The revelation in Senate estimates that the federal government wants Victoria to help pay to fix the North East rail line came as a surprise to Public Transport Minister Jacinta Allan.
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“We have said to Victoria that we would be seeking a Victorian government contribution, with the level of that contribution still to be negotiated,” he said.
But Ms Allan has denied that was the case.
Her office told The Border Mail it had not received any requests from the federal government for Victorian money to fix the track.
The track comes under federal responsibility, through the Australian Rail Track Corporation, and the state has not given any indication it would be willing to help out.
“The Turnbull government's top infrastructure bureaucrat has confirmed again that the $100 million Malcolm Turnbull has allocated to the North East line isn't enough to fix it properly,” Ms Allan said.
“Our commitment hasn't changed – as soon as the Turnbull government properly fixes the track, we will order new trains for the North East line.”
She said she had a “productive” meeting with federal Transport Minister Darren Chester last week, but did not have an update on when track works would begin.
Mr Mrdak also told Senate estimates the government would seek to extend the ARTC lease with the Victorian government from 45 to 99 years as part of the inland rail project. He said it “gives the ARTC greater borrowing capacity to fund the project”.