Labor committee calls for new cost analysis of $34.5 billion project
The committee asked the Allan government to publish an update on its response to Infrastructure Australia’s recommendations.
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They also noted that SRL East’s significant size and long construction period meant there were many risks in its delivery.
Last year, Suburban Rail Minister Danny Pearson insisted the $34.5 billion price tag would be maintained despite a 22 per cent increase in construction costs since the jobs report was published in 2021.
The new minister responsible for the rail line, Harriet Shing, repeated this claim to the committee in 2025, saying this was due to the decision to split the project into multiple work packages and improvements in contract negotiations.
The Allan government has been contacted for comment. The government is generally required to respond to a committee report within six months of its publication.
Committee chair Sarah Connolly said the recommendations were designed to ensure every taxpayer dollar was spent to deliver measurable benefits for Victorians.
“Transparency and accountability are essential to maintain public trust and achieve better results,” he said.
Opposition major projects spokesman Matthew Guy said the government needed to be upfront about SRL East’s “true financial statements”.
“If there is nothing to fear, there is nothing to hide,” he said.
Another key recommendation in the forecast report is for the Department of Treasury and Finance to update its guidelines for annual reports, thereby requiring government departments to report on savings.
Finance Minister Jaclyn Symes has promised to find savings of $3.3 billion in her next budget over the next four years, the equivalent of around 1,200 jobs.
He also received a review of the public sector from Baillieu-era civil service chief Helen Silver, who was tasked with delivering cost savings across government, including the amalgamation of many public bodies in Victoria.
A response to this review is expected to be published by the government in the coming weeks.
The 2025-26 budget includes $9.7 billion in emergency funding that is not allocated to any department.
This figure has decreased as a proportion of total spending since peaking in 2021-22, but still accounts for a larger share of the budget than before the pandemic.
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