Victorian Liberals could stop contracts in progress on Suburban Railway Loop if elected in November state election

While the Liberals had already promised to shelve the first stage of the 90 kilometre rail line in favour of health spending – they’re now ramping-up their opposition to the build – by suggesting they may stop works that are already underway.

Although the Coalition plans to honour its commitment not to “rip up” early works contracts already signed by the Andrews government, Shadow Transport Infrastructure Minister Matt Bach has revealed to Sky News he’s open to amending them, after discussions with figures in the construction industry. 

“It’s possible that groups who have already been contracted may come forward to say, look ,there are other infrastructure priorities for example that are backed by Infrastructure Victoria unlike the so-called SRL and that they may wish to have terms of contracts altered… now if that’s the case well of course I would have those discussions,” Mr Bach said.

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“It’s been put to me by two to three figures in the industry that that may well be the wish of entities who have signed contracts already.

“We haven’t seen those contracts of course so quite frankly I’m not even sure that that’s possible.”

It’s a significant shift in the party’s position.

Mr Bach says there have been discussions with industry about how to ensure early works don’t go to waste if the project doesn’t go ahead under a new government.

“I think its common sense to have ongoing discussions, as I do every single day, with key stakeholders in the broader sector,” he said.

If current contracts can be amended, Mr Bach said entities may wish to pivot to provide works that can be utilised for new projects such as a light rail, a concept backed by the Rail Futures Institute.

“The broad idea of some better linkages between the spokes in Melbourne’s hub and spoke rail model is something that I support,” he said.

“I will have more to say about trams and light rail before the election certainty but when it comes to the potential utilisation of the tiny amount of early work, that will be a matter for the integrated transport plan that we will put in place as a key priority in the transport portfolio while in government, working very closely with the experts at infrastructure Victoria and Infrastructure Australia.”

The amount of $2.3 billion dollars has been allocated in the state budget for early works.

Early works include things like moving utilities, protecting underground services, ground improvements and road modifications.

The Suburban Rail Loop was a 2018 election promise from Premier Daniel Andrews – as part of his “Big Build” agenda.

Victoria’s government initially forecast the first two sections of the loop – the east and the north link – could cost up to $50 billion dollars.

In 2018, Transport Minister and now Deputy Premier Jacinta Allan told 3AW the loop would cost“in the tens of billions, potentially up to $50 billion.”

Independent analysis from the Parliamentary Budget Office has suggested it could closer to triple that amount.

Victoria’s anti-corruption watchdog has indicated that Big Build program is among the projects it’ll investigate over the next 12 months – as it probes the possible improper influence of lobbyists and donors.

Expressions of interest for two tunnelling packages opened earlier this year but the government maintains major contracts won’t be signed until 2023.

“Our view has always been and we’ve articulated it very clearly, that every single cent we can claw back from the project we will, we are absolutely unapologetic about that, we are crystal clear about that,” Mr Bach said.

“In the process we will honour the contracts that have been signed for early works – there aren’t many of them – and in the context of the massive cost for the overall project, they aren’t worth a huge amount of money either.”

A Victorian government spokesperson said: “While the liberals make their minds up, we’re getting on with building Suburban Rail Loop and will continue to work closely with the community and local councils to deliver its benefits.”