Cairns water security funding crucially missing in 2024 federal budget
Ratepayers are on track to cough up hundreds of extra dollars annually, with extra money for the city’s water infrastructure project crucially missing in the new federal budget. WHAT’S IN THE BUDGET FOR FNQ.
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Ratepayers are on track to cough up hundreds of extra dollars annually, with extra money for the city’s water infrastructure project crucially missing in the new federal budget.
The 2024-25 Budget, handed down on Tuesday night, failed to include a desperately needed multimillion-dollar injection for Cairns Regional Council’s Water Security Stage 1 Project.
Two years ago the federal and state governments together committed to covering the bulk of the project’s $248m price tag, but inflation was later blamed for that figure being revised to $472m in December – a cost blowout of almost a quarter of a billion dollars.
It left new mayor Amy Eden with a huge challenge to secure an extra $125.8m each from the state and federal governments in this year’s budgets.
If Queensland Treasurer Cameron Dick follows suit in his budget next month, Cairns ratepayers will be slugged an extra $488 per year over 15 years for the critical development, designed to shore up the city’s water supply into the future.
Speaking on her government’s decision to keep the coffers closed, Queensland Senator Nita Green called for honesty from the council on the major cost blowout.
“Our government and the Queensland government committed $215m to the Cairns Water Security Project and Stage 1 has commenced and tenders issued,” the Cairns-based senator said.
“At this stage no additional funding has been allocated but we continue to seek information.
“It is up to council to explain why they are asking for additional funding now and how costs could have blown out more than double.
“It’s up to them to be honest about how the scope of the project has changed, update any business case and complete required environmental assessments.”
Ms Eden has previously said it was council’s “number one advocacy priority” with the hope that extra federal funding would be formally provided in Tuesday’s budget.
Ms Eden did not respond specifically to Ms Green’s call for more details but said it was disappointing the extra funding had not come through.
“Without this additional funding, the cost will fall to our ratepayers and residents who were already experiencing significant cost-of-living pressures,” she said.
“This project has the unanimous backing of council, and is supported by all our local state and federal members of parliament.”
Leichhardt MP Warren Entsch said claims council had not provided the necessary details on the revised project cost was “absolute bullshit”.
“The amount of money that has been spent in the Townsville water system, and the Mackay water system, in the Rockhampton water system – they had a get out of jail free card with the Cairns project. The cost was insignificant compared to these other expenditures,” he said.
“It is number one on my wishlist and commitments – it’s a bloody disgrace.
“(Nita’s) not fighting for it – and I can’t find a single thing she’s actually achieved for the region in this budget.”
Advance Cairns CEO Jacinta Reddan said she would look to the council to provide further information.
“There is therefore some hope for money to flow and that, while this is disappointing, the door is still open,” she said.
The water security stage one project, which will augment drinking water supply from the Mulgrave River with new infrastructure at Gordonvale, is the largest development ever undertaken by council.
Construction is due to start in the coming months and finish mid-2026.
Without the project going ahead, the region is at risk of a drinking water shortage within two years.
Stage two of the project is slated in ten to fifteen years in line with forecasted population growth.
What else is – and isn’t – in the budget for Far North Queensland
Andrew Potts and Mikaela Mulveney
The Cairns region has failed to garner any new funding commitments from the Albanese government’s third budget, which locked-in millions of dollars for already announced projects.
Featured only in the fine print of Treasurer Jim Chalmers third budget on Tuesday night, the Cairns region failed to rate a mention during Dr Chalmers’ speech, which primarily focused on cost-of-living and housing relief.
Funding for the Central Queensland University campus project in Cairns CBD was confirmed in the budget documents after increases in building costs due to inflation risked a cost blowout of millions to complete the project.
Included alongside the major expansion to the Cairns Marine Precinct, $230m over five years from 2023-24 will go towards the delivery of the two major construction projects in the region.
