In the news: New bike paths & bike hire scheme

A $105 million investment in cycling projects will give Victorians more sustainable transport options across, including the use of a public bicycle hire scheme in Melbourne.

The Minister for Roads and Ports, Tim Pallas, said Melburnians and tourists will be able to enjoy a network of bicycles to make short trips around town under a $5 million Public Bicycle System.

Mr Pallas said the bicycle network also would be expanded State-wide, with new stand-alone paths and upgraded bike lanes.

"The Brumby Government is taking action on transport, so that Victorians can have the best transport network in Australia - and the most sustainable," Mr Pallas said.

"Delivering the best transport system in Australia will mean Victorians have more can spend less time commuting and more time with family and friends."

The $105 million investment in cycling is a key initiative in the Brumby Government's $38 billion Victorian Transport Plan - a plan that will transform Victoria's transport network as well as providing tens of thousands of jobs.

Mr Pallas said the Brumby Government was committed to reducing people's dependence on cars and promoting cycling as a safe and appealing mode of transport.

"The $5 million Public Bicycle System will see around 50 bicycle stations set up at key locations around inner-Melbourne that will house up to 600 bikes between them, offering students, workers and tourists a different and green way to travel around," he said.

"The bike system aims to encourage more people to ride a bike for short trips, offering health and wellbeing benefits as well as helping to relieve pressure on the transport system in the inner-city.

"It will provide a travel option that is faster than walking, and more flexible than public transport."

Mr Pallas said the Brumby Government was working closely with the City of Melbourne to establish the bike system in inner-Melbourne.

"If it proves as popular as these systems have become in Europe and the UK, it could be expanded to create an extensive urban network of low-cost bikes," Mr Pallas said.

"The system will improve the liveability of our city as we grow into the future, and create a unique point of difference for Melbourne as a tourist destination.

"It will also promote cycling as a legitimate form of transport and help create a safer, friendlier cycling environment in our city."

The Public Bicycle System's operations will be subject to a tender process and is expected to be up and running in 2010.

Mr Pallas said the $100 million for upgraded bicycle routes in inner Melbourne, metropolitan centres and regional towns would deliver a world class bicycle network for Victoria.

"The Brumby Government supports Sir Rod Eddington's recommendation that more should be invested in cycling links to support the growing number of people cycling to work," Mr Pallas said.

"Our investment will deliver new or extended bike lanes, improved separation of cyclists and other road users and priority traffic signals.

"We recognise that to give people the realistic option to choose other modes of transport from cars we need to provide the appropriate cycling infrastructure, which is exactly what these projects will deliver."

The Brumby Government will release a State-wide cycling strategy next year.