Wednesday, 15 May 2024

 Richard WELCH (North-Eastern Metropolitan) (18:41): (894) The action I seek is from the Treasurer. In last week’s budget the Treasurer presented Victorians with a slew of cruel cuts, severely impacting essential services such as health and education. These services could have been adequately funded had the Allan Labor government managed their projects effectively. To date this government has presided over an alarming $40.4 billion in project cost overruns, a figure that could potentially increase as more information comes to light – and it inevitably will. The decade of financial mismanagement of infrastructure project cost overruns is the direct cause of the recent cut to basic services, which Victorians expected. These are not just numbers; they represent a failure to prioritise and protect Victorians. The worst examples of course include the North East Link, which has a 325 per cent blowout; the West Gate Tunnel, which has an 85 per cent blowout; and the Metro Tunnel, which has a 44 per cent cost blowout. These blowouts do not affect the Labor MPs that oversee them and do not affect those appointed to unelected positions who have their hands on the steering wheel. Instead, they impact everyday Victorians and their children, who will bear the financial brunt of this debt for generations.

These cost overruns should be understood. We must understand that they have a human cost to them. These cost overruns mean reduced public services. Cost overruns divert funds from essential public services like health care, education, ambulances et cetera, directly affecting my constituents. These cost overruns mean that during a cost-of-living crisis they have inflationary pressure. Cost overruns create job insecurity; there is an insecurity for local businesses and the community organisations. Lastly and most importantly, these cost overruns lead to an erosion of trust in government itself. How can Victorians trust a government when any figure that is quoted is rubbery and likely to be changed? Our society has lost genuine and transparent reporting – that is what we have lost. We have lost accountability for these initial underestimations and have failed to implement stricter oversight mechanisms to prevent future overruns. I urge all members in this chamber to recognise the urgency of addressing this financial mismanagement. It is crucial to support measures for improved fiscal management and governance over public projects.

The action I seek from the Treasurer is to know what steps he and his department have taken to understand the reasons for these blowouts and what specific changes he has implemented to guarantee that future projects do not cost Victorians more than they should.