A lack of any coherent, statewide management plan for congestion is contributing to increased costs and productivity loss, according to a new report released by the Victoria Auditor General’s Office (VAGO).

The VAGO’s report singles out a lack of statewide plan, identifying a lack of any clearly defined strategies and associated agency responsibility for easing travel congestion and managing travel demand.

“Consequently, the state's approach to congestion management remains dominated by expensive supply-side initiatives focused on increasing capacity with little evident attention to demand management alternatives,” the report found.

While the VAGO’s report painted an unflattering picture of the State Government’s management of the issue, it did conclude that uncertainty surrounding Commonwealth contributions were another cause of the lack of any defined plan.

“Recent improvements in planning for road use, land use and public transport have significant potential to assist with alleviating road congestion and improving accessibility and productivity,” the report concluded.