Full scale of Queensland transport project cost blowouts won’t be known for weeks

The full scale of cost blowouts of key Queensland transport projects won’t be known for weeks, with Transport Minister Mark Bailey pointing to “longstanding protocol” for keeping the extent of price increases close to his chest.

The full scale of cost blowouts of key Queensland transport projects won’t be known for weeks, with Transport Minister Mark Bailey pointing to “longstanding protocol” for keeping the extent of price increases close to his chest.

It comes as Treasurer Cameron Dick declined to reveal when he first knew the cost of delivering some of the state’s biggest projects had increased by billions of dollars.

Numerous projects are now at risk after the federal government swung the axe on $200m worth of infrastructure and put a looming question mark over $3bn worth of road and rail plans, with Mr Dick saying the pipeline of spending would have to be “reprofiled”.

The state government still holds out hope it can renegotiate with their federal counterparts after the major decisions have been made, with a delegation led by Deputy Premier Steven Miles to head to Canberra at the end of November.

Queensland Transport Minister Mark Bailey with Treasurer Cameron Dick. Picture: Dan Peled / NCA NewsWire

Opposition deputy leader Jarrod Bleijie accused the government of being part of a “charade” alongside the federal government and picking a fake fight after failing to go in to bat for the state for 180 days.

Mr Dick said Queensland, as outlined in its latest budget, will fund the increased costs of projects and the state was asking for the federal government to do the same.

“Significant (cost) escalations have been happening over time for all sorts of projects. But the fundamental principle for Queensland is we fund into escalation. That’s what we do as a state,” he said.

The controversial infrastructure review by the federal government exposed billions worth of cost overruns after the Commonwealth confirmed it would be tipping in $1.75bn extra into the originally $2.6bn Gold Coast Faster Rail project.

It’s expected the project is now set to cost closer to $5bn.

Mr Bailey, in a statement, said the longstanding National Partnership Agreement on Land Transport Infrastructure with the Commonwealth had been in place for decade and under the rules any changes in scope or cost escalations must be approved by both sides before being made public.

The agreement also notes “states will be responsible for monitoring and keeping the Commonwealth informed of anticipated over and under spends for individual Projects in the State Program”.

“Once we receive formal confirmation of approved funding (at the Commonwealth Government’s MYEFO), we will progressively update published costs,” he said.

The mid-year economic fiscal outlook for both the federal and state government’s will take place in December.

Mr Dick on Friday declined to say when he was informed projects like the Rockhampton Ring Road, Centenary Bridge Upgrade, Gold Coast Faster Rail or the Coopers Plains Boundary Rd level crossing had blown out extensively.

He argued negotiations about the projects had been between Transport Minister Mark Bailey and the federal government, and that the state was unable to settle its final investment position and the scope of what would be built until it knew what Canberra had decided.

“We’re going to work through (the cost of Gold Coast Faster Rail) now that we have the funding from the federal government, but if the money hadn’t come through, then the project may not have proceeded in that form,” Mr Dick said.

“So it may have been a different project, or it may not have proceeded in any form.”