Some of the possible reasoning behind the decision.
http://blogs.crikey.com.au/theurbanist/2013/05/09/why-do-governments-favour-road-over-rail-in-cities/
The Premier said yesterday the business case for Stage 1 of the freeway is positive. However he won’t release the business case publicly, he says, because that could adversely affect the price the government would have to offer potential private sector participants.
Voters make many more car trips than public transport trips. Circa 90% of all motorised travel in the Melbourne metropolitan area is by car. Only around 10% is by public transport. An ABS survey found 62% of Melburnians hadn’t used public transport in the preceding four weeks.
A significant proportion of the risk-bearing funding for the freeway is expected to be sourced from the private sector, helping the government to preserve its AAA credit rating. All of the funding for the rail line would need to come from government.
Tony Abbott says he’ll provide $1.5 billion for the freeway if he’s elected Prime Minister in September. He’s explicitly said he won’t fund urban public transport. Julia Gillard hasn’t promised funding for either project (although she’s promised $1.5 billion for a new freeway in Sydney).
New urban public transport investments incur high ongoing subsidies since farebox revenue only recovers about a third of operating costs. Toll roads recover all their operating costs.
The advantages of rail over roads are mostly in economic costs i.e. externalities. Many of these costs are diffuse and don’t affect the state budget directly, or if they do it’s often well into the future when “it’s somebody else’s problem”.
The freeway attracts a wide range of interest groups e.g. it will be used for intra-metropolitan freight and non CBD business-to-business trips. These aren’t served as well by rail.
Although new freeways start to congest in peak periods after a relatively short period due to induced demand, they provide much faster trips in off-peak periods. That benefit is usually sustained for many years.
The freeway does double-duty – it provides political cover for the government to delay committing to a rail line to Doncaster.
The cleverly-named East West Link will fill in a “missing link” in the freeway network. Politicians know that emphasising the network effect is an appealing argument.
There’s opposition to Melbourne Metro from within the ranks of public transport advocates..
http://blogs.crikey.com.au/theurbanist/2013/05/09/why-do-governments-favour-road-over-rail-in-cities/