs or to live in the inner city or in the regions. You should not just have that choice made for you by a bunch of stuffy old Liberal members who are opposed to all sorts of development in any sort of radius within 30 k’s of the CBD. We do need to build a future Victoria for all Victorians, and the Suburban Rail Loop is a very important part of that.

Sitting suspended 12:59 pm until 2:02 pm.

Gaelle BROAD (Northern Victoria) (14:02): I am pleased to be able to speak about this motion put forward by Mr Mulholland, which is focused on the Suburban Rail Loop. I note that Ms Terpstra in her contribution called it a stunt. But I certainly think it is anything but a stunt, because this motion highlights updated information that we have. Infrastructure Australia’s recent report did raise serious concerns about the Suburban Rail Loop project. Certainly with the Commonwealth budget recently we saw a big $9.5 billion that was missing there that the government had their fingers crossed hoping for. In light of this new information, this motion requests the Auditor-General update their 2022 report to examine the SRL East project.

When you consider the role of the Auditor-General, it is very important. When you look at their website, they are ‘an independent officer of the Victorian Parliament’ and they are ‘supported by around 185 staff’. It says:

We provide assurance to Parliament and the Victorian community about how effectively public sector agencies are providing services and using public money.

So I would say this is certainly not a stunt; this is good governance. Assurances are exactly what we need here, because the Suburban Rail Loop, as Ms Terpstra pointed out, went to two elections – two elections. People voted for it, so the government is saying they are committed to it. Well, that did not stop the Premier cancelling the Commonwealth Games when she was Minister for Commonwealth Games Delivery. That was also promised in the lead-up to the 2022 state election, but very promptly cancelled afterwards.

The Parliamentary Budget Office have looked into the Suburban Rail Loop. They have estimated that the project is going to cost in excess of $200 billion. The Victorian Auditor-General report that they have done on this project did find that it will cost Melburnians more than it benefits them. They found a lack of business case, very little transparency and no transport agencies involved in the original plans.

The Age today reported:

Infrastructure Australia last month warned the Albanese government against putting more Commonwealth cash towards SRL East until it was re-costed and more information was provided about how the state proposed to fund it. The Victorian government says one-third would be funded through unspecified value capture.

Federal Labor’s $2.2 billion commitment to the SRL has been restricted to funding “tangible elements” that could provide benefits even if the project does not go ahead.

Certainly there are lots of question marks still over this project. Value capture – what is that? How are you going to collect that? How is this project going to be funded? It is interesting when you look at the annual reports of the Suburban Rail Loop Authority, in 2023–24 employee expenses were nearly $58 million – 102 subexecutives on an average salary income of $322,000 every year. The money going into this project from just the smallest elements is extraordinary. We were told by this government, ‘No, can’t go ahead with the Commonwealth Games. Too expensive, costs too much. Had to cancel it,’ and they have wasted nearly $600 million so now we can watch another country host the games. We know this government love headlines. They love making big promises in the lead-up to elections, like the rollout of the childcare centres, which has now been pushed back; like the legacy projects that were talked about with the Commonwealth Games, which have been pushed back; like the housing projects that have been promised and have now been pushed back; like the new hospitals in different locations, which have been promised and now pushed back; like the fast rail that was promised to the regions – with free wi-fi, I might add. The Premier does need to catch the train to Bendigo – I do – and I can tell you that there are often replacement coaches in operation, services are packed I know in different locations and there is very infrequent operation.

I have mentioned it before, but in the state budget this government allocates about 13 per cent to regional infrastructure when we have a population of 25 per cent that calls regional Victoria home. The continued focus of this government on city-based projects is extraordinary. I know that I have certainly raised the need for public transport in regional areas in this house very often. I know in the Premier’s own seat in Strathfieldsaye we had a local there who raised a petition because of the lack of bus services in Strathfieldsaye, which is just a very short drive from Bendigo, less than 10 minutes. Nearby in Marong, again there is a lack of bus services, and it is a rapidly growing suburb; it is highly residential now. But the Premier, although she is based in regional Victoria, seems to be ignoring the transport needs of regional Victoria and just continues to sign us up to another city-based project, despite there being big questions, I might add, over CFMEU involvement and the escalating costs that we are seeing on major projects.

