Joint Statement - Federal Labor hits final nail into Suburban Rail Loop coffin

Joint Statement – Federal Labor hits final nail into Suburban Rail Loop coffin

Evan Mulholland, Shadow Minister for Major Projects

James Newbury, Shadow Treasurer

Victorian Shadow Treasurer, James Newbury, has declared that the Albanese Government’s Federal Budget has sealed the fate of the Suburban Rail Loop.

Mr Newbury said Prime Minister Anthony Albanese had “put the final nail in the coffin” of the SRL by ignoring it in last night’s budget.

“Even the Prime Minister, the leader of the Labor Party, has abandoned this project. Jacinta Allan is its last advocate, and it’s time she faced the facts.”

Mr Newbury warned that Victoria is now facing a near-certain credit rating downgrade due to the Premier’s refusal to scrap the costly project.

“A credit rating downgrade is now almost a certainty. We already know Victoria will be paying almost $26 million a day in interest by 2027-28, and with this looming downgrade, every single Victorian will be hit with increased costs.”

Shadow Minister for Major Projects Evan Mulholland echoed Mr Newbury’s concerns, stating the Federal Budget confirms the Premier’s own Labor colleagues have abandoned her pet project.

“This vanity project now has a $20 billion funding black hole when you add the additional $9 billion from the Commonwealth that’s been found wanting, and the at least $11.5 billion in dubious value capture taxes that have been obliterated by Infrastructure Australia,” Mr. Mulholland said.

“This project is completely unviable – use the exit clauses in the contracts already signed and cancel the project. Jacinta Allan needs to cancel the SRL before it’s too late. If the Premier can’t initiate an exit strategy, then she needs an exit strategy for her own job.”

Mr. Mulholland also pointed to previous warnings from credit ratings agency Standard & Poor’s regarding the state’s credit rating.

“S&P has previously warned that Victoria’s credit rating risked being downgraded if it forged ahead with the first phase of the Suburban Rail Loop without additional funding from the Commonwealth.”

“Last night was do or die for the Premier’s Suburban Rail Loop. Victorians now face a very real risk of a credit downgrade, driven by the Premier’s determination to press ahead with one costly tunnel in the eastern suburbs – putting families and our economy at risk.”

“Victorians are paying the price because Labor can’t manage major projects.”

Mr. Newbury also criticised the Federal Government’s budget approach, arguing that it mirrors the financial mismanagement of the Allan Labor Government.

“The Federal Budget follows the same reckless pattern as Victorian Labor – spending more than they earn. This is exactly what we’ll see in the upcoming state budget, where the government continues to spend beyond its means.”

With both state and federal Labor governments pursuing unsustainable fiscal policies, Victorians are being left to shoulder the burden of spiralling debt and economic uncertainty.

Evan Mulholland, Shadow Minister for Major Projects

James Newbury, Shadow Treasurer