The Hon Catherine King MP
Media conference - Sunshine station, Melbourne
CATHERINE KING [MINISTER]: Thanks, everybody. Well, welcome. I’m Catherine King, I’m the Federal Minister for Infrastructure. I’m joined here by my state colleague Danny Pearson, and of course our federal members Bill Shorten and Daniel Mulino.
Thanks very much. Well, look, this is a great announcement that we're making here jointly with the Victorian State Government to progress the Melbourne Airport Rail. We know one of the critical elements in order to make Melbourne Airport Rail a reality is the upgrade of this Sunshine Precinct, to make this really the Southern Cross of the West – a really significant hub for rail in order to make sure we can get Melbourne Airport Rail in. This $63 million announcement to do the detailed design work to really make that a reality is really the next milestone of making Melbourne Airport Rail a reality. We had the Neil Scales report that I commissioned earlier this year saying the Sunshine Precinct was really important, that we commenced that work on a no regrets basis to make sure we actually deliver the Sunshine Precinct as part of the Melbourne Airport Rail. I know what an important project this is for the state of Victoria, and it's terrific to be partnering alongside my colleague Danny Pearson to really start to progress what is a very important project for the state of Victoria.
I'm going to hand over to Danny, and then we'll take some questions. I understand you've got a bit of interest in some other issues as well, so thank you.
DANNY PEARSON [MINISTER FOR TRANSPORT INFRASTRUCTURE OF VICTORIA]: Thanks, Catherine. And look, it's just fantastic to be here today with Minister King to announce that we're getting on and doing the detailed design work for the Sunshine Station. $63.5 million will be provided to do that detailed design work in order to make sure that Sunshine Station can become the Southern Cross of the West. This is going to be an absolute game changer for the community because we're going to be providing additional platforms. We're going to be enhancing and signalling and really untangling what has at times been a bit of a bottleneck. And it's going to be really important, not just for the western suburbs, but 70 per cent of all line V/Line traffic. So, 70 per cent of all V/Line traffic comes through Sunshine Station as well. So, this investment is going to be an absolute game changer. It's going to mean that we can provide additional capacity.
Now as Catherine said, this is really important to look at doing that first part of Melbourne Airport Rail. But also, these investments help to ensure that we can look at electrifying the line to Melton. We can look at running more additional services down to Wyndham Vale, as well as increasing the capacity more broadly. So, this is a really welcome investment. I'm really pleased that finally in Canberra we've got a Federal Government that knows where Victoria is, that the Albanese Government continues to support our Big Build agenda, and that we're in a position to start to really make these sorts of investments.
Obviously, in relation to this investment, it does enable us to look at being able to build that connection to Melbourne Airport Rail. We are still, though- have been frustrated by Airport Rail in relation to the work to date. I'm pleased that when I recently met with them, they have dropped their unreasonable demands for an underground rail solution. We will continue to work with them. Obviously, we've still got the delays that have been embedded in the program because of that, but we recognise that this investment is going to make a profound difference to the western suburbs. It's going to be fantastic for people who travel on the V/Line services through Sunshine Station. And again, this investment will ensure that Sunshine Station becomes the Southern Cross of the West. Very happy to take your questions.
JOURNALIST: The Parliamentary Budget Office has estimated that the return on the Suburban Rail Loop is $0.60 for every dollar invested. Does this project stack up?
DANNY PEARSON: Look, on script, whenever John Pesutto is in trouble, he cuddles up to the PBO and asks the same dodgy questions and gets the same dodgy answers, right? Like, with major infrastructure projects, you never factor in operating costs. It's like saying we're going to buy a house, but we've got to factor in 50 years of running costs, a lifetime of trips to Bunnings in order to work out what the cost is. It is just a nonsense. That's what the PBO did with their costings. They looked at the operating costs. They also looked at things like replacing rolling stock in the 2080s, for goodness sakes. Like, it is a dodgy question asked of the PBO, but the reality is this project stacks up. We've provided 1000 pages’ worth of business case material, plus appendices that's publicly available, that shows that the BCR for this project stacks up at $1.70 for every dollar invested.
In addition to this, what the PBO- in addition to the dodginess of these costings, the PBO has used a 7 per cent discount rate. Now for multi-generational infrastructure projects, the global rate you use is 4 per cent. So, it just follows – like if you ask a dodgy question and you use dodgy numbers, you get a dodgy answer. And that's exactly what we've got today, because John Pesutto is- his leadership is in strife. Let's be clear about as well, on this point – come 2026, we're going to have 4000 jobs on the SRL. We are going to build 70,000 homes along the corridor, and we're going to provide a major 21st century transport linkage to Australia's largest university. So, if you're against the SRL, you're against the jobs, you're against the housing and you're against major transport infrastructure to Australia's largest university.
