Abbott condemns East-West Link pull-out

Victoria will suffer from its government's "reckless" decision to tear up the contracts for a major road project, Tony Abbott warns.

The prime minister believes the decision to cancel the East-West Link contract for just the cost of payments made to date has damaged investor confidence in major infrastructure projects, despite the fact he labelled the November state election a referendum on the road.

Mr Abbott will talk to the Victorian government about other infrastructure projects but says there is nothing else that's "shovel ready" in the state.