Premier Daniel Andrews said following the federal budget’s release, his government’s $1.45 billion regional rail revival plan, which included an upgrade to the Warrnambool service, would have to be reviewed.

Wannon MP Dan Tehan said a $10 billion rail passenger fund announced in the federal budget could fund the upgrade and urged the state to co-operate. However, that fund does not kick in until the 2019/2020 financial year, the budget papers reveal.

Under the federal budget, the state government was allocated $1 billion for infrastructure projects, with more than half of that money linked to specific works, including a $100 million rail line duplication between Waurn Ponds and Geelong.

Transport Minster Jacinta Allan said Mr Tehan had failed his community, and the money was not enough to cover the regional rail package.

“Dan Tehan has been running around his community waving a petition around encouraging people to sign, calling for more money from federal and state governments for regional rail,” she said. “Tuesday’s budget showed that he has failed. He has failed his own community. He could not convince his own federal government to put a single dollar into the Warrnambool line.”

Ms Allan said the premier was correct in saying the regional rail revival package was at risk.

“We had a $1.45 billion package of works that was about infrastructure and signalling and track upgrades across every regional passenger line in regional Victoria,” she said.

“That’s what we are entitled to under the asset recycling initiative. That’s what the budget tore up, the asset recycling funding. They took that away from Victoria and have replaced it with this $1 billion of which they’ve allocated $500 million to some projects.

“You can’t do $1.45 billion worth of works with $1 billion.”

Mr Tehan urged Ms Allan to leave politics at the door.

“I am absolutely confident that if the state government will work with us, co-operatively, leaving the politics out of it, we will get a positive outcome,” he said. “There is a $10 billion fund which has been announced for passenger rail. Please just get us the costings and the plan, work with us and we can do this in partnership together.”

Mr Tehan said it was the state government that had failed the south-west community because passenger rail was its responsibility.

“They are the ones who have failed,” he said. “We are stepping in to make sure that they don’t continue to keep failing.”