Former Victorian premier Jeff Kennett has urged the state government to borrow money to build a comprehensive underground rail system for Melbourne.
With interest rates at record lows, Mr Kennett believes now is the time for the government to take out a loan and begin the project.
He believes an underground rail network that stretches to outer suburbs and even areas where suburbs are not yet built, is vital.
"I'm of the view, and always have been, that as our population grows in Victoria we need to have an underground rail system and in order to build that we need to borrow money," Mr Kennett told ABC Radio on Monday.
He said an underground rail system "would do more for productivity and growth than perhaps anything else".
The federal coalition and the Victorian government have committed to building the East West Link, a multi-billion dollar road linking the Eastern Freeway and Tullamarine Freeway.
Federal Labor has promised $3 billion for a Melbourne Metro rail tunnel project.
Melbourne's peak motoring body the RACV said improvements to both road and rail were needed, but the East West Link must be the priority because it was the most advanced project.
RACV manager Brian Negus said Victoria was grinding to a standstill and urged both major parties to stop playing politics and deliver on road and rail projects.
Federal Opposition Leader Tony Abbott reiterated his commitment to the East West Link on Monday, saying the project would improve productivity and reduce travel times.
Greens deputy leader Adam Bandt says it is a good time in Australia economically to invest in infrastructure.
"It's not often that Jeff Kennett gets it right," he told reporters.
"To borrow at the moment in Australia is the cheapest that it has been for a very long time.
"You have to wonder what's the point of having a triple A credit rating if you don't use it to borrow to fund the infrastructure of the future."
