Transport Minister Mark Bailey defends Cross River Rail budget blowout

Transport Minister Mark Bailey has defended the $960m Cross River Rail blowout, saying the economic turmoil of the last three years had impacted all major projects.

Anyone promising to build a mega project on time and on budget amid the turmoil of the last three years is a “bulls**t artist” Transport Minister Mark Bailey has declared, as he defended the $960m Cross River Rail blowout.

He was adamant also that the delays and cost blowouts miring Cross River Rail won’t be repeated across Queensland’s significant construction pipeline — which includes billions in dollars for Olympic Games, energy, housing, hospital and transport projects.

Mr Bailey also said the government did not expect “any further movement” on the timing and price tag of the 10.2 kilometre rail line from Dutton Park to Bowen Hills.

But the independent analysis ordered by the state government into Cross River Rail won’t be released publicly.

The state government on Friday revealed the cost of Cross River Rail had increased by $960m, pushing the total budget from $5.4bn to $6.3bn.

Transport Minister Mark Bailey says future projects won’t be affected by budget changes as much as Cross River Rail has. Picture David Clark

It was noted about $848m of the extra money was needed to cover increased costs of the project while the other $112m was to acquire extra land at Roma St.

Cross River Rail services will now begin in the first quarter of 2026 instead of 2025, with construction to be done by early 2025 instead of late 2024.

Mr Bailey, fronting the media again on Saturday, said the time delay of three extra months was “pretty minor” in the context of the size of the project.

“Anyone who promises to bring, on time and on budget, a mega project given the events of the last three years is absolutely a bulls**t artist,” he said.

But Mr Bailey said he didn’t expect the government’s impending pipeline of work to be affected by inflation, supply chain issues, and the at-times catastrophic weather of the last three years.

“I expect that all of those things have either faded or are fading and that will help us in terms of our construction tasks going forward,” he said.

Opposition Leader David Crisafulli said blowouts “of this scale have to be avoided”, slamming the government for not having more “discipline when it comes to project management”.

Infrastructure Australia in its latest market capacity report had warned the sector was “at capacity” and it was “no longer a question of if a project will slip” but a case of when, at what cost, and by how long.

“The culmination of today’s difficult market conditions means that projects are being delivered in a reality that is vastly different than planned,” the report stated.

“The likely result is a dramatic slowing of progress, not by choice and therefore not by plan.”

The state government’s impending pipeline of work include a $2.7bn demolition and rebuild of the Gabba, the $2.5bn federally-funded Brisbane Arena and $1.87bn for other stadium projects.

There is also $5bn for the 1100km Copperstring transmission project which sits within the $62bn energy plan that includes two major pumped hydro projects, alongside other large rail, road and hospital builds.