The state government will sell the Port of Melbourne to fund infrastructure projects in the upcoming budget
EXCLUSIVE: MELBOURNE’S port will be sold by the Napthine Government, delivering a multi-billion-dollar bonanza to bankroll huge road and rail projects.
With Labor already committed to the sale of Australia’s busiest port, Treasurer Michael O’Brien told the Herald Sun that within months the Government would start the sale process.
MORE: VICTORIA TO DECIDE PORT FATE AT THE POLLS
The sale, to be confirmed in the May Budget, would be tied to plans to develop the Port of Hastings as a second container port for Victoria.
“We’re not just kicking the tyres. This is the road map to privatisation,” Mr O’Brien said yesterday.
The Port of Melbourne is set to be sold regardless of who wins the next State election. Source: HeraldSun
The Government’s privatisation green light means that Victoria’s economic gateway will be sold no matter who wins the state election in 269 days.
DO YOU AGREE WITH PLANS TO SELL THE PORT OF MELBOURNE? TELL US IN THE COMMENTS BELOW.
Both sides of politics offer rival plans for how the sale’s billionswill be spent. In November Labor pledged a $6 billion price, to be used to remove Melbourne’s 50 worst level crossings.
Opposition Leader Daniel Andrews said today Dr Napthine had copied the Port of Melbourne sale plan he had criticised for months.
“Denis Napthine may be the Premier but he’s not a leader,” Mr Andrews said.
“The best people to deliver Labor policy is a Labor Government.
“Only Labor will use very dollar from the sale of the Port of Melbourne to remove 50 of the most dangerous and congested level crossings.”
But Mr O’Brien said the Napthine Government could reap an even greater windfall for the port by tying its sale plans to developing the Port of Hastings.
“I think there’s a way you can add value because by giving rights or options to develop Hastings, you are effectively conferring almost a monopoly,” he said.
“But there’s nothing wrong with that because port charges are actually regulated by the Essential Services Commission,” Mr O’Brien said.
Coalition v Labor. Source: HeraldSun
The Treasurer said money from the sale “will largely go into transport infrastructure”.
This would be likely to include the second stage of the East West Link and the Metro Rail Capacity Project, including a rail link to Melbourne Airport.
But Mr O’Brien refused to be drawn on exactly how the money would be divvied up in the next Budget.
The Treasurer also poured cold water on recent talk that the second stage of the East West Link might be built simultaneously with the first.
“We’ve got a lot of things we are looking at the costings of ... in terms of when you can realistically start them and when you can realistically afford them without blowing our debt out,” he said.
Do you agree with plans to sell the Port of Melbourne? Source: HeraldSun
“Even on things like East West, for example, you can have some overlap between Stage One and Stage Two.
“But if you’ve got too much overlap between them, then you jack up the cost of the projects, because you’ve got labour shortages and all that sort of stuff,” Mr O’Brien said.
“So I’m air traffic control. I’ve got all these planes — these big bloody planes in the air at the moment — and I’ve got to bring them down in the right order, so that they all land safely and we can afford them,” he said.
Mr O’Brien hinted the port sale could even be completed within 18 months.
“If you look at the Port of Sydney it only took about 18 months to do theirs,” he said.
“You don’t need to do it in 18 months, as long as you’ve made the decision. Then you know the deal will be done over the forward estimates.”
An analysis of the sale plans is being prepared by consultants KPMG.
james.campbell@news.com.au
The Port of Melbourne will be sold to fund other projects across the state. Source: HeraldSun
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