Nine Queensland infrastructure projects have been cancelled and several others have had federal funding paused after a budget blowout on Commonwealth spending.
Key points:
- The Commonwealth has axed 50 "high risk" infrastructure projects across all states and territories
- The Queensland projects include the New England Highway upgrade and the Mooloolah River interchange
- Five other projects will be put on hold until more planning work is done
Infrastructure Minister Catherine King announced the government's response to an independent review of the infrastructure investment program this morning.
It found the existing pipeline of 274 national road and rail projects were undeliverable within the current budget allocation.
Ms King said the Commonwealth had axed 50 "high-risk" infrastructure projects across all states and territories due to the possibility of cost blowouts or delays.
Nine Queensland projects were among them, and a further five will be put on hold until more planning work is done on how much they will cost, including the Sunshine Coast rail extension to Maroochydore and the M1 Daisy Hill to Logan Motorway.
The direct Sunshine Coast rail line was pitched as a key infrastructure project for the Brisbane 2032 Olympic Games, but Ms King said there was no "confidence or assurance" in its cost.
"To take that project to Maroochydore … costs are three times higher, billions of dollars higher than previously stated," she said.
Devastated residents likely won't get resumed homes back
Jason Savanh had his beloved Sunshine Coast home resumed for the now-axed Mooloolah River interchange project.
The major road upgrade had been planned for more than a decade, aimed at improving traffic bottlenecks in the booming region.
Mr Savanh took a compensation offer from the state government, moving from the coast to Burpengary, near Caboolture, in February this year.
"The old house was convenient, out of the way, [it was] a small house … coastal living," Mr Savanh said.
"It was a walk away to [the] water … now I haven't been to the beach all this year."
He said it was "disappointing" that he may have lost his house for nothing.
"I haven't settled in my new house yet, it's just a shame for me to move from the Sunshine Coast."
Mayor of the Sunshine Coast Mark Jamieson said the council was "very concerned" that two critical transport projects — the Mooloolah River Interchange and an upgraded road intersection at Caloundra — had lost funding.
"Both of those projects are aimed at reducing traffic gridlock and helping the Sunshine Coast cope with the growth we've got now, but also the growth we're going to continue to see into the future," he said.
"If that is not consistent with national priorities, I'm not sure what is."
'We do not agree with this plan'
Queensland Premier Annastacia Palaszczuk and her government have been particularly critical of the funding overhaul.
Speaking in state parliament, the premier hit out at the federal government, labelling the "cuts" as "outrageous".
"I want to make it very clear again for Minister King that this infrastructure review does not have our cooperation," she said.
"We do not agree with this plan, to say otherwise is dishonest."
She said Queensland was both the most decentralised and fastest-growing state, with the longest road network in the nation.
"We understand the cost of freight is critical to inflation and the cost of living," she said.
On Tuesday, Ms Palaszczuk wrote to the prime minister after the federal government provided its final position on the infrastructure review at the weekend.
She has also asked Deputy Premier Steven Miles to lead a delegation of Queensland mayors to Canberra to meet with Ms King.
Treasurer Cameron Dick said the government "has not and will not cooperate to support Catherine King's cuts".
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Federal government calls out 'unusual information'
Ms King said Queensland was still receiving the same amount of funding and suggested the state government was "confused" about the changes.
"The amount of money that Queensland receives has not been cut at all," she said.
"We have gone back and forth over the last few weeks with states and territories, there are no surprises for them and should be no surprises for them in any of the information we're releasing today.
"There appears to be some confusion on behalf of the Queensland government about this.
"I think they have been given … some unusual information, it would appear, that does not accord with what we have told them, very clearly," she said.
Fellow federal minister Murray Watt said he was taken aback by the Queensland government's criticism.
"I'm a bit surprised that the Queensland government isn't happy with receiving $2 billion dollars in extra funding," he said.
"That extra funding will allow 15 projects across the state to go ahead, despite big cost blowouts in some cases," he said.
Eleven Queensland projects have been given the green light to proceed with additional funding, including the Logan-Gold Coast Faster Rail and the Rockhampton Ring Road.
'Teams of contractors' were ready to go
Australian Constructors Association chief executive Jon Davies said the announcement was a shock and a major blow for the construction industry.
He said there were "teams of people" ready to begin work on the axed Mooloolah River Interchange.
The Queensland government has already acquired about 130 properties around Mooloolaba and Mountain Creek for the first stage of the project.
"We've got teams of contractors ready to go now, ready to work on the tenders on this project," Mr Davies said.
"We need some certainty as to whether that's going to happen or not so we can re-allocate those resources if necessary."
Mr Davies said projects with paused funding may become untenable.
"These delays will just put even more pressure onto government budgets," he said.
"If things are delayed – nothing ever gets cheaper over time, it's only going to get more expensive."
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2023-11-16 05:24:35Z
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