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Canberra owes Vic $1.46bln: Pallas

AAP logoAAP 10/10/2016 Angus Livingston

Victoria won't accept being short changed on $1.46 billion Canberra owes the state for the Melbourne port lease sale, Treasurer Tim Pallas says.

He insists Victoria is due the 15 per cent bonus on top of the $9.7 billion sale price, but the federal government only wants to hand over $877 million.

Canberra expects the money from its asset recycling bonus scheme to be used for the Melbourne Metro Rail project, which Victoria has already funded.

"I will be very clear - the federal government will have no role in the Melbourne Metro project," Mr Pallas told reporters on Tuesday.

Victoria wants to use the asset recycling scheme money to fund suburban level crossing removals.

"We're owed $1.46 billion by the federal government," Mr Pallas said.

"Victorians are being short changed yet again."

Mr Pallas called the federal government "mendacious dilettantes" who were hurting the Victorian economy.

"I am absolutely committed to getting our just deserts, to getting these people to honour agreements that they struck with the previous government," he said.

Victoria is the fastest growing state in the nation and gets just nine per cent of federal infrastructure funding despite having 25 per cent of the population.

Federal Treasurer Scott Morrison has previously said the $877 million was set aside for projects Victoria had flagged as needing funding, which included the Metro Rail.

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