The state government's extension to a rail container incentive program has come under criticism by the deputy leader of the Victorian Nationals and Lowan member.
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Emma Kealy has accused the state government of issuing "false claims" about the Mode Shift Incentive Scheme, which had received $3.5 million under the 2022-23 state budget to continue until June 2023.
The Mode Shift Incentive Scheme provides incentives to shift containerised freight from roads and onto rail through government subsidies.
Minister for Ports and Freight Melissa Horne was in Horsham on July 12 to announce the extension, which saw her visit the Wimmera Intermodal Freight Terminal.
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Ms Kealy said the $3.5 million extension of the program actually represented funding cut from the $3.6 million invested into the scheme in 2021-22.
"The MSIS program allows regional rail freight operators to offer competitive transport options for exporters, encouraging them to use rail instead of road transport to get their goods to the Port of Melbourne," Ms Kealy said.
"Since 2018 however, Labor has cut $3.4 million in funding from the MSIS and is relying on a year-to-year funding model.
"This does not provide the necessary certainty for businesses to cost and commit to send their freight by rail rather than our already dangerous roads.
"It is also another perfect example of how wrong Labor's priorities are when they are making funding cuts to essential programs that work to get more freight off our roads and on to rail."
In response, a Victorian government spokesperson said Ms Kealy "misunderstood how the supply chain worked", and pointed to the state's investments in the Port Rail Shuttle Network, the Port Rail Transformation Project and a new intermodal terminal in Melbourne's west.
"The Liberal Nationals continue to demonstrate their lack of understanding in how the supply chain works. Extending the Mode Shift Incentive Scheme is putting dollars back into farmers pockets," the spokesperson said.
"Only Labor is investing in this scheme which is moving more freight onto rail and taking more trucks off local roads, and at the same time - we're also continuing our record investment in upgrading regional rail freight lines for long term change and to benefit farmers well into the future."
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Others such as the Horsham Rural City Council welcomed the funding announcement for the "essential" container subsidy program.
Horsham mayor Robyn Gulline said the program would see much truck traffic diverted off of the region's roads.
"This not only damages our already failing road infrastructure, but creates congestion in Horsham where trucks must travel through the centre of town, because, at the moment, there are no alternative routes.
"The MSIS doesn't solve the problem, but it certainly helps alleviate some of the strain that is placed on local government as our already fragile roads bear the brunt."
Cr Gulline said the planned growth of mining in the Horsham area meant that rail freight would be even more critical in the future.
"With four of the world's largest sand-mining projects planned within a 70-kilometre radius of Horsham, for the Wimmera there is a lot riding on our capacity to send containers by rail," Cr Gulline said.
"Over long distances, trains burn less fuel and carry far higher volumes than road transport."
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