Victoria, PM agree on East West Link cash

Prime Minister Tony Abbott won't force the Victorian government to pay back $1.5 billion in East West Link funding, but it can't lay idle either.

Australian Prime Minister Tony Abbott

Tony Abbott has launched a new campaign pushing for the East West Link project to be built. (AAP)

While they continue to bicker about which project is best for Victoria, the state and federal governments can agree on one thing - funding for the East West Link will not have to be given back.

But Prime Minister Tony Abbott says the state has to spend the money wisely; it cannot let it sit idle.

Mr Abbott was in Melbourne on Saturday to relaunch the Liberal Party's "Just Build It" campaign.

And despite not finding time to meet with Premier Daniel Andrews, he was able to hold talks with Opposition Leader Matthew Guy about the campaign.

Speaking with local garden centre staff, Mr Abbott said it was clear that Melbourne residents in the east needed the East West Link, but he would work with the state government to build a road of national significance.

"I will continue to talk with the Victorian government about big road projects in Victoria," he told reporters in Ringwood.

"But the money can't just sit there idle without them doing anything."

Mr Abbott said the Western Distributor - put forward as an alternative by the state government - did not yet have a case study.

A large truck bearing the words "Stuck in traffic! Blame Labor", which will be driven around Melbourne, was also unveiled by Mr Abbott as he toured Daisy's Garden Supplies.

Deputy Premier James Merlino labelled the prime minister's visit to Melbourne as "idiotic and bizarre".

"He said last year the election was a referendum on the East West Link and Victorians voted for a different infrastructure priority," Mr Merlino told reporters.

"The prime minister is only interested in puerile stunts, not interested in sitting down with the premier of Victoria and talking about the exciting infrastructure project we have on the table."

Surprised Mr Abbott did not make time to meet Mr Andrews during his visit, Mr Merlino said the state government was getting to work on plans and costings for the second river crossing.

He said a business case would be available in coming months.

While his visit to Melbourne was brief, Mr Abbott fuelled speculation of an early election as he visited marginal seats.

He also handed over a cheque for $3 million towards a new library and town square in Ringwood before a quick visit to the ultra-marginal seat of La Trobe, where he announced $1.5 million for a community hub in Emerald.


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Source: AAP


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