The coming state budget is a chance for the government to pause the Suburban Rail Loop and get the state back on track – excuse the pun – but also to consider the infrastructure needs of the whole state, not just Melbourne. Victoria needs to become a state of cities, not a city-state. I know Ms Terpstra referred earlier to the SRL being on time and on budget. We heard very similar sentiments before the Commonwealth Games were cancelled. I know I had Senator Bridget McKenzie in Bendigo, and we raised questions in April 2023 ahead of the cancellation of the games because we were concerned who would be holding the bill for the games. Let me just say:

Deputy Premier and Minister for Commonwealth Games Delivery –

I am quoting from the Bendigo Times of 28 April 2023 –

… Jacinta Allan, said there was no truth of budget concerns or timeframe issues.

“We are making great progress with regional communities on the delivery of the 2026 Commonwealth Games …

“The Andrews Labor Government has grabbed with both hands the opportunity to have regional Victoria be the home of the Games, unlike the Liberal and Nationals.

…

Ms Allan said the Government is working with communities to produce a Commonwealth Games legacy that will last.

“We want to take an investment approach with our regional communities,” she said. “Which is why we are partnering with councils and communities across the state to host the games.

“This will leave a lasting legacy with $3 billion of ongoing investment into the regional communities to go along with the job opportunities and the chance to showcase regional Vic on the international stage.”

That is what we heard from the Minister for Commonwealth Games Delivery just a few short months before the games were cancelled. And that may explain –

Jacinta Ermacora: On a point of order, Acting President, I thought the topic was the SRL – relevance.

The ACTING PRESIDENT (Michael Galea): There have been some prior rulings on relevance in this debate. I will ask Mrs Broad to come back to the motion at hand.

Gaelle BROAD: But I think this raises the question. We get assurances now from this government, ‘All is fine. All is well. The Suburban Rail Loop should go ahead.’ But let me say we have a state debt heading towards $188 billion. By 2027–28 we are facing interest repayments of $26 million every single day. Yes, we support public transport, but we also support good management of taxpayer money. When you cannot even answer how this project will be funded, then I think we have valid questions to ask, and that is why this motion is so important, and we ask the chamber to support it.

This week we are seeing another tax being proposed by this government, the 60th new tax, the emergency services levy. Why? Because they keep going ahead with projects like the Suburban Rail Loop and they need to find extra money. In this case it is an extra $2 billion over the next three years that they are trying to raise from households, from businesses and from primary producers, who will be carrying a very heavy burden if this tax goes ahead. We certainly oppose that tax. We have had enough. The Victorian people have had enough. They are struggling to pay the bills, and yet this government wants to sign them up – well, they have already spent billions of dollars – and want to continue to sign them up. I say there is no light at the end of this tunnel.

Infrastructure Australia has recommended an exit strategy, and I would say that the Premier, before any further contracts are signed, perhaps needs to consider her own exit strategy. Because Victorians do not – (Time expired)

John BERGER (Southern Metropolitan) (14:12): I rise to speak on the motion on the Suburban Rail Loop from my colleague opposite Mr Mulholland. This motion is short and sharp, so I imagine it will give our side of the chamber wide latitude to talk about the important work the Allan Labor government is getting on with in this space. First, the motion notes the recent Infrastructure Australia report which discusses the Suburban Rail Loop East project. This part of the project will massively benefit my community of Southern Metro, and I was pleased to have the chance to visit parts of it last week with my colleagues in this chamber and the other. The second part of this motion discusses the federal budget and the money needed to deliver the SRL East project. And thirdly, it requests that the Auditor-General update their 2022 to report to examine the Suburban Rail Loop East project.

