Federal Budget funds slow to flow to Queensland
Analysis of the 2019-20 Budget against the final outcome shows Queensland was promised nearly $1.7 billion in infrastructure spending, mostly on roads. But that’s not what we got. SEE WHAT WAS SPENT
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Only about three in every four dollars promised in last year’s Budget for Queensland infrastructure projects was actually delivered, according to new figures.
Analysis of the 2019-20 Budget against the final outcome shows Queensland was promised nearly $1.7 billion in infrastructure spending, mostly on roads.
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But when the cheques were cleared at the end of the year just $1.3 billion, or 78 per cent, had been spent.
The Courier-Mail on Monday revealed today’s Budget would include at least $1.3 billion in transport infrastructure spending for Queensland.
Of 10 Queensland infrastructure programs in last year’s Budget, eight were underspent with just two – a bridge renewal program and roads to recovery – receiving more money than had been budgeted.
A spokesman for Infrastructure, Transport and Regional Development Minister Michael McCormack said final spending was driven by state governments meeting agreed construction milestones.
“This is prudent financial management, with the Commonwealth making payments based on actual progress on the project and not in advance of need,” he said.
He added that there had been “considerable disruption” in the past year including from COVID-19 and bushfires.
“While this has impacted some projects in the short term, they remain on track over the life of the projects,” he said.
“All funding for our committed projects is budgeted and ready to flow on achievement of agreed construction milestones.”
Opposition infrastructure, transport and regional development spokeswoman Catherine King said the government had underspent $6.8 billion on infrastructure projects it had promised over the last six budgets.
“We can’t afford a Government who is not on the ball when it comes to actually getting this money out the door, investing the time that it takes to get these projects moving, and to actually get this money circulating through the economy,” she said.
“Too many people are relying on this Government to deliver, to deliver for their jobs, to deliver for employment, and to deliver for the economy, but their record so far in every single budget is a big announcement on infrastructure, big headlines on infrastructure, but the delivery is actually missing every time.”
The worst ratio of spending was under the urban congestion fund with just $25 million out of $161.8 million, or about 15 per cent of promised funds being delivered in 2019-20.
Population, Cities and Urban Infrastructure Minister Alan Tudge said he was pushing state and local governments to ensure projects were delivered as quickly as possible and he had “personally prioritised” the urban congestion fund.
“About 90 per cent of UCF projects across Australia will be complete or under construction within the next 18 months,” he said.
Queensland infrastructure spending – budgeted v actual 2019-20
UNDERSPEND Budgeted Actual Spent
Road investment component: $1190.4m $999.2m 83%
Urban Congestion Fund: $161.8m $25m 15%
Northern Australia roads: $71.7m $68.3m 95%
National Rail Program: $48m $12.5m 26%
Black spot projects: $24.9m $13.6m 55%
Improve cattle supply chains (roads): $24.6m $16.5m 67%
Heavy vehicle safety and productivity: $24.2m $16.5m 68%
Major projects business case fund: $14m $7.5m 54%
TOTAL $1559.6m $1159.1m 74%
OVERSPEND
Bridge renewal: $31.1m $37m 119%
Roads to Recovery: $101.7m $115.6m 114%
TOTAL $132.8m $152.6m 115%
OVERALL $1692.4m $1311.7m 78%
