Billions in roads, rail to be cut – but some QLD projects given lifeline

Major Queensland projects worth billions of dollars have been delayed while nine worth $200m have been axed by the Albanese government.

• Opinion: People will die because of these decisions

The federal government has swung the axe on more than $200m on major Queensland infrastructure projects and put a looming question mark over a further $3bn worth of road and rail projects including a major Brisbane 2032 Games legacy project.

A war of words between the state and federal Labor governments exploded on Wednesday after a controversial review of infrastructure projects was released by federal minister Catherine King – with Premier Annastacia Palaszczuk slamming the result as “outrageous”.

Queensland was hit with the highest amount of projects delayed indefinitely – including the Sunshine Coast Rail extension, the Inland Freight Route, Pacific Motorway upgrade from Daisy Hill to Logan Motorway, the Cairns Arterial Road duplication and the Bribie Island Road upgrade.

The state was also hit with $205m worth of cuts including the major $160m Mooloolah River Interchange – for which more than 100 homes have already been resumed and about 300 people dislocated.

There were eight Queensland projects cut entirely including two commuter car parks at Beenleigh and Loganlea, Emu Swamp Creek dam support infrastructure and some regional roads, while question marks remain over how and when almost $9 billion in Bruce Highway funding will be rolled out.

But the federal government handed over an additional $2.5bn to save projects which suffered cost blowouts, including $1.7bn extra for the Gold Coast faster rail.

The announcement of cuts and delays prompted an explosive outburst from Queensland Treasurer Cameron Dick, who rejected claims from Infrastructure Minister Catherine King that there was co-operation with the states.

“Our government has not and will not co-operate to support Catherine King’s cuts … Treat Queensland more like Qantas and less like Qatar,” Mr Dick said in a pointed jab at the surrounding Ms King’s controversial decision not to grant additional flights to the Middle Eastern airline.

“No state has the fiscal capacity to fund the projects the federal government cuts. It can’t be done.”

Ms Palaszczuk said the federal government’s infrastructure cuts “outrageous” and that it was dishonest for Ms King to suggest there was co-operation from the state.

She said the Commonwealth collected 80 per cent of taxes and insisted Queensland would not accept cuts to projects including upgrades on the Bruce Highway.

“Our officials have been engaging to make that position clear,” she said.

Beenleigh commuter Bianca Sellar said she was disappointed to hear the $30m Beenleigh Park n ride upgrade was one of the cut projects.

She said she was often forced to park wherever she could – even if it meant copping a fine.

“I have missed my train before because of the lack of parks,” she said.

“If there were more parking you’d just be able to get straight in and hop on the train.”

She also said safety was a concern, as she was often arriving home from work in the city as late as 11pm.

Premier Annastacia Palaszczuk labelled the funding cuts “outrageous”.

“They’ve got designated parking about half a kilometre away, but late at night that’s not safe,” she said.

“There’s not enough parking for the amount of people that travel and it makes it really hard.”

The state government admitted it had no contingency plans to handle the cuts – with Deputy Premier Steven Miles revealing the state was not considering which projects it could fund itself.

“We haven’t looked at that yet because at this stage our intention is to follow through with the with the original plan,” he said.

But Ms King accused Queensland of being “confused” and insisted that while projects were cut, there were no cuts to funding and $2.5bn in funds to help with cost pressures.

Ms King said there had been “consultations with the states and territories, but not always agreement”.

She said the infrastructure pipeline had been left in a “sad and sorry state”.

“It’s clear that the previous government deliberately set about announcing projects that did not have enough funding and they could not be delivered which can only be described as economic vandalism,” she said.

There will be $8.8bn in funding for the Bruce Highway lumped into three “corridors”, south, central and north, where it will be left for the State Government to decide which upgrades go ahead and when based on priorities.

But if there are any cost over runs, the state government will have to seek further funding which may not be granted at an 80-20 split but negotiated on a case-by-case basis.

