Labor claims bypass it had backed could not be delivered

The decision followed a review by the incoming Labor government of infrastructure projects the previous Coalition government had committed to, which found that the national program was “undeliverable”.

The News has since sought a greater explanation as to why the minister had made a full 180-degree turn on her comments 12 months earlier when she told parliament: “The money for the Shepparton bypass remains in the budget, and we are fully committed to that project”.

Following Ms King’s decision to withdraw funding, The News put a series of questions to the minister, including whether a lack of Victorian Government commitment had contributed to the federal withdrawal; what would need to happen for it to back the proposal again; and what the minister had to say to the businesses and residents of Greater Shepparton who had to live with the constant flow of trucks travelling through the city.

The minister’s office did not directly address most of those questions but sought to lay the blame for the withdrawal of funding at the feet of the former federal Coalition government.

“The Shepparton bypass project has very significant cost pressures and would need further detailed planning work in order for it to be deliverable,” a spokesperson for the minister said.

“The former Liberal and Nationals government made a funding commitment with no planning work done, no idea about costs and no co-investor, and the project simply cannot be delivered.”

The spokesperson said the government would only be funding projects that could be delivered.

“The Albanese Government is committed to delivering the infrastructure Australia needs, creating jobs and growing the economy while not increasing pressure on inflation,” the spokesperson said.

“Infrastructure needs to be properly planned so it can be properly funded and delivered to significant economic, social and environmental objectives.

“We will work with the state government on shared priorities and ensuring infrastructure that is funded can be delivered for the benefit of Victorian communities.”

Ms King’s answer in parliament supporting the bypass was to a question from Federal Member for Nicholls Sam Birrell.

The Nationals MP has defended the former Coalition government’s role and said it would seem the Victorian Government had not fully committed to the bypass.

“The previous Coalition government, in good faith, made a funding commitment to the project to try and get a recalcitrant Victorian Government to actually develop the business case and develop the project, so that’s what it was designed to do,” he said.

“I’m pretty disappointed that the Federal Government has, A, pulled the funding and then, B, tried to blame the previous Coalition government. I think the blame lies at the foot of the Victorian Government.

“There has been some expenditure from the Victorian Government on some planning work and some business case work, so the Victorian Government have spent some money, but we don’t know where they’re up to with it, so it’s a frustrating part of our federalism that the Federal Government pushes and pushes and says ‘We’re good for the money. Come to us with a project’, and that you’ve got to rely on state governments, some who can manage money and projects and some who can’t, to come up with the projects.”

Mr Birrell also said the Victorian Government should release the business case it had prepared for the bypass for it to be scrutinised.

The News approached the Victorian Government for its response to the federal decision, asking questions about its role leading up to the Federal Government’s withdrawal of funding for the bypass, but it hasn’t provided a response.

Nationals state Member for Shepparton Kim O’Keeffe and Liberal state Member for Northern Victoria Wendy Lovell have raised the issue in parliament multiple times and say the Victorian Government must not let the issue fade away.

Mr Birrell said he hoped the bypass could be realised with Labor governments at both state and federal levels but suggested the best hope for it to be built was for Coalition governments to be returned to power federally and in Victoria.