Brisbane 2032 Olympic Games would have taken funding hit by $1.4bn

The decision to slash $1.4bn in union perks has saved Brisbane’s 2032 Games from “embarrassment”, according to Premier David Crisafulli.

An artist's impression of Brisbane Arena configured for the 2032 Olympics.

A whopping $1.4bn of Queensland’s budget to build Olympic and Paralympic Games venues was set to be gobbled up by pro-union construction perks, the state government has revealed.

Treasury forecasting, released by the newly-minted LNP government, revealed $1.42bn of the $7.1bn funding envelope would be saved by suspending the controversial Best Practice Industry Conditions (BPIC).

The savings, a fifth of the funding package, will instead be diverted to the scope of works for select venues following the government’s 100-day infrastructure review.

The factors behind Treasury’s workings and how $1.42bn was attributed to BPICs has not been made clear.

Premier David Crisafulli, in a speech to the party faithful on Sunday, is set to declare the existence of BPICs meant the former Labor government had “zero chance” of delivering the 2032 Games on budget.

Brisbane’s 2032 venues could have been in jeopardy if not for union cuts, according to the premier.

“Our government’s decision to suspend Labor’s sweetheart deal means we can deliver the roads and rail projects there were supported to sit at the heart of the original Games bid,” he said.

“Our decision means we can turn the corner on the embarrassment the Games would have been under Labor.”

Deputy Premier and Industrial Relations Minister Jarrod Bleijie this week immediately suspended BPICs, which laid out a bevy baseline of pay and conditions for workers, on future state projects in a move the LNP are adamant will make construction go faster.

Queensland’s trade unions, including the militant CFMEU, say suspending BPICs will harm worker safety, increase strike action, and ultimately harm productivity and is bad for business.

Mr Bleijie insisted the suspension of BPIC would help deliver the Games projects on time within the current budget.

Deputy Premier Jarrod Bleijie has driven the BPIC culls. Picture: NewsWire / Lachie Millard

“Productivity is a key element to delivering projects on-time and on-budget, while protecting wages and safety for workers,” he said.

“We promised Queenslanders we would respect your money and that’s exactly what we’re doing.”

The government remains in the process of selecting a board for its 100-day Olympic review.

Members will be appointed within two weeks, with the review to be finalised by March 12.

Mr Bleijie, who as Infrastructure Minister has been charged with delivering Games venues, revealed last week that three key minor venues had cost blowouts reaching $181m following the early tender process.

The cost of the Sunshine Coast Indoor Sport Centre boomed 50 per cent under BPIC conditions, Mr Bleijie said, to $214m, while the Chandler Indoor Sport Centre rose $61m to $275m.

The Sunshine Coast Stadium that was initially cost at $148m, had increased to $196m.

Mr Bleijie said the three venues, along with all existing venue options, would be revised as part of the Olympic review, and likely be reissued for tender without add-on BPIC costs, dubbed the “CFMEU tax”.

“They just could not be delivered under BPIC provisions,” he said.

“I would expect those types of projects would be reopened to the market.

“I think that will encourage a lot more people who aren’t aligned with the CFMEU to actually put forward propositions or proposals.”

EXISTING GAMES PROJECTS

■ Four athlete villages

- Northshore Hamilton

- Sunshine Coast

- Gold Coast

- Unknown location

■ Barlow Park

■ Brisbane Aquatic Centre

■ Brisbane Arena

■ The Gabba

■ Brisbane Indoor Sports Centre

■ Brisbane International Shooting Centre

■ Brisbane Stadium (Lang Park)

■ Chandler Indoor Sports Centre

■ Chandler Sports Precinct

■ International Broadcast Centre

■ Logan Indoor Sports Centre

■ Moreton Bay Indoor Sports Centre

■ Queensland Sports and Athletic Centre (QSAC)

■ Queensland Tennis Centre

■ Redland Whitewater Centre

■ Sunshine Coast Indoor Sports Centre

■ Sunshine Coast Stadium

■ Sunshine Coast Mountain Bike Centre

■ Wyaralong Flat Water Centre