JOURNALIST: Nonetheless, the Federal Auditor-General says Victoria is responsible for holding up the federal approval process for getting more money into the SRL. Why the hold up? Why have you left the feds hanging?
DANNY PEARSON: Oh, no. Look, let's be clear about this. The ANAO decided they wanted to conduct an inquiry in relation to that $2.2 billion commitment that the Federal Government had made. Now, I didn't think, as Minister, it would be right or appropriate to issue the paperwork, to provide the paperwork at the time while that audit was ongoing. I just don't think that's fair and reasonable. The ANAO said that they were going to investigate these matters. The ANAO have concluded their investigation, and in the near term we'll be providing the PPR to the Federal Government so that those funds can be released and we can invest in this project, because this project just stacks up, right? Like- you know, we will have 4000 jobs by 2026. We're going to create 70,000 homes along the corridor, and we're going to provide modern 21st century transport infrastructure to Australia's largest university, right? So you're connecting people to housing, to jobs, to a health precinct, being Monash, and to an educational precinct. Like, the project just stacks up.
And the same people who are critical of Suburban Rail Link would have been the same people 50 years ago who were critical of the underground rail loop, right? We have to do this. We're going to be the size of London by the 2050s, and that's going to come in a blink of an eye, and that's why we've got to get on and deliver this project.
JOURNALIST: So you can guarantee to us here today that you'll submit everything that the federal department needs, everything that Infrastructure Australia needs by the end of the year?
DANNY PEARSON: Also, in relation to these issues, there's the issue around the $2.2 billion worth of funding, and the ANAO has requested that documentation be provided to the department and that the IAA have a look at that. So we'll work our way through that and provide that shortly. I'm in regular dialogue with Minister King, as is my office and our respective departments in relation to seeking further Commonwealth support. And look, as the State Infrastructure Minister, I will always fight for our fair share of infrastructure funding. What I will say though, it is refreshing having a federal government who knows where this state is, right? Like, the Federal Government provided billions of dollars’ worth of funding to our [indistinct] …
As I was saying, it's just refreshing to have a federal government that knows where Victoria is. And the Albanese Government has provided billions of dollars’ worth of funding to our Big Build agenda, and we'll continue to work really closely with the Albanese Labor Government to make sure Victoria continues to get its fair share of infrastructure funding.
JOURNALIST: Danny, I didn't hear a solid yes. Are you committing to giving those documents by the end of the year? The question has to be asked, Minister.
DANNY PEARSON: No, no. So there's two separate issues here. There's the issue around the $2.2 billion, which is for the PPR. Now- which is a PPR for an election commitment. That documentation will be provided as soon as practicable. So that squares away the $2.2 billion. In relation to additional funding requests, we will be continuing those conversations with the Federal Government to try and seek additional funding for the Suburban Rail Loop because the project just stacks up.
JOURNALIST: Is the Government going to put this project on hold?
DANNY PEARSON: Absolutely not. Absolutely not. What we are getting on and delivering this project- I want to be really clear on this. This project is going to be delivered because we can't not do this. Right? I mean, look, this project will be- workers will be building and working on this project long after John Pesutto's miserable leadership comes to an end. We are committed to this project because the project stacks up. And if you're against the project, you're against the jobs, you're against the housing, and you're against a major transport connection to Australia's largest university.
JOURNALIST: Under the current scope that it is today? It will continue in the current scope?
DANNY PEARSON: Yeah, absolutely. I mean, we've made it really clear this project will be delivered by 2035 for an estimated cost of between $30 billion and $34.5 billion. We've already gone out. We've signed the first contract. We've signed off on that late last year. That came below our targeted cost, and we're currently at to market now for additional works. We are not taking a step back.
Like, I want to be clear on this, and I'm happy to come before you every single day between now and 2026 make it abundantly clear we are not for turning. We are not for quitting. We are not stopping. We are getting on and we are delivering this project. The project has been overwhelmingly endorsed by the Victorian public on the last two occasions.
JOURNALIST: When exactly is work going to begin here at Sunshine to turn it into a [indistinct? When exactly will people be able to get on a train here and get to the airport?
DANNY PEARSON: Yeah, so look, the first step of the process is to do that early detailed design work. That work will commence shortly with the $63.5 million investment. Obviously, we then have to go out and do- So we'll do that detailed design work to scope it out, and then we'll have further announcements to say in relation to doing those early works and then doing the running of procurement process and then looking at delivering the outcome. But this is a really first important start, turning this station into the Southern Cross of the West.
JOURNALIST: Will it be next year?
DANNY PEARSON: Well, I think we want to do the early design work now, and my expectation will be to start [indistinct]….
JOURNALIST: What about the [indistinct]?
