No fee hikes for rail tunnel, Vic premier

Victoria's premier says a business case that proposes fee hikes to help pay for the $11 billion Melbourne Metro Rail tunnel is "very old".

Victorian Premier Daniel Andrews.

A plan to increase transport fares to pay for the Melbourne Metro Rail tunnel has been scrapped. (AAP)

Victorians have been assured train and tram fares, car registration and CBD parking fees won't be raised to help pay for the $11 billion Melbourne Metro Rail tunnel.

Premier Daniel Andrews says a "very old" business case proposing fee increases for such a project was being revised and would be released later this year.

"We've got no plan of doing any of that," Mr Andrews told reporters when queried about whether the revised plan would contain fee hikes.

The business case prepared for the previous government back in 2011 proposed hikes in train and tram fares, car registration, a road toll premium and a one-off rates lift.

It suggested hundreds of properties and some parkland could be acquired to build the tunnel.

Mr Andrews says some properties will be acquired but the government will have discussions with those affected during the planning process.

The government has promised $1.5 billion in Tuesday's budget for the planning and design of the Melbourne Metro Rail project.

The project will construct two nine-kilometre rail tunnels from South Kensington to South Yarra and five new underground stations, starting in 2018.

Opposition transport spokesman David Hodgett said a new rail link was important but accused the government of rushing the project.

"An extra rail link is vitally important for Melbourne but we need to get it right," he said in a statement.


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Source: AAP


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