Sewerage plant sale to raise $5b
Privatisation to fund major projects
THE Coalition will have a $5 billion infrastructure war chest if it wins the state election, with the massive budget boost to come from privatising Melbourne’s sewerage treatment service.
News Corp can reveal the Opposition plans to sell off a 50-year lease to help pay for its regional high-speed rail plan, suburban rail extensions and the construction of the East West Link and the North East Link.
The new private owners of Melbourne Water’s sewerage treatment business would be blocked from jacking up consumer fees, which will still be set by an independent regulator.
With both major parties releasing their pre-election costings today, shadow treasurer Michael O’Brien said the lease was a way to deliver on the Coalition’s infrastructure commitments without increasing taxes.
“This is a win-win for Victorians,” Mr O’Brien said.
“Labor will tax Victorians to pay for their unfunded promises. The Liberal Nationals will cut taxes while funding projects that Victorians need.”
Opposition Leader Matthew Guy also revealed last night that the Coalition would deliver a $100 million tax cut on stamp duty for pensioners downsizing their homes.
Under the plan, pensioners would save as much as $5200 when they sold a home worth up to $950,000 — an increase on the current pensioner stamp duty cap of $750,000.
Labor boosted the state’s budget bottom line by leasing the Port of Melbourne, reaping $9.7 billion, and it received another $2.8 billion selling off the land titles office.
The Coalition believes it can bring in at least $5 billion by leasing the sewerage business, likely to a pension or super fund giant.
“Having sold or leased nearly $15 billion of Victorian assets in just four years, we expect Daniel Andrews and Labor to support this important policy,” Mr O’Brien said.
Melbourne Water treated 320-billion litres of sewerage last year, and under the lease, the new owners would be required to increase the use of recycled water for non-drinking purposes.
Melbourne Water would remain owned by the Victorian Government and responsible to the state’s water minister, and the pay and conditions of staff would also be protected.
While the Coalition has not specifically allocated the money, it would be divided up to different road and rail projects, new train rolling stock, and new and upgraded hospitals and police stations.
“Labor will tax Victorians to pay for their unfunded promises. The Liberal Nationals will cut taxes while funding projects that Victorians need.” SHADOW TREASURER MICHAEL O’BRIEN