Thursday, 3 April 2025

Suburban Rail Loop

Richard WELCH (North-Eastern Metropolitan) (12:08): (887) My question is to the Treasurer. Treasurer, S&P analyst Anthony Walker recently warned:

If Victoria pushes ahead with the Suburban Rail Loop without additional federal government funding, the state’s fiscal outlook may weaken, further eroding its credit standing …

Will the government threaten Victoria’s AA credit rating by proceeding with its SRL East project without additional Commonwealth contributions?

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:09): I thank Mr Welch for his question and the opportunity to talk about an amazing project, the Suburban Rail Loop. As you know, $14 billion has already been allocated to this project. It is a once-in-a-generation project. It is about ensuring that we are connecting people to jobs as well as education and health facilities. Importantly, Mr Welch, when you invest in infrastructure for the future, you are investing in the productivity of the state; you are generating more and more investment and more and more employment. There are thousands of jobs that are at risk in relation to anybody who thinks this project should not proceed.

Harriet Shing interjected.

Jaclyn SYMES: And 70,000 homes. So it is not only the direct employment opportunities of the project itself but the amount of activation that will be around it. We have certainly welcomed the Albanese government’s $2.2 billion commitment.

It is kickstarting the Suburban Rail Loop, and this is going to be a project of the future, ensuring that the state economy continues to benefit.

Richard WELCH (North-Eastern Metropolitan) (12:10): Thank you, Treasurer. Obviously we are going to borrow our way to prosperity – clearly. The S&P analyst Anthony Walker also said:

We believe there’s a real risk the SRL may cost more than the latest government forecasts, given the size and complexities of the undertaking and the state’s recent history of major projects going well over budget.

Treasurer, last year your predecessor claimed the SRL East would be immune, magically, from the 20 per cent increase in construction costs across the sector and remain at the $30 billion to $34.5 billion envelope. Can you affirm that that is still the case?

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:10): Mr Welch, the budget for this project is on track. We are within budget and expecting to be on time, and you can ask the Auditor-General to confirm my statements.