Transport Minister Mark Bailey accused of ‘mismanagement’ over $600m Coomera Connector blowout

Transport Minister Mark Bailey has been accused of ‘mismanagement’ after it was revealed the cost of building the Coomera Connector will blow out by more than $600 million.

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THE state government has been accused of “mismanagement” after it was revealed that the cost of building the Gold Coast’s second M1 will blow out by more than $600 million.

The first stage of the six-lane, 45km arterial road, which will run from Nerang to Logan, will now cost at least $2.1 billion, a little short of the $2.4 billion budgeted for the entire project.

Transport Minister Mark Bailey said the state government would put up an extra $316 million, or half of the sudden cost increase, and he has now written to Acting Prime Minister Barnaby Joyce asking for the federal government to contribute the other half.

But a spokesperson for Urban Infrastructure Minister Paul Fletcher said the federal government was not responsible for “mismanagement” of the project.

“The Commonwealth has already committed $750 million to the $1.5 billion Coomera Connector project,” the spokesperson said.

“The Commonwealth has not received any correspondence from the Queensland Government.

“The Queensland Government is responsible for the procurement, management and delivery of this project. The Commonwealth’s commitment is set at $750 million, we do not provide open ended insurance against mismanagement of a project by the state government.”

A business case commissioned by the state government blames increased costs on the construction boom which has spun out of the pandemic. It has led to shortages of building materials being blamed for the blowout.

“We have been caught in the middle of an unprecedented boom in investment in infrastructure projects across Australia,” Mr Bailey said.

“Earlier this month, Western Australia pushed back the start of major infrastructure projects because the national construction market is so competitive right now.

Queensland transport Minister Mark Bailey. NCA NewsWire / Sarah Marshall

“We won’t delay the start of work on the Second M1.”

Mr Bailey said major construction work would begin in early 2022 and he still anticipated the 16km first stage of the Coomera Connector would open in late-2024.

“The Morrison Government knows how important building the Second M1 is given their commitment to it to date,” he said.

“Throughout the pandemic, we’ve shown we can work together delivering major projects to bust congestion and improve road safety for Queenslanders.”

It is the second cost blowout on a major Gold Coast transport project this year.

In April the Bulletin revealed the cost of the 6.7km extension of the light rail from Broadbeach to Burleigh Heads had blown out from $700 million to more than $1.04 billion.

Shadow Transport Minister Steven Minnikin blamed Mr Bailey’s “inability” for the blowout.

“Mark Bailey’s inability to manage major infrastructure projects has now cost the Gold Coast nearly $1 billion,” he said.

“$1 billion could have funded a brand new hospital for the Gold Coast.

“Mark Bailey has been the Minister for Main Roads for nearly seven years.

“Only Mark Bailey is to blame for Bailey’s budget blowouts.”

Gold Coast Federal MP Karen Andrews also weighed in, calling on the state government to “step up and do the work”.

“Unfortunately in Queensland, the state government has a history of making commitments that they are unable to deliver on, and then coming back to the Commonwealth Government for additional support,” she said.

“The clear message that I would give to the state government is that they need to start understanding that they have to live within their means.

“We will do what we can to support them because we are very conscious that the people on the Gold Coast are not disadvantaged.

“But, the Queensland Government needs to make sure that it is stepping up and doing the work that it needs to take, taking the responsibilities that it needs to take to make sure that Queensland continues to function as well as it possibly can.”

Steve Minnikin. (AAP Image/Glenn Hunt)

Karen Andrews. Picture: Liam Kidston

The Coomera Connector has been a long-running issue on the Gold Coast.

The road, formerly known as the intra-regional transport corridor (IRTC), has long been part of the State Government’s future plans to reduce congestion but was dumped by the former Newman government in 2013, against the wishes of the Gold Coast City Council.

The project was restored in 2015 and the Palaszczuk Government gazetted the Nerang to Coomera section in March 2016 and the Coomera Stapylton section in May 2017.

It later became a political football at the 2017 state election when the LNP Opposition pledged to build the project.

Mr Bailey said the project would be facing the delays today if the Newman Government had proceeded with its construction during its time in power.

“The Second M1 would be far more advanced if the Queensland LNP had made it a priority instead of blocking it and not doing any significant planning for it,” he said.

News of the cost blowout follows Bulletin reports earlier this week which revealed the Auditor-General would investigate why the state government took four years to resume land for the Connector.

The delay saw the price of land treble for taxpayers to $60.5 million.

In its largest tangible action on the project to date, the Queensland Government resumed four vast tracts of land adjoining The Surrounds at Helensvale, where it plans to build part of the second M1 and an interchange.

The payout has been described by the opposition as an avoidable planning blunder, which has also cost the city more than 1500 much-needed new homes which were planned for the site.

Property records reveal the State Government, via the Department of Transport and Main Roads, purchased 19.134ha of residential land from Villawood Properties last month, spending more than $60.5m in the process.

Gold Coast Mayor Tom Tate told the Bulletin his view on the project had been “consistent”.

“That is, it is never cheaper tomorrow to build something than it is today,” he said.

“Ratepayers are not financially committed to the Coomera Connector so it is not my place to comment on that project.

“We do financially commit to light rail through the three-tiers-of-government arrangement and I strongly believe that the final stage (Burleigh to Coolangatta via the airport) should be put out to tender while stage 3 (Broadbeach to Burleigh) is being constructed.

“That is the best way to ensure the best value for money for ratepayers and taxpayers.’’

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Originally published as Transport Minister Mark Bailey accused of ‘mismanagement’ over $600m Coomera Connector blowout