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Aust'n PM ends bitter feud with state gov't over transport funding

Xinhua, October 28, 2015 Adjust font size:

The war of words surrounding Victoria's future transport funding has ended, with Australia's Prime Minister Malcolm Turnbull confirming he will transfer 1.10 billion U.S. dollars into the state's coffers to build new projects.

Turnbull recently wrote to Victoria's Treasurer Tim Pallas, and revealed the money would be made available to the state government in the near future, according to correspondence Pallas disclosed to Melbourne radio on Wednesday.

Pallas said the two governments were still "finalizing the details" of the funding deal, but it would definitely revolve around new "road or rail projects".

Before his downfall in September, former Australian PM Tony Abbott had publicly criticized the Victorian government's move to rip up the former Coalition-led government's contract to build the controversial East West Link road project.

Victoria's Premier Daniel Andrews favored the construction of the Melbourne Metro Rail project instead.

Abbott declared the Andrews-led state government would not receive a cent of the money his party had put aside for the shelved road link, with the PM saying the 1.5 billion USD would remain in a "locked box".

But following an abrupt change to the Liberal Party leadership, Turnbull - who has already pledged to become another 'Infrastructure Prime Minister' - and Andrews have looked to mend the two parties estranged relationship.

"I've got to say it's been a pleasant change of attitude from the Commonwealth Government, since the new Prime Minister and Treasurer came into office," Pallas said on Wednesday.

"Many have laid claim to being 'Infrastructure Prime Ministers' - let's hope this all translates into real action."

"The Commonwealth are ready to put the East West Link debacle behind them and move on with positive and rational projects that Victorians voted for."

Fairfax Media reported on Wednesday that it was likely the cash reserves would be redirected into road projects such as the Western Distributor proposal- a linkage of Melbourne's major arterial roadways - or an extension of the Monash Freeway. Enditem