DANNY PEARSON: So the question was in relation to the Airport Rail Link itself. So, in order to build the link to the airport, you've got to make these investments here at Sunshine, and that's about untangling the signalling, modernising the signalling, and building additional platforms. So, we've got to do that work first. Now, I met recently with airport and I was pleased that they have dropped their unreasonable demands for a below ground station. But in that discussion, they still referred to compensation. Now, we need to understand what do they mean by that. I don't think it's fair or reasonable that Victorian taxpayers will be on the hook for providing compensation to a private operator of an asset on which we are going to build a major transport linkage on land which is not a state land, it's actually owned by the Federal Government.
So, they've flagged their issues around compensation. We’ll need to bottom that out and work with them. I'm really pleased that we've had that dialogue with them recently. We'll continue to work closely with them. I'm pleased they have dropped their unreasonable demands for a below ground station, but we'll just need to bottom out those issues in relation to compensation. But the reality is that you can't have a link to the airport unless you have an upgrade here at Sunshine. And today is a really important announcement as a consequence of the joint work between ourselves and the Albanese Labor Government. We’ll be making sure that we provide that $63.5 million for that detailed design work to start on that journey, which is going to be fantastic.
JOURNALIST: The jury last week ruled out any state compensation. So do you expect the Federal Government to fork out fees?
DANNY PEARSON: Look, I mean, I think the Commonwealth has- sorry, the APAM, the private operators, have talked about compensation. Again, look, we'll just need to bottom that out, and what do they mean by that, what quantum are they talking about. That work is ongoing. I think the issue here is that- I would say, I don't think it's a fair or appropriate for Victorian taxpayers to be on the hook for compensation. But I think the important thing to know is when you make these sorts of investments here in Sunshine, when you make Sunshine Station the Southern Cross of the West, you can look at being able to build that into the airport. You can look at ultimately electrifying the line to Melton. You can look at running more services down to Wyndham Vale, and you can look at improving the capacity of the network, and you're going to provide a benefit for regional users for Melbourne, for 70 per cent of V/Line services are from here.
Sorry. I’m sorry, I missed that again. Sorry?
JOURNALIST: [Indistinct] …
DANNY PEARSON: Sure.
CATHERINE KING: Sure. Have you finished with questions- if you can do that and we’ll just …
JOURNALIST: So, if the State Government isn't going to commit to any compensation, that obviously leaves two options: either you're confident that the airport will actually no longer- you get to a stage of negotiations where they no longer want compensation or it becomes a Federal Government issue. Which one is it likely to be?
DANNY PEARSON: Well, look, I mean- look, ultimately, questions in relation to APAM are a matter for APAM. They've indicated that they're still talking about issues around compensation. I mean, ultimately that's a matter for them. I think the important thing to note here though, is we are getting on and we are making Sunshine Station the Southern Cross of the West. We are absolutely committed to that because of all the benefits that will flow from it, and we're committed to delivering that. And the $63.5 million that we're announcing today will be a really important first step along that journey.
JOURNALIST: Just one more for you, Danny. Sorry. Are you concerned by union threats of a 72-hour wildcat strike across the state's Big Build sites?
DANNY PEARSON: Oh, look, I mean, ultimately, industrial relations are a matter for our construction partners. I mean, look, I would expect that people conduct themselves lawfully on all work sites around our state, and I would hope that people would be very mindful of that.
JOURNALIST: Just quickly on another matter, the Myki system, is there any update on when that will be upgraded? So people can tap off and on the train [Indistinct] …
DANNY PEARSON: Yeah, I need to come back to you on that. I mean, I think [indistinct] contract out that work is- that work is ongoing [indistinct]. Good?
CATHERINE KING: Good. Okay, thank you. If I can hear you’ll just have to bear with me. I have a little bit of a cold as well.
JOURNALIST: [indistinct]
CATHERINE KING: Well. the announcement we're making here today is really- comes off the back of the report done for me by Neil Scales, where he said in order to progress Melbourne Airport Rail, there were three things that needed to happen. The first was investment in “no regrets” works and making Sunshine Railway Station the Southern Cross of the West. So that's what we're announcing today, the first part of that. He also said that we needed to redo the traffic costings on the Tullamarine, and to make sure we're doing that, my department is progressing that work. And the third thing was that it said very clearly that if the airport wanted to do an underground station, it needed to go and do the costings and the geotech work for that. We've now had the airport drop that request, and the Victorian Government is now able to work and is in dialogue now with the airport about what that station box, what that bringing the rail into the airport looks like. So we are in early days of those discussions, and when we've got updates on those, we'll provide those to the media. But we are in really early days of those discussions, and I don't think it's helpful to enter into hypotheticals about [indistinct]. You can see how busy the station is here.
JOURNALIST: When was the last time you met with him?
CATHERINE KING: I actually spoke to Laurie Argus recently because, as you may have noticed, I made a major decision in relation to the third runway. So I spoke to her just in the last few days.
