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The Bendigo and Echuca rail line will receive $91 million from Commonwealth coffers following the resolution of a funding dispute between state and federal governments.
A letter to Premier Daniel Andrews from Prime Minister Malcolm Turnbull confirmed the federal government will contribute the vast majority of the $1.57 billion regional rail revival package announced in the May state budget.
It had been feared up to $1 billion of public transport improvements on rail lines across the state would be re-evaluated and potentially scrapped by the Andrews government because of the stoush.
However, in his correspondence to the Premier, Mr Turnbull states: “I agree that Victorians deserve better public transport no matter where they live.”
In committing to funding $1.42 billion for the upgrades, which includes $555.6 million for the Ballarat line and $435 million on the Gippsland line, Mr Turnbull said the money “represents a significant investment that will improve public transport, grow the regions and create 1000 new jobs, including in the Latrobe Valley”.
Premier Daniel Andrews said: “We said we would fight every day to get the money that was owed to Victorians and that’s exactly what we’ve done.”
“This is a once in a generation investment that will upgrade every single regional passenger line in Victoria and create more than a thousand jobs.
“Our plan will see more trains being run in regional Victoria, helping people get home safer and sooner to their loved ones, wherever they live.
“It’s a win for regional Victoria and it’s a win for jobs.”
The state government announced its marquee infrastructure package with the expectation it would receive $1.46 billion in the federal budget under an “asset recycling scheme”.
But the federal budget only included $500 million for Victorian rail and $461.2 million "for future projects identified with the Victorian government".
Victorian Minister for Public Transport and Member for Bendigo East Jacinta Allan was bitterly disappointed with the federal budget.
“We can’t deliver a $1.4 billion package with only $1 billion in funding. It is up to the Prime Minister to explain to the people who have missed out.”
Ms Allan said the Andrews government had presented an opportunity to make a big difference to regional Victoria.