MELBOURNE, June 27 (Xinhua) -- Australia's federal government said on Tuesday that it would provide a major funding boost to Victorian regional rail, ending a prolonged dispute with the state government.
The Commonwealth of Australia will provide 1.07 billion U.S. dollars to fund major regional rail network upgrades following extended negotiations between Victoria's Transport Minister Jacinta Allan and her federal counterpart Darren Chester.
The money will go towards upgrading existing tracks across Victoria as well as running more train services connecting Melbourne with regional hubs.
Premier of Victoria Daniel Andrews announced the railway project in April, believing that Victoria would receive 1.07 billion U.S. dollars owed by the federal government under the Commonwealth-States Asset Recycling Initiative.
Prime Minister Malcolm Turnbull offered to pay 672 million U.S dollars, prompting an extended stoush between the two governments.
Andrews said securing the funding on Tuesday was a "win for regional Victoria and a win for jobs."
"We said we would fight every day to get the money that was owed to Victorians and that's exactly what we've done," Andrews said in a statement on Tuesday.
"This is a once-in-a-generation investment that will upgrade every single regional passenger line in Victoria and create more than 1,000 jobs."
Chester said the reluctance on the federal government's part was due to a lack of detail provided by Victoria.
"What we're interested in is details on the work required," Chester said.
"In the initial stage, Victoria sent a one-and-a-half-page letter demanding money. They have been giving us detail now and background, we're pleased to be on board."
He said he was hopeful that more train services would help combat the housing affordability crisis sweeping Melbourne.
"We see great value in linking our regional communities in a way that helps address congestion issues in Melbourne and allows people to be more connected," Chester said.
"At least part of the answer towards housing affordability in metropolitan areas is improved liveability of regional areas and improving connectivity is part of that."
