$400m infrastructure projects axed as government feud deepens

Negotiations over South East Queensland’s landmark City Deal have stalled, with $400m in projects axed amid a deepening divide between the State Government and the Commonwealth.

Almost $400m of infrastructure projects have been axed from South East Queensland’s landmark City Deal amid a worsening feud between the state and Commonwealth governments.

Negotiations over the deal – which would tie in three levels of government to backing a 20-year pipeline of infrastructure projects including for the Olympics – have stalled, with Deputy Premier Steven Miles now accusing the federal government of attempting to short-change Queenslanders.

He said projects which had failed to make the cut in the tweaked City Deal include the Maroochydore Convention Centre, The Mill at Moreton Bay and Wellcamp Entertainment Precinct in Toowoomba – which along with other axed projects are worth about $400m.

Mr Miles said the proposed deal would deliver about $400 in per capita funding – well below the average $1500 spent in deals already signed with eight other Australian cities.

Deputy Premier Steven Miles during a Covid announcement on Sunday. Picture: John Gass

Last month the federal government accused the state of going missing, despite a final draft being tentatively backed by the Council of Mayors.

The last meeting relating to the stalled deal was held on July 15.

Mr Miles has written to Cities Minister Paul Fletcher proposing to meet next month.

The signing of the South East Queensland deal is about one year behind schedule, with negotiations which were supposed to take between 12 and 18 months now ongoing for two-and-a-half years.

Mr Miles said the state was eager to negotiate and sign a “fair deal” as soon as possible.

“The current proposal includes less investment and fewer projects for South East Queensland and the Morrison government expects Queensland taxpayers to pay most of the money back through a GST clawback,” he said.

“It’s now time for Queensland industry and community to tell us whether they think the Morrison governments proposal is a good deal for South East Queensland.

“I urge the Morrison Government to join us in engaging meaningfully with community, civic leaders and industry to agree on the best deal possible for Queensland.”

Mr Fletcher said the Morrison Government was investing billions in infrastructure over the next decade, including $1.6bn for new projects in 2021-22.

“We have offered a package of projects for the SEQ City Deal to the state government and the Council of Mayors (SEQ), based on their requests and after years of discussion,” he said.

“The Council of Mayors (SEQ) has replied with in-principle support. However, the state government has not provided agreement on any project.

“Other cities across Australia have been benefiting from the $8bn in city deal funding from the Morrison Government for years. The Queensland Government has been the slowest to deal with.

Mr Fletcher said of the state government: “Instead of constructive engagement, they dither and delay, while playing political games that are to the detriment of the people of Queensland.”

“The Morrison Government has been ready to deliver for the people of Queensland for more than two years. Now it is time for the state government to step up and deliver this deal.”