Prime Minister Anthony Albanese’s government has axed nine major Queensland projects. Picture: Martin Ollman

Ms King said there would no reduction in funding for the Bruce Highway, but she would not commit to keeping the same time frame for delivery or ensuring the scope of the projects remained the same.

Opposition infrastructure spokeswoman Senator Bridget McKenzie said Ms King was shifting the responsibility of making hard decisions on the Bruce to the state government.

Member for Wide Bay MP Llew O’Brien, whose Right to Information search recently revealed almost half the Bruce Highway only had a two-out-of-five star safety rating, said the major arterial road had been left with even more uncertainty.

“If the infrastructure costs more, who is going to pay for it. There needs to be clarity around these reports – lives depend on it,” he said.

Member for Fisher Andrew Wallace said he and the people dislocated to make way for the now-cancelled Mooloolah River Interchange were “incandescent with rage”.

“The federal Labor government talks about providing social and affordable housing to people, but then more than 300 people have been evicted from their homes for a project that now is very likely not going to go ahead,” he said.

RACQ spokesman Joshua Cooney urged the federal government to reverse its decision to split funding with the state 50-50 instead of 80-20.

“At a time when we’re seeing incredible population growth, more interstate road-based tourism and preparing for the Olympic and Paralympic Games, Queensland needs more investment, not less,” Mr Cooney said.

Deputy Premier Steven Miles.

Queensland Treasurer Cameron Dick.

DAY OF RECKONING FOR INFRASTRUCTURE CUTS

Billions of dollars in cuts and delays to road and rail projects are expected to be unveiled on Thursday as details of the Federal Government’s infrastructure audit are released, but a Logan-Gold Coast rail upgrade, $347m for the Rockhampton Ring Road and a Coopers Plains level crossing removal have been given a lifeline.

It still leaves question marks over other major projects including some upgrades to the Bruce Highway, the $3.2bn Sunshine Coast Rail, as well as upgrades to the Centenary Highway, Gateway Motorway and regional roads.

The full extent of the cuts will be revealed for the first time on Thursday when Infrastructure Minister Catherine King releases the updated infrastructure pipeline.

The report recommends 82 projects across the country to be cut and another 36 which should be delayed pending further planning.

Infrastructure Minister Catherine King. Picture: NCA NewsWire / Martin Ollman

It is understood that there have been no cuts to the overall value of $120bn infrastructure pipeline, but Ms King has flagged there were at least $33 billion in cost overruns identified in the report which needed to be dealt with.

There will be additional funding provided to some projects to ensure they go ahead, others will proceed as planned, some projects will be delayed while business cases are developed and there will also be cuts.

Ms King said the pipeline the Albanese Government inherited could not be delivered, while the review found that some projects funded “do not demonstrate merit”.

She said the government would deliver infrastructure that “improves lives”.

“To do this, we need an infrastructure program that is fit for purpose, fiscally responsible and above all, deliverable,” Ms King said.

“With the co-operation of the states and territories we now have a forward plan of projects that are properly planned and targeted to unlock significant economic, social and environmental objectives.

“We are delivering infrastructure that creates jobs and helps wages grow, and makes our communities better connected and more liveable.”

She confirmed $1.75 billion for the Logan-Gold Coast Faster Rail, $46.5m for Boundary Road level crossing removal in Coopers Plain and $347 million for Rockhampton Ring Road had received no cuts and were receiving additional funding to deal with cost overruns.

There will be other projects which were also going ahead in full or with additional funding.

But there about 130 Queensland projects, worth $15bn, that will have their fates revealed on Thursday.

Ms King commissioned a 90-day audit into the infrastructure pipeline in May, but the results have been kept under wraps since August while she consulted with the state and territory governments.

It has sparked the first major conflict between the state and Commonwealth governments since the election Labor won the federal election in May last year.

Queensland Treasurer Cameron Dick has warned the Albanese Government to look to southern states for savings, while Deputy Premier and Infrastructure Minister Steven Miles said scrapping planned tax cuts for wealthy households would be a more effective way to tackle inflation than axing Queensland road and rail projects.