Before I begin I want to say that we build things here. On this side of the chamber we build things. I want to commend the hard work of Minister Shing, who oversees the Suburban Rail Loop’s development, because Minister Shing and the Allan Labor government build things, unlike Peter Dutton and the Liberals. They will cut funding to the Suburban Rail Loop. They will rip up contracts, which is what the state Liberals want to do. They will slash thousands of jobs and they will block 70,000 homes from being built. We know the Suburban Rail Loop will take 600,000 cars off the roads, but Dutton wants these people stuck in traffic. The SRL is a city-changing project being delivered by the Allan Labor government. This side of the chamber, who build things, know that it will cut travel times on the eastern leg down to just 22 minutes between Box Hill and Cheltenham. It links up the commercial and the residential hubs across Melbourne’s eastern suburbs with fast underground turn-up-and-go rail connections. Turn up and go means you do not have to even check the timetable. You can just show up and expect a train will be there shortly to take you to one of the six new stations. The project is expected to take around 600,000 cars off the road, meaning lower emissions and less congestion on the morning rush hour. It will save the economy about half a billion dollars too. Construction on the 26-kilometre twin tunnels is well underway, with tunnel-boring machines going in the ground in a year’s time and trains running by 2035.

Last week I was joined by my colleagues from right across this place and the other, including the hardworking member for Ashwood Matt Fregon, member for North-East Metro Ms Terpstra, my fellow member for Southern Metro Mr Batchelor and Mr Galea from Southern Metro. We visited some of the locations for the upcoming SRL East stations to see their progress so far, and I had the opportunity to see that Burwood SRL site just across the road from Deakin University, where tunnel-boring machines will launch – (Time expired)

Evan MULHOLLAND (Northern Metropolitan) (14:15): Just a brief summing-up for the benefit of the chamber: we have had some good contributions and some interesting contributions that got taken a bit off track, but I want to point out particularly the contribution from the Greens, which the government should agree with, really – it is all about transparency in major projects. One would think we should be supporting that. One would think a government that has racked up $50 billion in project blowouts would actually agree with a decent amount of transparency. There seemed to be some interpretation that the previous Auditor-General’s report was quite glowing of the Suburban Rail Loop, so I just want to read the conclusion from 2022:

The business case DoT and SRLA provided to the government for … SRL program did not support informed investment decisions. The business case only analysed part of the program and did not fully meet DTF’s guidance requirements.

DTF has provided substantial advice to the government on the SRL program since 2019. However, it is yet to complete the assessment of the business case required under its HVHR project assurance framework to give the government confidence in its deliverability.

I want to point out one of the reasons why we respectfully request the Auditor-General have a look at this is the Infrastructure Australia review of the business case, which is actually one of the things that the Auditor-General said was to be confirmed. So given Infrastructure Australia’s scathing assessment of the Suburban Rail Loop, where it found that there were unverified cost assumptions – it still thinks the 22 per cent cost increase sector wide since 2021 never happened – and unbalanced value capture mechanisms in which the modelling is fanciful and that we will end up paying more than the $11.5 billion and its complete obliteration of the business case in general, we need to view this project in full.

Members interjecting.

Evan MULHOLLAND: Ms Shing and the government say, ‘Well, Infrastructure Australia needed to assess the east, north and west sections combined.’ You cannot calculate a benefit for the east and the north section if you are not willing to tell us the what the cost of the north section is. The minister says the west section needs to be included as well; well, the minister, with her investment case that she bandies about, says that a business and investment case for SRL West has not been completed, yet she is asking us to view the benefits through the north and the west as well. It is fanciful, and given Infrastructure Australia’s scathing assessment and given the fact that both the federal opposition and the federal Labor government have not committed the additional funding required to fund the federal $11.5 billion contribution, the Auditor-General respectfully needs to take another look at the Suburban Rail Loop East.

Council divided on motion:

Ayes (22): Melina Bath, Gaelle Broad, Katherine Copsey, Georgie Crozier, David Davis, Moira Deeming, Anasina Gray-Barberio, Renee Heath, Ann-Marie Hermans, David Limbrick, Wendy Lovell, Trung Luu, Sarah Mansfield, Bev McArthur, Joe McCracken, Nick McGowan, Evan Mulholland, Aiv Puglielli, Georgie Purcell, Adem Somyurek, Rikkie-Lee Tyrrell, Richard Welch

Noes (17): Ryan Batchelor, John Berger, Lizzie Blandthorn, Enver Erdogan, Jacinta Ermacora, David Ettershank, Michael Galea, Shaun Leane, Tom McIntosh, Rachel Payne, Harriet Shing, Ingrid Stitt, Jaclyn Symes, Lee Tarlamis, Sonja Terpstra, Gayle Tierney, Sheena Watt

Motion agreed to.