Senate Rural and Regional Affairs and Transport Legislation Committee, , 3:31:26 to 3:35:34
Senators question the department regarding the Victorian Auditor General's report on emerging cost pressures for the Suburban Rail Loop and the Commonwealth's awareness of these issues.
Topics: Infrastructure, Government spending
Speakers: Hon Bridget McKenzie, Lachlan Wood, Unknown Speaker
>> Thank you so much. Um my question is of is around the suburban rail loop Um I want to go to the Victorian Auditor General's uh report. Was the department aware of the emerging cost pressures identified by the Victorian Auditor General before the additional $3.8 billion was committed in May 2026. Thank you, Senator Lachlanwood, uh, acting first assistant secretary. Um, we were not aware of the potential cost pressures identified by the Victorian Auditor General in their report until that was released. Um I
would note that um SRLA the delivery
>> and so in your regular meetings with the Victorian um government and the do you meet with the delivery agency or the
department? Uh so the department and the delivery agency attends for that
component of the meeting >> and neither the department nor the delivery agency prior to the release of the auditor general's report had raised with the commonwealth um concerns about cost overruns. >> Has the department taken its own assessment of the project's likely final
We have reviewed the cost estimate that was provided by Victoria Y um as part of our um evaluation process um to not to come up with our own number though we're just reviewing the work that they've
>> and and what did you find? Do you agree with their current estimate or have you got a different view?
>> Uh on the basis of the information that was available the estimate was
What was the plus or minus of reasonableness?
Um,
>> Tell me about the robustness of that process. >> Uh, so we have a team within um the
provided across a range of projects. Um they look at benchmarking from other similar projects. they look at available cost um and quantity units for similar
projects as well. Um and we also for SRL engaged an external consultant to review the costs and the sort of scope of the project. >> And who was the external consultant that you engaged? >> That was Belgrove Advisory. >> Okay. And when were they contracted? >> Uh I don't have that. I'll come back to you on the timing. >> Okay. [clears throat] Thank you. And um how much that cost? >> Thank you. Um has the Victorian government sought formally or informally any any further Commonwealth funding beyond the additional 3.8 billion um
Uh so the there was the request remains from last year for 9.3 billion from
Victoria um in September and that of that 3.8 billion has been committed by the Commonwealth
>> on top of the 2.2 billion which was originally committed.
Um, so that's the only formal commitment for funding that's been requested. >> The 9.3 >> 9.3. Sorry, apologies. Um, what about the potential cost overruns? >> Have they requested any additional funds for those?