Magazine of Socialist Action in Australia

VIC: Labor set to hand over compo

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Forced to dump the East West toll road following the November state election, the Victorian Labor government is now negotiating with the consortium who signed the dodgy contract to build the project.

By Socialist Party reporters

Despite previously saying that “the contract is not worth the paper it’s written on” and that “there will be no compensation”, it appears now that Labor are poised to payout the consortium hundreds of millions of dollars.

At the time of signing the project was clearly in doubt against the backdrop of an active community campaign, three Supreme Court challenges and a pending state election. The consortium knew the risks involved in rushing to sign to the dodgy contract and deserve no compensation.

Labor’s refusal to stand up to the greedy profiteers in the consortium highlights their pro-big business outlook. Disappointingly the Greens, who now have MPs in both houses of parliament, have also refused to put forward a bill aimed at blocking the payout.

Rather than wasting millions of dollars on corporate handouts, the money should instead be used to improve Melbourne’s ailing public transport network. This is what the bulk of Victorians want to see taxpayer dollars spent on.


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