Deputy Prime Minister and Nationals leader Barnaby Joyce has revealed the cost of the first stage of the Goulburn Valley Bypass project is $1.2 billion, more than three times what was envisaged when his government stumped up $208 million to fund the Commonwealth’s 80 per cent share.
That funding commitment led to the Victorian Government developing a business case for the project that was delivered to the Federal Government in May last year but has remained a secret as both parties refused to publicly release it.
Mr Joyce went on the record over a coffee in Shepparton and upped the ante, saying the Victorian Government needed to explain the cost blow-out.
“The problem is it started as a $300 million or $400 million job and it now looks like $1.2 billion, so we’re trying to get the Victorian Government to say why the cost has gone through the roof,” he said.
“Why is it so damn expensive? I mean we have to do it, we have to do it.”
Mr Joyce said there were “so many bloody regulations and environmental studies” involved that inflated the cost.
“People think they make you feel good but they actually stop you from building it, they stop you from building stuff.”
Asked if he was prepared to still commit to 80 per cent funding if the cost remained at $1.2 billion, Mr Joyce said he still backed the project.
“I want to build it, I don’t want to have to build at $1.2 billion, I want to find out why the cost is tripling,” he said.
“I have to be prudent, I want to do it but we have to be prudent with taxpayers’ money.”
Mr Joyce again referenced a multitude of environmental, geotechnical and other studies.
“Where does the actual cost of construction start? I’m really interested in that,” he said.
Mr Joyce also questioned whether the Victorian Government, which would contribute 20 per cent of the cost, was really committed to the project.
“Sometimes when Victoria, or any state, doesn’t want to do it they come back with a ridiculous price,” he said.
“I had one the other day where the initial price was $200 million and it is now $1.4 billion. They don’t say they don’t want to do it, they just make it ridiculous.”
Mr Joyce said taxpayers deserved to know where the costs came from.
“Mr and Mrs Smith have to go to work to pay for that bypass, they pay their taxes, so where has this number come from?” he said.
“Show me the people who came up with this number and I want to see all the numbers that add up to it, because I'm fascinated.”
Victorian Transport Infrastructure Minister Jacinta Allan said the Federal Government’s initial estimate dated back to 2016 and the route it picked went over an unlined landfill, a flood plain, and significant First Nations cultural heritage sites.
“This is classic Barnaby Joyce talking through his hat about things he truly doesn’t understand,” she said.
“I’ve been seeking a meeting with the new deputy prime minister for months; when he can find the time, I’m happy to explain to him how to build a big project and comply with many environmental regulations including those that come from his government’s own act.
“Shepparton deserves better than this. The deputy prime minister can splash billions of dollars of cash to NSW and Queensland, but he continues to ignore Victoria and then can’t take responsibility for his own under-costed election commitment.”