A bitter spat has erupted between the federal and Victorian governments over the cost of the first stage of the Shepparton bypass project, revealed to be $1.2 billion.
Key points:
- The cost of the first stage of the Shepparton Bypass is revealed to be $1.2 billion
- The federal government criticises the state government, saying this is almost five times the original estimate
- The Shepparton community has been campaigning for a bypass since the mid-90s
Federal member for Nicholls Damian Drum says the figure is almost five times what the estimated cost of the bypass was when the coalition committed $208 million in April 2019 as part of its 80 per cent share of the project.
He feared this cost blow-out, revealed by the federal government this week, could push the vital project back even further.
“I was proud to put my hand up and say I’ve finally got the money for the Shepparton bypass.
“It now seems I haven’t got the money even for the pre-works.”
But Victorian Transport Infrastructure Minister Jacinta Allan said the federal government was warned “on many occasions” the bypass project would cost more than the original estimate.
She said Mr Drum’s outrage was just a “political spray” at the state government before his retirement at the upcoming federal election.
“Damian Drum is understandably deeply embarrassed at his failure to deliver, for a number of years now, to the Shepparton community,” she said.
Fears cost blow-out could delay bypass
The Shepparton community has been calling for a bypass since the mid-90s.
It would create a 36-kilometre, four-lane, fully duplicated highway from Shepparton to Melbourne, reducing the number of trucks travelling through the city’s CBD.
The state government delivered a business case for the project to the federal government in April last year, two years after the Coalition announced its $208 million commitment.
But this document still hasn’t been released to the public.
The federal government claimed this was due to “strict secrecy provisions” from the state government when the business case was delivered.
However, Ms Allan insisted the state government was “very happy” for the business case to be released.
She said she had spoken with former deputy prime minister Michael McCormack several times about the project.
“I’ve made quite a few requests to meet with him.”
Claims federal regulations are to blame
Mr Drum claimed the “unviable” new cost was due to the state government budgeting for too many contingencies, including environmental and cultural heritage requirements.
“So I’m not surprised she has thrown into this business case every contingency possible.”
But Ms Allan said the contingencies were all due to federal — not state — legislative requirements.
“That’s what is contained in the business case,” she said.
‘We seem to be getting nowhere’
Independent candidate for Nicholls Rob Priestly is calling for the federal government to move past this political tussle, and release the business case to the public.
“What is the disadvantage? We as a community deserve to see it,” Mr Priestly said.
“They’ve had this business case for the better part of the year. What are they doing with it?
“They need to pick up the phone and speak to the Victorian government.
Independent member for Shepparton Suzanna Sheed acknowledged $1.2 billion was a “huge figure”, but said increased costs should have been expected.
“I think we should remember that the Echuca bridge started out at $79 million and ended up closer to $400 million,” she said.
“These things do get more expensive over time.