JOURNALIST: And was she requesting compensation from the Federal Government?
CATHERINE KING: We haven't had a discussion about Melbourne Airport Rail. The discussion was about the third runway. But what I would say in relation to the capacity that we're going to see at Melbourne Airport, we know that the capacity for Melbourne Airport is in the demand for flights out of Melbourne Airport is only going to be increasing. By building airport rail, and we're the last airport in the country that doesn't have that rail connection, will be of significant benefit to the people of Victoria, but also significant benefit to the airport as well.
JOURNALIST: So you have not had any conversations recently with the airport about …
CATHERINE KING: Again, I'm not going to- and we are in early stages of this. We're doing what the Neil Scales report requested that we do, and that's what the announcement today is about. Sunshine- the Southern Cross of the West here, doing that work, doing the work on Tullamarine and discussions will continue about how we deliver Melbourne Airport Rail.
JOURNALIST: Just one more question, off topic as well. News today that police are investigating another incident involving fake AI pictures being spread at a school. Does the Government have plans to work with or support schools to combat this growing issue?
CATHERINE KING: Well, as you know, in relation to AI and the awful images that are being created and spread online, and they are- we are making that illegal. We’re actually making that an offence, and that's important. And I know that every level of government is continuing to work with schools as they grapple with what is a really complex problem and a complex issue. But the work we've done in terms of the social media platforms, ensuring an age limit on access to social media, is really important. We know that we are seeing a tsunami of mental health issues because of young people and social media. That is what our government is doing. And Bill, might like to say- to add to this. He and Amanda Rishworth have been doing work on this in particular. But it is awful. No one should be creating fake images of people, spreading on [indistinct] online. It is an offence to do so.
JOURNALIST: Does the Suburban Rail Loop stuck up?
CATHERINE KING: Certainly in terms of what the audit report has said, and we welcome the audit report, is that now it is to go through the processes that I have been saying all along. There is a PPR report required that comes to me. Every single infrastructure investment program- project comes to me via a PPR. Infrastructure Australia will assist my department in assessing that and provide advice to me about the release of that $2.2 billion.
JOURNALIST: Do you expect to get all the information you need from the State Government by the end of the year? Is that what you're hoping for?
CATHERINE KING: Well, the timeline really is a matter for the Victorian State Government. I receive a PPR report and I receive advice from my department, and that happens to be- I have them on my desk regularly in relation to the over 800 projects we have in the infrastructure investment pipeline. Every one of them under the National Land Transport Act requires a PPR, and this project is no different.
UNIDENTIFIED SPEAKER: Last questions.
JOURNALIST: Is the Government willing to do anything to, I guess, try and prevent 72 hour strikes on worksites following threats from the protest yesterday?
CATHERINE KING: Yeah, well, let's be clear here. What we are trying to do is clean up illegal activity in the construction industry, working through the administrators to make sure that this union, an important union that makes sure that we have safety on our workplaces, that we have good wages and conditions, making sure that illegal activity is not occurring. That's been the focus of the Government to really clean up this industry, but also to work with employers to make sure they are making sure out of every construction dollar that the Federal Government is putting in, we are getting value for money, and we will continue to focus.
UNIDENTIFIED SPEAKER: Thanks everyone.
CATHERINE KING: Thank you.
JOURNALIST: Minister [indistinct] what's your reaction to that [indistinct] will damage the local amenity in the area?
DANNY PEARSON: Oh, look, I think we've been really clear that we would remove eight level crossings along the Upfield Line. It's really important that we do this. Since 2015, there's been something like 36 near misses along that route. Something like 71,000 cars a day cross those same level crossings. But we've gone away, we've done the work, and we've found that an elevated rail solution is in the best interest of that corridor. It will create two MCGs worth of public space. We will be reducing the number of stations from three down to two. We want to provide 21st century transport infrastructure to the people in the inner north. And that's exactly what we're going to do when we get rid of these [indistinct] crossings.
JOURNALIST: Why is the [indistinct]?
DANNY PEARSON: Well, I think the issue here is that if anyone who knows the Upfield line knows this rail corridor is a very old corridor, and that you've got a number of properties closely aligned to the rail corridor. We need to reduce the number of stations from three to two so that we can look at providing a better outcome, particularly from a heritage perspective. I think that if we were to not do that, there's concerns about the impact on the local heritage.
In addition to that, the corridor is very well serviced with stations anyhow. I do acknowledge that when you reduce from three stations to two, there may be an increase in journey times, but we've estimated that to be no more than two minutes in relation to walkability. And at the end of the day, the people of Brunswick and the inner north are going to have a much better travelling experience. It's going to increase the level of amenity by creating two MCGs worth of public open space up beneath the elevated rail solution. And it's something that we’ve committed to, and we will deliver.