Light rail limbo: Feds baulk at possible multibillion-dollar blowout

The federal government has refused to commit to a funding contribution for the fourth stage of the light rail to the Gold Coast Airport amid fears the project could cost up to $7.6 billion.

Federal Infrastructure Minister Catherine King in Queensland this week. Picture: Lyndon Mechielsen

The federal government has refused to commit to a funding contribution for the fourth stage of the light rail to the Gold Coast Airport amid fears the project could cost up to $7.6 billion.

Infrastructure Minister Catherine King also said the Albanese government was yet to agree to an increased contribution for the Sunshine Coast direct rail while declaring the Commonwealth was committed to providing $3.5 billion for the 2032 Games and Brisbane Arena construction.

State Transport Minister Bart Mellish this week revealed the cost of the Burleigh to Coolangatta tram route fell in a hefty range of between $3.1 billion and $7.6 billion as the Miles government said it would progress a business case for the light rail project to be completed by late next year.

He said the government was eager to closely assess the cost benefit of the tramline’s stage four build, while Ms King deflected questions about the federal government’s plans to support the costly extension.

“A business case needs to go to Infrastructure Australia and they will provide the Commonwealth advice as part of our budget processes for investment — that is the way infrastructure investment should work,” she said.

“Gone are the days where we have press releases announcing money for projects that we do not know how much they’re going to cost.”

Ms King also said the federal government was considering the request from the Miles government to increase its contribution from $1.6 billion to $2.75 billion for the first stage of the Sunshine Coast direct rail.

“We’re working our way through the requests from the Queensland government in the upcoming budget,” she said.

“We already have $1.6 billion on the table for Sunshine Coast rail, but I’m not going to pre-empt budget decisions.”

The Infrastructure Minister also said the intergovernmental agreement to contribute to Olympic and Paralympic venues will need to be renegotiated after the Miles government’s decision to move the Brisbane Arena away from above Roma Street station.

But Ms King insisted the $3.5 billion pledge for the Games was guaranteed.

“We’ve got the commitment to Brisbane Arena and we want to see that built,” she said.

“We’re just working our way through the business case of that which includes the moving of it from Roma Street station.”