The Suburban Rail Loop’s first two sections will likely have a net social cost,the Parliamentary Budget Office has found.Credit:Jason South
The cost-benefit ratio for the first two sections – linking Cheltenham to Melbourne Airport – was between 0.6 and 0.7,the report found,meaning for every dollar spent the state would see a return of between 60¢ to 70¢ on its investment.
“This means that continued investment in the Suburban Rail Loop is likely to result in a net social cost,” the report says.
Andrews said including the running costs in the Suburban Rail Loop to 2085 would inflate the ultimate cost in a way that was not reasonable.
“When you buy a house,you pay for the construction of the house and the land underneath it. You don’t at the auction pay for electricity and gas,you don’t pay to fill the fridge full of food,you don’t pay for furniture,you don’t pay for rates. All of that comes at different points in time.”
The Victorian government’s planned Suburban Rail Loop.Credit:
He said it was crucial to “get on and build things” like the rail project as soon as possible. “Don’t leave it to another government to do what you should do and what the community needs,” he said.
Andrews estimated three months before the 2018 election that the project would cost $50 billion to link Cheltenham to Werribee.