The federal budget has confirmed a multi-billion dollar commitment for Melbourne’s long-awaited airport rail link.
The budget outlined a $5 billion commitment from the federal government for the project. The federal government expects its Victorian counterpart to at least match the funding.
Federal budget papers reveal the money has been accounted for as grant revenue, for initial accounting purposes, with up to $250 million available to be spent in the four-year forward estimates period, but the bulk of the money to be spent well into the 2020s.
The fine print makes it clear the commonwealth is not planning a
$5 billion gift to Victoria.
“Specific funding arrangements, including an option for equity investment, [will be] settled at a later date and with an equivalent contribution to be provided by the Victorian government,” the budget papers say.
Federal Treasury says the commonwealth expects to exercise control over building projects in which Canberra has an equity stake and wants to see a financial return on its investment.
But the Andrews government has made it clear it has no interest in a loan-type arrangement with the commonwealth for airport rail. It has a track record of preferring to be in full control of big projects in the state.
– Noel Towell/T
he Age
