Victorian Premier Jacinta Allan has defended extending her free public transport initiative despite mounting concerns over the state’s growing debt.
Victoria’s free public transport scheme will now run until the end of May, before shifting to half-price fares for the remainder of the year, a move expected to cost the government $400 million in lost revenue.
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From June, the daily fare cap will be cut from $11.40 to $5.70, with full-time commuters tipped to save about $880 over seven months.
With the war in the Middle East driving up fuel costs, Allan told Sunrise on Monday that pressure on household budgets was only increasing.
“We’re doing this because, as we’re seeing, that ongoing conflict, the war in the Middle East, is continuing to put pressure on prices at the pump,” Allan said.
“It’s also putting pressure on household budgets. And I’m determined to use government to help families here in Victoria.”
The premier has faced questions over Victoria’s nearly $200 billion debt, the highest of any state, but she insisted the government was in a position to absorb the cost.
“We are the only state on the eastern seaboard that will be delivering an operating surplus this financial year, which means we have the resources available to us to use the position of government to support families,” she said.
Jacinta Allan has defended free public transport despite soaring state debt in a Sunrise interview. (Joel Carrett/AAP PHOTOS) Credit: Sunrise/AAP
Pressed by Sunrise host Nat Barr on whether the spending was responsible, given the debt burden, Allan pointed to major infrastructure investments across the state.
Among those projects is the Metro Tunnel, which has delivered 1,200 additional weekly services since the start of the year, alongside 19 new schools and 11 new or redeveloped hospitals.
Allan said the policy was designed to deliver immediate relief, particularly for households already feeling the strain.
“It’s not everything, but it is making a difference right now. And I believe the government should be helping people right now,” she said.
Victoria remains the only state to introduce such a scheme, as governments across the country grapple with rising cost-of-living pressures.
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