Bombshell email reveals reason for CopperString cost blowout

Treasurer David Janetzki’s claim Queenslanders will be saddled with Labor’s $5bn CopperString blowout has been slapped down by the government-owned-corporation delivering the project.

Map of the proposed CopperString transmission line. The Reid River realignment highlighted in red.

Treasurer David Janetzki’s claim Queenslanders will be saddled with Labor’s $5bn CopperString blowout has been slapped down by the government-owned-corporation delivering the project, a bombshell email reveals.

CopperString proponent Powerlink wrote to stakeholders after Mr Janetzki on Tuesday said the project was now slated to cost $13.9bn due to poor planning by the previous Labor government.

In the email, seen by The Courier-Mail, Powerlink offers to “provide clarification” around the jaw-dropping new cost.

‘This $13.9bn figure does not reflect an increase in cost against the original scope of delivering the backbone of the project, rather it reflects a potential new future scope which includes major network extensions required to connect mining and renewable energy projects,” it read.

Queensland Treasurer and Minister for Energy David Janetzki. Picture: Dan Peled

“Following the previous government’s acquisition of the CopperString project, Powerlink was tasked with delivering the 840km backbone connection between Townsville and Mount Isa.”

Notably, Powerlink says this backbone connection “is the scope we have continued to progress with the total construction cost to completion estimated at $8.2bn”.

That revelation indicates taxpayers will not pay the $5bn cost increase claimed by Mr Janetzki on Tuesday.

Mr Janetzki had denied inflating CopperString’s figures to include infrastructure mining companies would pay for, saying the $13.9bn figure was a projected cost burden to Queenslanders.

“Obviously, the private sector will play its role, and that now is what QIC is tasked with achieving,” he said.

“CopperString should not cost $14bn and the only reason it does is because the former Labor government mismanaged it.”

He said the state government would offer an expanded funding package for early works which he said will have “record capital investment.”

North West industry advocates fear the state government’s inflated figure is paving the way for the western link between Hughenden and Mt Isa to be axed after the eastern section, from Hughenden to Townsville, was built.

Flinders Shire Mayor Kate Peddle said cash for the eastern section needed to be provided in the June state budget.

Flinders Shire Mayor Kate Peddle and Queensland Premier David Crisafulli. Picture: Facebook

She said there were “pissed off” small businesses that invested up to $100,000 to prepare to work on the transmission line.

“We need some certainty around when that’s going to start again because we have businesses that have been ramping up, investing in themselves, getting ready for this project to commence now, and we’ve hit the pause button again,“ she said.

“So there’s a lot of uncertainty in our communities, from the really small mum and dad businesses that have backed themselves to be a part of this project that are now wondering ‘what the hell is going on?’”

Electrical Trades Union state secretary Peter Ong accused the government of “betraying” Queenslanders by privatising part of the network.

“Despite all the rhetoric and the hand flapping and ‘we have no plans for privatisation’, the LNP have taken less than six months to revert to business as usual,” he said.

“The news that the critical multi-billion dollar CopperString 2032 infrastructure project will be sold off, handed up to private investors should send shockwaves through Queensland.

“The privatisation of transmission infrastructure, or the poles and wires, is the dumbest privatisation of all.

“It is purely a philosophical decision and will ultimately cost Queenslanders dearly.”