A key election promise to remove eight level crossings in Melbourne’s north has stalled, as the exploding cost of major projects heap pressure on the Victorian budget.
In September 2022, the Labor government committed to get rid of another eight crossings along the Upfield line between Brunswick and Parkville by 2027.
A media release stated community consultation and further project design would begin in early 2023 under a “re-elected Andrews Labor government”, but there has been no sign of either.
Transport Infrastructure Minister Danny Pearson repeatedly refused to say if the 2027 completion date would be met.
“We’ve got a pattern of works, a series of works that we’ve got to do in relation to removing level crossings,” he told reporters at state parliament on Thursday.
“Every level crossing is different and we remain committed to our overall target by 2030.”
Daniel Andrews came to power in 2014 on a signature policy to remove 50 level crossings by 2022 and raised that target to 75 by 2025 before the 2018 state election.
A month out from the 2022 poll, the then premier said Labor would remove 110 level crossings by 2030.
Opposition transport infrastructure spokesman David Southwick said the project was being “sacrificed” for the contentious Suburban Rail Loop, an 90km orbital rail line to run from Cheltenham to Werribee via
Melbourne Airport.
“This is (premier) Jacinta Allan’s vanity project,” he said.
“Jacinta Allan needs to put the freeze on Suburban Rail Loop – don’t sign Victorians up to more debt and ensure we have a budget that we can afford.
“We are at crisis point.”
The state government has pledged $11.8 billion to build the $34.5 billion eastern section, with the remainder expected to come from federal funding and “value capture” revenue.
A 400-page business and investment case released in 2021 showed the east and northeast sections could cost up to $50.5 billion.
Victoria’s independent Parliamentary Budget Office cast doubt on that figure in 2022, calculating the cost to build the first two sections at $125 billion.
A budget update in December revealed Victoria’s net debt was forecast to climb to $177.8 billion by June 2027, $6.4 billion higher than estimated in May.
The state government blamed the budget blowout on spiralling infrastructure project costs, particularly the North East Link after its estimated price tag spiked from $10 billion to $26.1 billion.
Victorian Treasurer Tim Pallas will hand down his 10th state budget on May 7
