Council doubles Philip St funding after $5m blow out

THE Gladstone Regional Council has doubled its funding for the first stage of the Philip St Precinct, after the project had a budget blow out of $5 million.

An artists' impression of the Philip St Community Precinct. Picture: contribtued

THE Gladstone Regional Council has doubled its funding for the first stage of the Philip St Precinct, after a detailed costings report found the community health hub 14 years in the making had a budget blow out of $5 million.

The project came within one vote of being scrapped when the seven councillors debated the future of the project for more than an hour on Tuesday.

With concerns for the council's reputation with the federal and state government, and for funding already promised, four councillors voted in favour of committing the $5 million over the next two local government budgets.

Long touted as one of the region's most-needed infrastructure projects, the precinct would be a hub for community services including council's family centres, the Salvation Army and a retirement village.

Kahn Goodluck, who with Rick Hansen and Cindi Bush voted against doubling the council's funding, was disappointed with the lack of information about a project that had been on the cards for more than a decade.

Describing the funding confusion as "unacceptable" Cr Goodluck worried the project would require more money again in future stages.

"I certainly hope for as long as I'm privileged to sit around that table that I never see a scenario like that again," he said.

"The ratepayers of our region expect and deserve a lot better than that."

Member for Flynn Ken O'Dowd and Gladstone Region Mayor Matt Burnett on site at the Philip St precinct where construction started on September 18. Picture: Tegan Annett

Councillors worried if they scrapped the project the Salvation Army would not get the $3 million promised from the Gladstone Foundation for a new facility.

Also potentially on the chopping block could be the Federal Government's Regional Jobs and Investment Package (RJIP) $3 million grant for the precinct's first stage and $26 million from the Federal Government to widen Philip St.

The officer's report to the council warned if the project did not go ahead the council would need to spend $3.6 million to complete the Philip St intersection upgrade.

It also warned not going ahead with the project would hurt the council's reputation with federal and state funding bodies.

Chris Trevor, Peter Masters, Desley O'Grady and Glenn Churchill voted in favour of supplying the extra funding.

The vote had to happen before Thursday, which was the deadline the council had to commit to the first stage of the project to be eligible for the RJIP funding.

The Observer approached the Mayor and Deputy Mayor for comment but didn't get a response before deadline.