The Victorian Auditor-General has been urged to probe the Allan government’s massive cost blowouts associated with major infrastructure projects in the state.
The opposition confirmed on Tuesday it had written to the Auditor-General seeking an urgent review into the blowouts, which have reportedly topped at least $38.8 billion.
“For the sake of all Victorians, Jacinta Allan’s waste and mismanagement simply cannot continue a second longer,” shadow transport infrastructure and major projects minister David Southwick said in a statement.
“Whether it’s higher taxes, higher energy bills, or underfunded schools, hospitals, roads, and local services, Victorians pay the price for every single Labor blowout.
“With so many being forced to cut back over Christmas, Victorians deserve to know just how much of their taxpayer money Jacinta Allan has wasted.”
The opposition claims 53 new or increased taxes have been introduced by Labor since it came to power in 2014, with the “financial mismanagement” meaning “Victorians are now paying the highest taxes in Australia – more than $5000 per person”.
The referral to the Auditor-General comes days after Premier Jacinta Allan confirmed the cost of the North East Link road project had blown out to at least $26.1 billion.
That is more than double the $10 billion price tag estimated in 2016, which had then been revised to $15.8 billion only a couple of years later.
A budget update from Treasurer Tim Pallas last week also confirmed Victoria’s net debt would balloon to $177.8 billion in 2026-27 – $6.4 billion higher than what the government thought it would be seven months ago when it handed down the state budget.
The government is expecting it will now spend an average of $21.3 billion annually on infrastructure investments, compared to the $19.6 billion the state budget had outlined.
The increase “reflects an update in estimated investment largely due to additional funding for the North East Link program and associated Eastern Freeway Upgrade and M80 Ring Road Upgrade projects”.
Meanwhile, rate rises will see the interest expense as a share of total revenue grow from 7.1 per cent to 7.4 per cent.
The government is tipping its interest expense will now come in at $5.662 billion this financial year, rising to $8.793 billion in 2026-27.
At a press conference on Friday afternoon, Mr Pallas defended the need for Victoria to rack up massive debts.
“There is no way that you can wind back the economy and expect to get to a point where economic growth assists in the management of our debt position,” he said.
(SKY NEWS)
