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Port funding battle intensifies in Vic gov

AAP logoAAP 22/09/2016 Helen Velissaris

Victoria's state government has accused the opposition of siding with its federal counterparts over funding entitlements linked to the $9.7 billion Port of Melbourne lease sale.

The state government expected to receive about $1.4 billion (15 per cent of the asset sale) from the federal government as part of its asset-recycling scheme.

But the federal government claims Victoria didn't apply or get approval before the June 30 deadline for the funds.

Victorian Ports Minister Luke Donnellan has accused Opposition Leader Matthew Guy of staying silent on the matter.

"Matthew Guy is backing his Liberal mates in Sydney over hard-working Victorians," Mr Donnellan said in a statement on Thursday.

Mr Guy hit back, saying he would be happy to speak to the federal government about the matter if need be.

"If there's money owed to Victoria, it should come and it should come in full," he told reporters on Thursday.

He also criticised Victorian Treasurer Tim Pallas' handling of the application process.

Mr Pallas sent in an application one day before the deadline, which the federal government claims wasn't enough time to assess the proposal.

"I think Tim Pallas has not asked for this properly, Mr Guy said.

"I think he's probably stuffed up the forms, stuffed up the way, stuffed up the process."

Federal Treasurer Scott Morrison has said $877.4 million which was initially offered in April as part of the asset-recycling scheme for Victoria will still be available.

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