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MEMBER for Benambra Bill Tilley is not prepared to offer “blind support” for the creation of a rail connection to the Logic industrial hub.
Mr Tilley said he wasn’t aware of the existence of a feasibility study into the multimillion-dollar proposal which is trying to woo financial support from Wodonga rate- payers and Victorian taxpayers.
The Border Mail rev-ealed this week documents existed outlining the incentives being sought by proposed hub operator SCT, which includes the council agreeing to defer the payment for land at Logic, the right to reserve adjacent blocks of land and a multi-year rate holiday.
The state government is being asked to contribute about $7 million to cover the earthworks and installation of the rail line.
“SCT is a fine example of Australian enterprise,” he said.
“But until I see a full feasibility study I can’t offer my blind support for taxpayer investment.
“I think these funds would be better spent on ongoing brownfield companies in the region and new rolling stock for existing state services.”
The council has been trying to build a rail terminal at Logic for almost a decade.
The former Victorian Labor government committed $4 million, the council pledged $6 million and the federal government was lobbied for the balance of the project once valued at $21 million.
But the $4 million state government contribution sat in limbo until being re-directed to a truck stop which was officially opened yesterday.
A rail hub has been built at Ettamogah by Colin Rees, who also questioned the due diligence done on a potential rival at Logic.
“There has been no discussion of the business case for building a terminal at Logic right now, whether the demand is there to make it viable or how it would commercially survive once the initial subsidies are gone,” he said.
“I know about the need to ask these hard-nosed commercial questions.
“Five years ago my family built the Ettamogah rail hub 10 minutes up the highway.
“It’s a state-of-the-art efficient facility that offers competitive pricing without the need for government handouts.”