VICTORIA'S economy will slow dramatically if the State Government fails to build Sir Rod Eddington's proposed $7 billion rail tunnel, a transport academic has warned. He says the tunnel would enable more people to work in the CBD.
Graham Currie, chair of public transport at Monash University, said constraints on Melbourne's transport system mean the number of commuters who can travel into the CBD has nearly peaked.
Without urgent action, Victoria's productivity will fall as businesses disperse across Melbourne when it becomes impossible for more people to travel into the city, he said.
His fears have been echoed by the Victorian Employers' Chamber of Commerce and Industry, which has warned that small city-based businesses will suffer if larger firms — on which they rely for work — are forced to move out of the CBD.
The Victorian economy is heavily dependent on Melbourne's CBD, with almost a quarter of the state's $230 billion gross regional product generated within the City of Melbourne.
Sir Rod has said a rail tunnel from Footscray to Caulfield would bring at least 40,000 extra people an hour into the city — the equivalent of five West Gate freeways, Professor Currie said. "No one is suggesting we build five West Gate freeways into Melbourne … But an important fact is that CBDs are a huge part of the Australian economy … We have been living off the back of an empty railway to get people here efficiently and now that's finished," he said.
In September, The Age revealed that the State Government was considering abandoning the project in favour of reopening a disused 80-year-old tunnel beneath Footscray.
Professor Currie said anything that increased the size of the rail network should be encouraged but Sir Rod had comprehensively shown that the tunnel would add the capacity Melbourne needed.
"Expanding CBD rail is not just a transport issue, it's at the heart of the future of the Australian economy," he said.
The State Government's new transport plan will respond to Sir Rod's proposals before the end of the year. But with the decision-making done behind closed doors, it has been left to transport experts and observers to debate the project in public.
Both the rail project and Sir Rod's $9 billion road tunnel have won enthusiastic support from powerful lobby groups like VECCI and the RACV, with VECCI spokesman Chris James saying it would be disastrous if transport into the CBD were not upgraded.
He said the Victorian economy revolved around businesses and services such as those in the financial, legal and urban planning sectors — most of which had their headquarters in the city and relied on each other to perform at optimum levels. If it becomes more difficult to travel to work or these businesses are forced apart, productivity will drop.
"It ultimately makes it more difficult for those businesses to source available talent if that talent can't get to work in a timely fashion," Mr James said.
"If firms reduce their investment in the inner-city, it means all money on services that they spend on is reduced … there's a huge flow-on effect."
While the rail tunnel has widespread Labor support, the road tunnel linking the western suburbs to the Eastern Freeway has divided elements of the party.
The Victorian Labor Party's transport policy secretary resigned over his committee's decision to endorse it. And Education Minister Bronwyn Pike has risked her political future by backing the road tunnel, which will run through the heart of her Melbourne electorate.
The Greens remain opposed to both tunnels, and last month released their own $14 billion "People Plan".
Opposition transport spokesman Terry Mulder has backed a road tunnel.
City of Melbourne Lord Mayor candidate, Peter McMullin, has a leadership role at VECCI. Look at his policies here www.petermcmullin.com.au. We will do a profile on all of the candidates once they are finalised.
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