Statement from Matthew Guy MP
Melbourne is Australia's fastest growing city at almost 100,000 people every year.
A growing city needs new road, rail and port infrastructure.
Daniel Andrews’ reckless, political decision on the East West Link will cost Victorian taxpayers around $800-900 million and scrap the biggest road project in Australia.
The $420 million payments announced today is in addition to approximately $400-500 million in sunk costs already incurred by the State Government. These sunk costs, by government, include land acquisitions, project development and bid costs. These do not include sunk costs accumulated by the private sector.
The decision to spend around $800-900 million to walk away from the East West Link contract is economic vandalism that will cost Victoria 3,700 new jobs and Australia's largest new road project.
Labor's claim that $339 million was paid or spent by the previous government is a complete lie. One absolute certainty arising from today is that the Andrews Government is signing a cheque to the consortium for minimum $339 million to extinguish this contract.
The lost $800-900 million will mean fewer schools and hospitals will be built, fewer trains will be ordered and Victorians will still be stuck in traffic. Daniel Andrews has put politics ahead of outcomes for Victorians.
Only a Labor government is incompetent enough to waste $800-900 million to scrap Australia's largest job generating, traffic busting infrastructure project.
Daniel Andrews is playing politics and has damaged Victoria’s international reputation as a place to invest and do business.