Victorians react to $640m decision to scrap East West Link

The fallout continues after Victorian premier Daniel Andrews’ decision to scrap the East West Link toll road, which is set to cost taxpayers up to $640 million.

The public will foot a $339 million bill to the consortium behind the project for costs already incurred, while $220 million has reportedly already been spent.

A further $81 million has been paid to financiers behind the deal, but Mr Andrews said that money would be redistributed towards a Metro Rail project.

The deal to agree to scrap the proposed 18km toll road was only signed in the minutes before yesterday’s press conference, Fairfax Media reports.

Mr Andrews has denied the $339 million payout to the consortium behind the project is compensation, arguing Victorians had been held to ransom by the previous Coalition government.

“No compensation, none at all, will be paid to the East West Link consortium,” he said.

"This terminates the project and terminates the relationship in these terms and not a dollar more."

Yesterday’s announcement prompted a tirade from Victorian 9NEWS sports presenter Tony Jones, who labelled the decision “irresponsible”.

“I think it’s an absolute disgrace,” he said on TODAY.

“It beggars belief that you can thumb your nose at progress, infrastructure and the creation of 5000 jobs.

“It’s pigheadedness.”

Former premier Denis Napthine had signed a contract agreeing to pay $1.2 billion in compensation to the consortium, should the toll road be scrapped.

The decision to terminate the project leaves Victoria without a major infrastructure project ahead of the upcoming budget.

Mr Andrews said homes compulsorily acquired for the East West Link would be available for people to return to if they wish.

Prime Minister Tony Abbott has also slammed the decision, promising $3 billion in federal government money to any Victorian premier who wished to re-start the project in future.

“There is no alternative to the East West Link in Victoria,’’ Mr Abbott told a business lunch in Sydney yesterday.

“It is the only answer to easing Victoria’s traffic congestion.

“The Victorian Premier has today destroyed 7000 jobs.’’

Collingwood resident Keith Fitzgerald welcomed the news and said he was already planning the street party.

"I hope to get the title back to my house very shortly, and we'll get back to living normally," he said.