THE STATE OPPOSITION claims the government is refusing to commit the proceeds from the sale of the Rural Finance Corporation (RFC) to regional Victorian infrastructure projects.
The sale of the Rural Finance Corporation last year netted a profit of about $460 million, which was earmarked for re-investment in regional Victoria.
Opposition Regional Development spokesman Damian Drum said $220 million had been committed to the Murray Basin Rail project, but it was not clear where the remainder would be spent.
Opposition Regional Development spokesman Damian Drum said Ms Pulford would not answer questions at the Public Accounts and Estimates Committee hearing, despite being asked repeatedly.
“Rural Finance Corporation was built on the success of our state’s farming sectors and regional communities rightly expect the money from its sale to be invested back into their communities – not into Melbourne-based projects, such as level crossing removals,” Mr Drum said.
“Given only 2.9 per cent of the state’s major infrastructure projects have been promised outside of Melbourne, I don’t think it’s too much to ask that this money goes back into regional Victoria. "
The government has confirmed it would use the proceeds of the sale of the RFC to fund the Murray Basin Rail project.
The remaining funds will be reinvested in regional and rural projects.
Regional Development Minister Jaala Pulford said the National Party had been caught out, misleading rural communities, by claiming the money would not be spend on the rail upgrade.
“The Labor Government is investing in our regions to create jobs and economic growth – this is unlike the former Government where the only thing that grew was the unemployment rate,” Ms Pulford said.
