VECCI statement on Andrews Government agreement on East West Link

VECCI Chief Executive Mark Stone said the organisation has been a long-standing supporter of the East West Link project and is obviously disappointed that the project will not proceed under the Andrews Government.

"The project would have reduced congestion, made the movement of freight more efficient and improved the amenity of Melbourne’s growth areas," Mr Stone said.

"We acknowledge that in the 2014 state election campaign, Daniel Andrews promised that a Labor Government would not proceed with the project. 

"VECCI acknowledges that the Victorian Government has reached a good faith agreement with the East West Link consortium to terminate the contract without compensation or legislation. 

"However, the fact that a substantial $339 million in bid process, design and pre-construction costs have already been incurred is unfortunate for taxpayers. 

"In addition, $81 million in fees were incurred to establish a credit facility for the East West Link project. However, this facility will now be used to support the Melbourne Metro Rail Project.

"The costs and complexities associated with East West Link confirms the establishment of Infrastructure Victoria, an independent body to advise on significant infrastructure planning and development matters, must be a priority. 

"We need to ensure there is a long-term approach to capital works beyond election cycles.  Key to this process is not only a broad and strong consensus on Victoria’s infrastructure priorities, but clarity, confidence and certainty for the private sector. 

"A priority of Infrastructure Victoria will be to determine what needs to occur to offset the loss of East West Link and reduce rapidly expanding congestion on Melbourne’s roads. This needs to encompass a second river crossing," Mr Stone said.

"In the interim, the State Government must use the coming State Budget to make an unequivocal commitment to deliver its forward infrastructure agenda, including the Melbourne Metro Rail Project, the removal of level crossings and vital capacity-enhancing regional projects."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au 

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