The same, however, could not be said for the significant extra funding needed for the Cairns water security project, with $128.5m being sought from the federal government and the Queensland government after the revised cost of the project nears half a billion dollars.
$38.6m in funding was also confirmed in support of the previously announced Strata Resilience Program in North Queensland which will assist to take pre-emptive steps to future-proof households against cyclones.
Efforts towards the eradication of yellow crazy ant activities in and adjacent to the Wet Tropics of Queensland World Heritage Area, as well as in Townsville, received $6.4m in funding.
Announcing only the second surplus in the past 16 years amid uncertain economic times and an election on the horizon, Dr Chalmers characterised it as a “budget for the here-and-now” and “a budget for the decades to come”.
“More homes means more affordable homes and a better deal for buyers, builders and renters alike,” he said.
The current housing pipeline is backed up (so) we’ve already allocated $3.5 billion to address bottlenecks and slash red tape – and this budget includes another $1 billion to help states and territories build more housing sooner.
“We’re providing $89 million for 20,000 additional fee-free TAFE and VET places to train more construction workers to do the work we’ll need.”
However, Real Estate Institute of Australia Queensland spokesman Andrew Bell said the measures, while welcome, would do nothing to deal with the immediate housing crisis gripping the city.
“Some of these measures are good but there is too much blockage in the bureaucracy whereas we need policies which can get developments underway sooner than later,” he said.
“The level of certification for buildings are of such a high standard now that the average building is just not interested because it takes eight to ten months to qualify and that is too hard and many of those who work in regional areas (across the state) don’t think it’s worth it.
“It’s one thing to throw money at housing and development but if they never land it is of no benefit.”
Mr Bell said measures which would provide immediate benefit would be capital gains tax reform, the slashing of infrastructure charges and government incentives for developers to build affordable housing, along with time-frames to ensure their projects are delivered within five years.
However, in a win for tens of thousands of small business operators across the state, Dr Chalmers announced a surprise continuation of the $20,000 instant asset write-off which was expected to end on June 30, a move which is expected to be welcomed by business groups across the city which had lobbied for the measure.
“We want Australian small businesses to share in the big opportunities ahead as well,” Dr Chalmers said.
“That’s why we are extending the $20,000 instant asset write-off until 30 June 2025, providing $290 million in cash flow support for up to four million small businesses.
Dr Chalmers announced a $9.3bn budget surplus, despite previous years’ budget papers tipping a deficit.
However forward estimates forecast deficits to return across the next four years.
Dr Chalmers said the economic outlook was “framed in fraught and fragile global conditions”.
“The world economy is resilient in parts but subdued overall (and with) inflation lingering in North America, growth is slowing in China and tepid in Europe, tensions have escalated in the Middle East and persist in Ukraine, global supply chains are fragmenting,” he said.
“This uncertainty combines with cost of living pressures and higher interest rates to slow our economy, with growth forecast to be just 1¾ per cent this financial year and 2 per cent next.
“Treasury is now forecasting inflation could return to target earlier, perhaps even by the end of this year (while) at the same time, around 780,000 jobs have been created under this Government, a record for any first term.
“This is stronger jobs growth than in any major advanced economy, real wages are growing again for the first time in almost three years and business investment is now expected to record its longest annual expansion since the mining boom – and we’re addressing the pressures caused by population growth, with net overseas migration next year now expected to be half what it was last year.”
Gross debt will top $904bn this year before increasing past $1tn in 2025-26
Other key points of the budget include:
* $22.7bn across the next decade for the government’s Future Made in Australia manufacturing policy.
* The impact of the government’s revamped stage 3 tax cuts which will come into effect on July 1 and will see every tax payer receive some financial relief.
* A $300m energy rebate for power prices, with small businesses receiving a further rebate.
* $3bn towards cheaper medicine.
*The capping of indexation of student debt, wiping $3bn.
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Originally published as Cairns water security funding crucially missing in 2024 federal budget
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