THERE is a business case - albeit an interim one - for the multibillion dollar rail project at the centre of the Victorian government's infrastructure budget.
Treasurer Michael O'Brien said the project, unveiled on Tuesday, built on work carried out for the Melbourne metro rail project.
Labor's Martin Pakula, at a budget estimates hearing on Friday, said the government had not done its homework on the Melbourne rail link, calling it a "phantom project" for an election year.
Mr Pakula, opposition scrutiny of government spokesman, cited a Fairfax report that quoted Planning Minister Matthew Guy saying he had not planned a business case for a station at Fishermans Bend.
Mr O'Brien said the government had prepared and considered an interim business case for the Melbourne rail link.
"Does the Melbourne rail link project have a business case? Yes, it does," he said.
Mr O'Brien said the government had built on the work initially done for the metro rail project but it would not have delivered the capacity increase needed.
"What became apparent was the metro proposal was not going to deliver the sort of capacity enhancements that we need," Mr O'Brien said.
Mr Pakula said the government had had a business case "retrofitted" to an announcement it had made.
Mr O'Brien said considerable work had been done and the Melbourne rail link was the better option of the two projects.
Shadow treasurer Tim Pallas said all the Melbourne rail link did was keep the south-east out of the city.
"You get a second rate, poor performing rail network that doesn't double the size of the city loop and that extracts and excludes the people of the south east out of the city," Mr Pallas told reporters.
He said the Melbourne metro plan - which Labor says it will build if it is elected in November - had been costed and described as "shovel ready" by Infrastructure Australia.
"The costs associated with this government's project, well who knows? It's been made up on the back of an envelope."
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