“Good government – that’s winning”: John Pesutto’s mission to be the next Premier

It might sound like a lofty goal amid the ongoing uncertainty gripping the state’s Liberal opposition, but Victoria’s current alternative for Premier John Pesutto knows “good government” is the only way forward. 

While the next election may seem like a long time away in November 2026, it will mark 12 years since the current state government led by former Premier Dan Andrews took office.  

With the state under a significant cloud of rising debt amid the government’s ambitious infrastructure agenda and recent polls suggesting a turn against current Premier Jacinta Allan, Victoria’s appetite for change appears stronger than ever.  

But having lost the past two elections in a landslide, it will take an almighty effort from this Liberal opposition – one which continues to face deep internal divisions – to turn that tide and convince Victorians they are ready for the challenge. 

The one man who knows that better than anyone is Mr Pesutto, who despite facing the mammoth task of needing to unite his party ahead of the next election, is undoubtedly up for that challenge. 

With Victorians having voted for a progressive agenda at the past three elections, Mr Pesutto, who is widely considered a more moderate voice for reason in the Liberal Party, is surely the right person to lead it forward. 

And, despite being at the centre of a defamation battle with ousted Liberal MP Moira Deeming, which is expected to conclude in early December, it’s clear he’s not letting the distraction dull his passion for his agenda for change.

As we approach the two-year mark until the next election, Southbank News caught up with Victoria’s potential next Premier to discuss the road ahead, his vision for Melbourne and his thoughts on repositioning the relationship between Spring St and Town Hall. 

“I do think we’re facing serious challenges, but all of those can be solved,” Mr Pesutto said.

My appeal to Melburnians and Victorians alike is that this government can’t fix the problems they’ve created.

There can be no argument that at the heart of the battle to form the next government will be the issue of Victoria’s debt, which is forecast to grow from $156.2 billion in 2025 to $187.8 billion by June 2028. 

While there are many pressing issues affecting the state and the city, Mr Pesutto is acutely aware that without getting the economy under control, the essential services we all rely on will become increasingly compromised. 

“All of those matters around the management of the budget and the finances are relevant to me because it’s about trying to boost our quality of life and standard of living, and I think we’re suffering because of that,” he said. 

“Health, ambulances, education, roads, housing; all of those things suffer. And we’ve worked very hard to try and draw out that link for people that unless you stabilise debt, taxes will continue to rise. The government doesn’t have a plan for that.”

One place that continues to feel the brunt of these challenges, according to Mr Pesutto, is Melbourne’s CBD, which he holds “growing concerns” for as Victoria’s “economic engine room”. 

While he’s troubled by commercial vacancy rates in the CBD, which continue to track well behind Sydney and Brisbane, he said the lack of investment in the city reflected the state’s delicate financial position. 

“I’m very concerned why we can’t get those vacancy rates down. Work habits have changed, I accept that, but the CBD can’t lose that commercial impulse,” Mr Pesutto said.  

“Capital is mobile as we all know, and it is very sensitive. I’ve been told by business leaders that South Australian Premier Peter Malinauskas tries to court businesses from Melbourne over to South Australia.” 

“What concerns me about that against the backdrop of our poor economic performance by way of tax and debt is that there are a lot of companies that have seen Melbourne as the seat of their operations. They’re now thinking about where to go.”

And while he supports any landlord’s right to transition underutilised commercial buildings in the CBD to housing, for example, he said talks of a second wave of Postcode 3000 shouldn’t be the product of “giving up on the CBD”. 

“The caveat though, and I feel very strongly about this, is if it’s happening because we’re giving up on the CBD being an ever-thriving seat of community, political, social and economic vibrancy for the country,” he said. 

“Melbourne must, in my view, be the driver of economic activity around the country. Historically, Melbourne has been seen as the nation’s financial capital,” adding he was determined for the city to reclaim its title as the world’s most liveable. 

But in his view, this is only going to happen through “a more collaborative” approach between the City of Melbourne and the state government, emphasising that improving safety and security in and around the CBD was paramount. 

Whether it be rough sleeping, drug-use, criminal activity or the recent wave of violent protests, Mr Pesutto said the city couldn’t hope to attract more investment, major events or new residents until these types of issues were resolved. 

“When it comes to antisocial behaviour or trying to address the tragedy of rough sleeping, which just breaks your heart to see – you can’t do that with one level of government,” he said. 

“Let’s be frank about it, whether it’s protests or criminal activity, it’s always a reflection of how well you resource Victoria Police and other agencies of government to deal with anti-social behaviour.”

“If that’s deterring people from coming to the city or employers from investing in our city … we pay a double price for all of that.”  

Mr Pesutto also has similar misgivings about the government’s plan to deal with drug-use, saying that while he had opposed a second safe injecting room for the CBD, it couldn’t be “an all or nothing approach”. 

“You are deploying an enormous amount of resources to perpetuate the cycle,” he said about safe injecting rooms. 

“We’re all trying to solve the problem, but I don’t think that’s the way you get people off that cycle. And so, we’ve talked about hydromorphone treatment, more investment in rehabilitation beds – there are better approaches in our view.” 

Despite the challenges ahead, he said that, if elected, he was determined to address them via a “whole of state approach” to governing, which would only be “enhanced by a more liveable city”.  When it comes to economic revitalisation, he pointed to the growth in AI and robotics as an example of how the state could boost manufacturing in precincts such as Fishermans Bend. 

He also wants to reestablish “order and oversight” over the state’s infrastructure program, and while not yet announcing any specific projects, he’s since revealed that the controversial East West Link proposal would be reconsidered. 

Mr Pesutto would consider scrapping the “exorbitant” Suburban Rail Loop project, which he said the Allan Government continued to pursue at the expense of more acute infrastructure needs of communities in Melbourne’s West. 

“We will still build a lot of things – we have to, as our state is growing,” he said. 

“But clearly the government has overrun on a number of fronts with exploding debt. It’s important to get the sequencing right, and the way we procure them must be carefully planned.”

He added that projects that addressed greater public transport connections to the western suburbs, such as Metro 2, would need to be looked at, which would ultimately benefit the CBD by getting more cars off the roads. 

While Mr Pesutto senses there is a strong appetite for change in Victoria, he said he didn’t want to be “weighed down by the electoral maths” of the challenge ahead and continued to implore his colleagues to pursue the prize of “good government”.  

“This next election will be about issues that will have lasting generational impacts, so I say to my team, victory is not winning, the election is just a step to good government. Good government – that’s winning.” •