Marion Lopez
Wednesday, 7 May 2014
VICTORIA has committed a record $27 billion worth of infrastructure investment in its state 2014-15 budget announced yesterday.
Of this, $24 billion will go to road and rail infrastructure, with about $14 billion specifically allocated to rail projects.
Melbourne Metro rail, including a rail link to Melbourne Airport, secured up to $11 billion.
The budget also committed up to $2.5 billion towards upgrades to the Cranbourne and Pakenham rail lines, featuring four level crossing upgrades.
A further $685 million has been allocated to a level crossing removal program.
In regional Victoria, $180-220 million will be used to upgrade country rail freight lines in the state’s west, including upgrading the Mildura to Maryborough and Murtoa to Hopetoun lines and standardising the Mildura to Geelong rail link.
In roads, the government promised to build the East West Link’s western section, in addition to last year's announcement of funding the eastern section, at an estimated cost of $8-10 billion.
The government said the project would provide an alternate route to the West Gate Bridge, benefiting commuters from Geelong, Ballarat and Melbourne's West.
A further $850 million has been budgeted to build more lanes along the CityLink-Tullamarine corridor and $130 million in additional funding is pegged for road maintenance and restoration, taking the total annual commitment to more than $500 million.
Another $362 million was announced for the duplication of 37km of the Princes Highway West between Winchelsea and Colac.
Moreover, $11 million will be spent upgrading 3km of Princes Highway East between NowaNowa and Orbost.
An additional $30 million will be used to upgrade the Sands Road interchange.
Non-road and rail infrastructure projects slated for funds include the building of new schools worth $500 million in Melbourne’s growth areas and redeveloping the Latrobe Regional Hospital at a cost of $73 million.
In total, these projects are expected to create 18,000 construction jobs.
The 2014-15 Victoria budget was applauded by many industry groups.
Master Builders Australia CEO Radley de Silva said the government had unveiled an ambitious infrastructure agenda that would stimulate investment and drive new jobs into Victoria’s construction industry.
“[It] represents a big win for the construction sector, providing a pipeline of major projects that will secure 18,000 jobs,” he said.
The Australasian Railway Association welcomed the budget and its strong emphasis on funding rail infrastructure.
“I am encouraged by the announcements for rail in this budget and how strongly it has featured in Premier [Denis] Napthine’s plans for the state, in particular its capital city Melbourne,” ARA CEO Bryan Nye said.
“In the $24 billion announced for road and rail infrastructure projects, $14.5 billion – more than half – is for rail.
“The Melbourne Rail Link is Victoria’s largest rail project and along with that title it will deliver a more reliable rail service, less congested roads and increased capacity for thousands of Melbourne commuters every day.
“This budget reflects a forward thinking government that is determined to see its capital city thrive into the 21st century by providing a strong, sensible and effective transport network for all.
“I congratulate Premier Napthine, [Roads and Public Transport] Minister Terry Mulder and their team on their budget for the future.”
The 2014-15 budget will also invest in training, with $1.2 billion per year to go to the vocational education and training sector to support people wishing to develop the skills they need to take advantage of opportunities in the economy.
In total, it is anticipated the budget will deliver an estimated operating surplus of $1.3 billion in 2014-15, rising to $3.3 billion by 2017-18.
The economy is forecast to grow by 2.5% in 2014-15, rising to 2.75% in 2015-16.
Employment growth is due to strengthen in the year ahead, with the unemployment rate forecast to fall to 5.5% by 2017-18.
Net debt is forecast to be 6.3% of gross state product at June next year, declining to 4.5% by June 2018.