Cross River Rail: State rethink on funding after Federal Budget
QUEENSLAND’S most critical infrastructure project may go “back to the drawing board” after its Federal Budget snub.
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PREMIER Annastacia Palaszczuk has conceded her Government may have to go “back to the drawing board” to build the Cross River Rail just a month before the State Budget.
As Ms Palaszczuk was hounded by the Opposition to finally release the project’s secret business case, she refused to be drawn on whether the $5.4 billion project – hoped to begin this year – would now be delayed following the Turnbull Government’s funding snub.
But Treasurer Curtis Pitt hinted he would consider increasing the state’s $800 million commitment to the city’s second rail crossing as the state rethinks financing options.
“I think those matters need to be canvassed closer to our Budget,” he said.
“If there’s no federal money we will have to look at the funding options.”
The business case – which the Government has refused to release – contains a number of options to help fund the project with private money.
Known as value capture, options used in other international infrastructure projects include making money from retail space above stations, levying nearby businesses that benefit from new stations or charging landowners a portion of the increase land value the project delivers for them.
Mr Pitt said the Federal Government had shown “clear disdain” towards Cross River Rail, as Infrastructure Minister Jackie Trad said the southeast could not afford for the project not to happen.
“It has really made us think about how we’re going to get this project up and, as the Premier said today, it might mean we go back to the drawing board,” Ms Trad said.
“We’re going to review where we’re up to. This is still our number one infrastructure priority and we will assess our options.”
Instead of guaranteeing cash, Treasurer Scott Morrison wants Queensland to seek funding from a new $10 billion National Rail Program that won’t start paying out until 2019, as he raised questions over the project’s business case.
Ms Trad said the document had been delivered to the Federal Government nearly a year ago and had handed money out for other projects without business cases.
Opposition Leader Tim Nicholls said the business case must now be released to prove the project stacked up financially.
“If they’re business case is so strong all they simply need to do is release it to the public so everyone can see the merits of the case,” he said.
Mr Nicholls said the Government had not done enough to secure funding.
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