Victorians continue to pay the price of Labor’s major project mismanagement as reports reveal Labor’s Metro Tunnel project faces a further cost blowout of almost $1 billion.
In June this year, just two days after the Auditor-General raised concerns about the Metro Tunnel project being behind schedule and , the Allan Labor Government secretly offered the Cross Yara Partnership consortium additional payments totalling $888 million to complete the project.
The additional payments, which have remained hidden from Victorian taxpayers, comes on top of least $4 billion in cost blowouts on the project following a number of delays, changes and disputes.
This latest cost blowout follows a leaked government report revealing ongoing issues due to electromagnetic interference (EMI) from the Metro Tunnel, which continues to impact vital health services at the Peter MacCallum Cancer Centre and may result in slower travel times along sections of the route.
Following a decade of financial mismanagement under the Labor Government, major projects have blown out by more than $40 billion as Labor’s debt is set to reach a record $187.8 billion by 2027-28.
Leader of the Opposition, John Pesutto, said: “This extraordinary offer highlights the total lack of financial transparency surrounding major projects under the Allan Labor Government.
“Premier Allan must explain why this secret deal was offered, why it has been kept from Victorians and what the true cost of the Metro Tunnel now is.”
Shadow Minister for Transport Infrastructure, David Southwick, said: “Premier Allan has been caught out trying to do a secret backroom deal to finish a mismanaged project without any proper scrutiny or oversight.
“With negotiations still underway, Victorians are now facing the very real prospect of footing the bill for Labor’s latest billion-dollar cost blowout.
“Labor cannot manage money, cannot manage projects and Victorians are paying the price.”
