No details in federal budget about SEQ’s $1.8b City Deal

There is no new funding in Tuesday’s federal budget to back the $1.8 billion south-east Queensland City Deal designed four years ago to help the region cope with population growth.

The deal between the three levels of government was signed in 2019, promising to expand the south-east Queensland economy’s revenue by $58 billion by 2041.

Brisbane had the highest population growth rate (2.3 per cent); higher than Perth (1.5 per cent), Melbourne (1.1 per cent), Adelaide (1.1 per cent) and Sydney (0.7 per cent) according to April 2023 Australian Bureau of Statistics research.

South-east Queensland is arguing for a set funding deal from local, state and federal government to cope with population growth.Credit: Louie Douvis

The SEQ City Deal ties the three levels of government to specific contributions to selected projects over 20 years in a 34,000-square-kilometre area where one in seven Australians live.

High population growth meant south-east Queensland on Friday got another city, with the fast-growing Moreton Bay and its 484,428 residents (2021) becoming the region’s sixth city on Friday.

But the final deal has still not been signed.

In March 2022, previous prime minister Scott Morrison announced a list of 31 proposed projects and productivity improvements which might be funded in the 20-year deal.

Prime Minister Scott Morrison, Queensland Premier Annastacia Palaszczuk and Brisbane lord mayor Adrian Schrinner signing the SEQ City Deal at the Gabba in March 2022.Credit: Tony Moore

But the three levels of governments had yet to debate the specific projects and the timeline for funding and a City Deal Implementation Plan was not signed.

Proposals included $450 million extra for the new Brisbane Metro busway at the Gabba, highway, rail, tourism and conservation measures.

It proposed $3 million to begin a First Nations Cultural Centre.

Federal Treasurer Jim Chalmers’ mini-budget in October 2022 allocated $363.9 million over four years in general, but specific funding depended on a City Deal Implementation Plan meant to be finished “by the end of December 2022”.

Treasurer Jim Chalmers announced $393 million over four years in the October 2022 mini-budget for south-east Queensland $1.8 billion City Deal. Credit: Lukas Coch

That has still not been signed.

Some projects – such as the $190 million green bridge from the Brisbane CBD to Kangaroo Point – are now under construction, but others remain unclear.

Federal Infrastructure Minister Catherine King declined questions, but a spokeswoman for her department said details would be provided soon.

Queensland’s Planning Minister and Deputy Premier Steven Miles said the City Deal Implementation Plan “would be signed in the coming weeks”.

“Several factors have affected the timing, including a change in federal government,” Miles said.

“This has not impacted progress towards delivery of projects. All deal partners are committed to delivering the deal and there have been no variations in the list of projects.”

The SEQ Council of Mayors the City Deal Implementation Plan – laying out which projects will be funded and when “is expected to be launched soon”.

The SEQ City Deal follows initiatives in the United Kingdom in 2012, which have been adopted in Australia to get local, state and federal governments to commit to projects in growth areas.

In March 2022, the $1.8 billion was $667.77 million from the Commonwealth, $618.78 million from Queensland and $501.62 million from the Council of Mayors (SEQ).

Federal Labor promised to improve City Deals when it won office in May 2022.

There are now nine deals operating throughout Australia.