Premier Annastacia Palaszczuk says she knew about $2.4 billion blowout

The Premier has been forced to admit she knew of a $2.4 billion blowout in a flagship program before the previous figure was released.

Premier Annastacia Palaszczuk (front right) with member for Gaven Meaghan Scanlon and other ministers welcome five new G:Link trams to the Gold Coast on Monday. Picture: Glenn Hampson

Premier Annastacia Palaszczuk has admitted she knew of the $2.4 billion blowout to Queensland’s flagship train manufacturing program before a press release was circulated with the previous figure.

Transport Minister Mark Bailey faced widespread scrutiny this month for quietly updating the cost of the Queensland Train Manufacturing Program, which surged from $7.1 billion to $9.5 billion.

On June 30, a government media release was distributed about the program — a key election pledge to build 65 trains in Maryborough.

The release, which included the names of both Mr Bailey and Ms Palaszczuk, revealed Downer as the company to secure the $4.6 billion for the first 15 years of the project.

The first line of the media release said the rail manufacturing program would cost $7.1 billion but Mr Bailey was forced to admit two weeks later he already knew the projected cost had increased by a third to $9.5 billion.

Premier Annastacia Palaszczuk inspects a new Gold Coast tram with Deputy Premier Steven Miles (left), Transport Minister Mark Bailey and Member for Gaven Meaghan Scanlon. Picture: Tertius Pickard/NCA NewsWire

Ms Palaszczuk was asked last Monday if she was told about the blowout ahead of the press release being published, and responded: “Not to my knowledge, I’ll have to go and double check.”

But at a press conference this morning on the Gold Coast, Mr Bailey was asked again if he had told Ms Palaszczuk about the blowout ahead of the release going online.

Ms Palaszczuk stepped forward to respond and confirmed she had been told about the staggering increase.

“Yes, I went back and double checked and, yes, the Minister did (inform her about the cost increase before the release was published),” she said.

“The Minister has made a statement in relation to that and it’s been rectified.”

During the press conference featuring a number of senior ministers ahead of community cabinet, Mr Bailey was apologetic for causing the furore.

“The correct overall figure should have gone in the media release,” the Transport Minister conceded.

“I’m the line minister, I take responsibility for that — I apologise sincerely.

“We put the correct number on the website but it should have gone in the press release – that’s on me. I apologise for that.

“But, let’s be really clear — this is the outcome of an independent competitive procurement process.”

Deputy Opposition Leader Jarrod Bleijie accused both Ms Palaszczuk and Mr Bailey of knowingly lying to Queenslanders.

“The Premier and the Minister could be forgiven if it was a dollar here and there but we’re talking about a $2.4 billion budget blowout,” he said on Monday.

“The Premier put her name on that press release which means she approved a false press release knowing it was a lie.”