Minister knew of ‘cost pressure’ before $864m blowout

Transport Minister Bart Mellish knew the Coomera Connector faced cost issues when he put out a media release three weeks before it was revealed the project price had soared by $864m.

Transport Minister Bart Mellish knew the Coomera Connector faced significant “cost pressures” when he put out a media release three weeks before it was revealed the project price had soared by $864m.

The cost of building the problem-plagued Coomera Connector Stage 1 has blown out from an initial $1.5bn in 2021, to $2.16bn and now more than $3bn.

Mr Mellish last week repeatedly declined to say whether he knew about the latest $864m cost increase when he approved a press release on March 4 about the “$2.16bn Stage 1 project” but on Sunday the minister acknowledged he was aware on March 4 the price of the project – dubbed the “second M1” – was likely to be higher than the original cost.

“I’ve been aware since coming to this job there’s been cost pressures, but what I’ve done since taking over the job is instigated a process whereby the state will secure our share of that increased funding and now I’m asking for the federal government to contribute to their share,” he said.

“A final revised cost estimate of $864m was provided to me in January 2024.

“The press release that you mentioned, that’s to do with the funding for the project rather than the overall cost.”

Transport and Main Roads Minister Bart Mellish at a work site on the Coomera Connector. Picture: Glenn Campbell

Mr Mellish, appointed transport minister by Premier Steven Miles in December, said he was aware during the first week of his new role that the Coomera Connector was one of “a lot” of infrastructure projects facing cost pressures.

“I asked TMR to explore ways to mitigate the cost increase, which included discussions around renegotiating with contractors or reducing scope,” he said on Sunday.

“They advised me this was not viable given the advanced stage of the project and its critical role to reduce congestion in southeast Queensland.

Mr Mellish said additional funding of $432m was confirmed at Cabinet on March 11.

He last week said he had been “open and transparent” by revealing the cost increase before the government handed down its budget.

It prompted opposition infrastructure spokesman Jarrod Bleijie to seize on the latest increase and call for Mr Mellish to be upfront about when he learned of the new price-tag.

“It’s the same excuses that Mark Bailey gave, so nothing has changed now we have a new minister,” Mr Bleijie said.

The state government has approached federal Infrastructure Minister Catherine King about funding its half of the blowout, some $432m, but is yet to receive any commitment.

“I’ve had some initial discussions with the federal government infrastructure projects around the state,” Mr Mellish said.

“It’s one of the ones that’s a key on our list.

“We’ve been expecting to hear from the federal government around their budget time on that and it’s not for me to rush the federal government or push them into I suppose decisions ahead of their due process.”