Thursday, 13 November 2025

 Richard WELCH (North-Eastern Metropolitan) (12:36): My question is to the Minister for the Suburban Rail Loop. It is a question of financial timing. Can the minister confirm that the third of the SRL project costs that will be, in your words, ‘funded through value capture’ will be initially paid by the state through new debt before any of that value is supposedly captured?

 Harriet SHING (Eastern Victoria – Minister for the Suburban Rail Loop, Minister for Housing and Building, Minister for Development Victoria and Precincts) (12:37): Thank you, Mr Welch, for your question and for your interest in the Suburban Rail Loop, Australia’s largest housing and transport infrastructure project. As you would have seen, this is a project that continues to have support reinforced for it from both the Victorian and federal governments. As you would know, the revenue forecasts of value capture will be published in the budget in the usual way. The way in which value capture is delivered will be done in accordance with the business and investment case. Do not ask me to table it again, but I have got a copy in my drawer should you wish to see it.

Value capture measures are being worked through by the Department of Treasury and Finance and the Department of Transport and Planning. The Treasurer and I are working very closely, along with our Commonwealth counterparts, on developing and delivering this part of the process for value capture and the funding model as it is set out in the business and investment case.

As you would be aware, Mr Welch, this is not the first time that value capture has been used in the delivery of infrastructure projects in Australia or even indeed in Victoria. The city loop used a levy, for example. But the specifics of value capture will be developed and tailored to each project. We do want to make sure that as we deliver that we are tailoring this in a way that makes sure that we are not just following in a cookie-cutter approach what has worked for one project in respect of this particular project. Enabling more homes and more development across the SRL station precincts, will, as you know, lead to more development and significant benefit to property developers in these areas. It is really only fair that they are being contributed to by –

Richard Welch: On a point of order, President, I have waited patiently for 2 minutes on a question that I clearly prefaced as being a question of financial timing. It is about when. If you are funding it through value capture but the value capture is not yet here, how are you funding it in the meantime? I ask the minister to return to the question.

The PRESIDENT: I believe the minister is being relevant to the question.

Harriet SHING: I will just take you up on the way in which you phrased that point of order. When you talk to the way in which the project is being financed, we are talking about $14 billion, more than enough to be able to get tunnel-boring machines into the ground next year. We are also in the process of negotiating contracts in a way that delivers best value for taxpayers.

If, Mr Welch, you are saying that a coalition government will foreshadow the end result of contractual negotiations for major projects in the budget papers, then it cannot be reasonably concluded that you would be acting in the best interests of taxpayers, which in and of itself is an interesting development. I am looking forward to making sure that as preferred bidders continue their discussions and negotiations with government, particularly in respect of contracts that have not yet been finalised, we do so in a way that delivers that value for money.

 Richard WELCH (North-Eastern Metropolitan) (12:40): Actually I am very glad to hear that you are working closely with the Treasurer, because I am sure in the next budget, or even at PAEC, you will be able to remove ‘to be confirmed’ from the financing lines of this project. But for the rest of the time we are going to remain in the dark. Noting your answer, can you now please advise exactly how much money the state government initially intended to borrow to build this project? Is it $11 billion, is it $22 billion or is it more? And I ask, for the benefit of the house, that your answer be coherent.

 Harriet SHING (Eastern Victoria – Minister for the Suburban Rail Loop, Minister for Housing and Building, Minister for Development Victoria and Precincts) (12:41): Thank you, Mr Welch. When we talk about delivering a project, again the business and investment case of August 2021 talks about an envelope of between $30 billion and $34.5 billion. We have a project which is being delivered on time and on budget, and we have ongoing negotiations for the purpose of the awarding of major contracts in order to continue work. We want to make sure also that we are delivering those funding envelopes as that funding is required to be expended. Mr Welch, you would know from your background as a financial professional –

Richard Welch: On a point of order, President, on relevance, I clearly asked that the answer be coherent. The minister has gone nowhere near it.

The PRESIDENT: I think the minister was being relevant to the question.

Harriet SHING: In respect of coherence, Mr Welch, that might indeed be a fault that lies with the person who posed the question.

Georgie Crozier interjected.

Tom McIntosh: On a point of order, President, I think Ms Crozier should withdraw that comment.

Georgie Crozier: What ‘You idiots’?

Tom McIntosh: Yes.

Georgie Crozier interjected.

The PRESIDENT: Order!

Members interjecting.

The PRESIDENT: I am sorry, Mr McIntosh, I did not hear the interjection. I will listen more intently if there are any similar injections. I have lost my track. Minister, over to you.

Harriet SHING: You are not the only one, President. I would just like to perhaps look to a number of the things that you have said, Mr Welch. If you are saying that the coalition would scrap certain value capture initiatives, you should say so and explain what programs you are going to cut as a result. I think we are up to about $11 billion in coalition cuts now – very, very keen to see where and how those cuts will be materialising.