Murray Basin Rail Project caught in budget impasse

THE $440 million Murray Rail Basin Project is stuck in no man’s land after the political blame game over who is responsible for funding it sank to a new low on Thursday.

The Andrews Government kicked in $48.8 million for the half-completed, nation-building project – which would fix a century-old rail network – in this week’s State Budget.

But it fell well short of the $244 million needed to complete it, with the government saying it would seek an additional $195.2 million from the Commonwealth to get the work done.

It prompted Deputy Prime Minister Michael McCormack to weigh into the issue on Thursday.

He told Sunraysia Daily the Victorian Government was “entirely responsible for works” on the much-needed rail project, which would take tens of thousands of trucks off the roads during harvest season.

“It is important to remember that the Murray Basin Freight Rail network is a Victorian Government-owned and operated asset,” Mr McCormack said.

“Nonetheless, the Australian Government is considering next steps to address the significant challenges faced by industry and communities as a result of the project being halted by the Victorian Government.”

The five-stage project – which stalled in June last year – would standardise hundreds of kilometres of tracks, from the Manangatang line to the Port of Melbourne, bringing freight services into the 21st century and possibly paving the way for passenger rail services to Mildura.

The State Government sent a revised business case for the project to the Federal Government in May. However, it fails to standardise rail to Sea Lake and Manangatang.

The latest plan remains in the corridors of the Federal Department of Transport, Regional Development and Communications — Mr McCormack’s department.

“We are very disappointed that the Federal Government once again let Victoria down by refusing to fund anything for this project (in the Federal Budget in October),” Victorian Agriculture Minister Jaclyn Symes said.

Victorian Transport Infrastructure Minister Jacinta Allan added: “The original business case was significantly deficient in a number of ways.

“That original scope massively underestimated the cost,” Ms Allan said.

As grain growers are left fuming over the impasse, Member for Mildura Ali Cupper called on the state and federal governments to stop the blame game.

“I have maintained all along that the Murray Basin Rail Project should be completed in full, and ultimately who funds it is largely irrelevant,” the independent MP said on Thursday.

“I am continuing to press the Victorian Government about the standardisation of the Sea Lake and Manangatang lines being left out of the revised business case.

“The Federal Government is not powerless in all of this though. They have an opportunity to ensure the project is funded in full, if they choose.”

Federal Member for Mallee Anne Webster said the failure of the Victorian Government to allocate funding for the completion of the Murray Basin Rail Project was “beyond disappointing”.

“It is clear the Victorian Government has disregarded the concerns of stakeholders and the needs of regional Victoria by refusing to accept their responsibility to complete this project,” Dr Webster said.

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