Palaszczuk Government: Queensland’s white elephant infrastructure
A $380 million dam that isn’t connected, an unused pipeline with a $10 million maintenance bill, and 20 commercial leases that will need to be broken — these are Queensland’s white elephants costing taxpayers millions.
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WHITE elephant infrastructure worth billions of dollars is idle around Queensland as taxpayers and private companies pay hundreds of millions a year to leave them in limbo.
A recent State Government estimates hearing was told the unused $2.7 billion Western Corridor recycled water pipeline is costing $10 million a year to maintain.
But it is far from an isolated case, with dozens of expensive projects and investments made redundant, or temporarily shelved by changing circumstances or policies.
Like the Western Corridor project, the $1.2 billion Tugun Desalination Plant was part of the $9 billion water grid system fast-tracked as southeast Queensland battled its worst drought for a century.
By the time they were complete, the Big Dry had ended and the region’s dams were full again.
The desal plant is in “hot standby mode’’ and could be brought into permanent service from 2020 to meet demand from population growth but, in the meantime, it costs $15 million a year to maintain.
The desal plant and recycled water scheme also costs Queenslanders $152 million a year in interest payments.
Engineers Australia Queensland infrastructure spokesman Chris Warnock said the Government had been caught in a classic catch-22.
“That plant is a white elephant now but it was done by a government which, at the time, did not have too many options,” he said.
Queensland’s newest dam, Wyaralong near Boonah, was built at a cost of $380 million as part of a drought protection plan, but it has not been connected to the water grid.
Some $520 million was spent on 655 property and land resumptions for the aborted Traveston Crossing Dam project between 2006 and 2009. So far, 630 have been resold. The latest figure is not available but a year ago, the Government was facing a $250 million shortfall.
About 5000 public servants will move in to the $653 million 1 William St building later this year. While many will relocate from the Executive and Neville Bonner buildings earmarked for demolition, others are currently in almost 20 commercially leased office blocks around the city.
“Any decision by Government to break a lease will be subject to a full and thorough financial analysis which will incorporate the financial impacts of any break lease fees, and rent costs to Government,’’ a spokesman for Treasurer Curtis Pitt said.
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