Robbie Katter blames Powerlink for CopperString’s overblown costs

Robbie Katter has blamed management for multi-billion dollar blowouts of the CopperString 2.0 project as North Queensland leaders call on the company to dig in to deliver the much-needed project to the region.

Traeger MP Robbie Katter has blamed management for multi-billion dollar blowouts of the CopperString transmission line. Picture: Evan Morgan

North Queensland MP Robbie Katter has blamed management for exorbitant multi-billion dollar blowouts of the CopperString transmission line, claiming the company involved did not have the skills involved to lead the massive infrastructure project.

Mr Katter wants to see a new company take over from Powerlink instead, the significance of which he compared to the government-funded railway infrastructure on Queensland coal royalties.

Leaked documents show the $5bn transmission line spanning from Mount Isa to Townsville had escalated to $9bn – even further than a previously reported cost increase of $6.2bn declared by former Labor treasurer Cameron Dick in late August.

A Powerlink spokesman confirmed a financial investment proposal was submitted to government departments including the Queensland Treasury earlier that month that estimated the cost to be $8.2bn.

This amount considered increased costs during the construction of the project as well as a 25 per cent project contingency, but also considered an additional $800m for “capitalised interest”.

The new LNP government, headed by Premier David Crisafulli flanked by deputy premier Jarrod Bleijie and Treasurer David Janetzki. Picture: Lyndon Mechielsen/Courier Mail

The spokesman said work on the project was progressing as the proposal remained with Powerlink’s shareholding ministers.

“Powerlink has a reputable team of world-class experts across the business who are dedicated to delivering high quality transmission projects,” the spokesman said.

The LNP’s new Treasurer and Energy Minister David Janetzki remained committed to the project, saying there would be “all hands on deck to save CopperString”, which gives relief to councils based along the transmission line corridor and to the industry.

Richmond Mayor John Wharton, who sits on the project’s reference group, believed an audit would be necessary to determine the cause of the escalated costs.

Richmond Mayor John Wharton said an audit of the CopperString project would be necessary, but also believed construction needed to be completed as soon as possible. Picture: Scott Radford-Chisholm

But aside from the blowout he had little reason to believe there had been financial mismanagement.

“It’s a very important transmission line, it’s one of the biggest in Australia to be built,” Mr Wharton said.

“But I’m not really sure about their finances and how they run their show.

“There might be money being wasted somewhere, I don’t know. Maybe they could cut it back a bit.

“We’ve got to remember it is run by the government, and governments are inclined to waste money.”

Mr Wharton warned the transmission line needed to be completed as soon as possible, believing further delays would only inflate the costs further.

But Mr Katter believed an audit did not go far enough.

As soon as the new parliament’s swearing in ceremony was completed on Tuesday, Mr Katter cast doubt on Powerlink, which was delivering on the transmission line alongside construction partners UGL and CPB Contractors.

The CopperString transmission line from the south of Townsville to Mount Isa.

Mr Katter said he had concerns about the company’s performance for about a year and claimed it did not have the motivation to deliver on the project, accusing it of not having the skills as a constructor but only as an asset manager.

“AEMO (Australian Energy Market Operator), the national regulator, has some industry standards that is probably the best guide to give you on costs.

“It’s not as complicated as everyone’s trying to make out building poles and wires.

“Yet they’ve somehow created this narrative around doubling the price over what the industry standards say, and that is just absolute nonsense.

“They’ve been brought in to be a developer for the first time … and not only develop the biggest transmission line in Australia’s history but to do it in some of the remotest areas of Australia.

“Certainly, not surprisingly, they haven’t proven to be confident in this area and I think that falls just squarely on the shoulders of the leadership.”

Mr Katter said CopperString would have significant influence on Queensland’s long-term economy that would be felt in Brisbane, given that it would increase the feasibility of mining projects.

Yirendali traditional owners representative Jim Hill and former Queensland Premier Steven Miles at the groundbreaking of the CopperString project at Hughenden earlier this year.

He said the Eva copper project in Cloncurry being considered by a South African giant relied heavily on CopperString being built.

“And the royalties from Little Eva and the North West, they don’t come to Mount Isa and Townsville, mostly the opposite, they go down to Brisbane,” Mr Katter said.

“So people in Brisbane should be more worried about this than people in the North West.”

Townsville Enterprise’s chief executive Claudia Brumme-Smith described CopperString as a nation-building project which would be vital for the economies of communities from Mount Isa to Townsville.

She said that it would untap the best wind and solar resources in the country and connect them to the national grid, while increasing the feasibility of mining deposits in the North West Minerals Province, which had an estimated value of $740bn.

“CopperString has already brought more than $7bn in additional private investment into renewable energy and critical minerals projects,” Ms Brumme-Smith said.

“We need Powerlink to work hard to control costs and deliver CopperString on time and on budget,” she said.

In late August Powerlink chief executive Paul Simshauser said cost increases were caused by realignments being required.

Chief Executive Officer of Powerlink Paul Simshauser at the official opening of the CopperString Experience Centre in late August, where he spoke on the reasoning behind cost increases. Picture: Shae Beplate.

In the eastern part realignments were needed because of the terrain, while the western part required changes because of “cultural finds” in the area which would involve further consultation with traditional owners.

But there also had been a 25 per cent increase in equipment since budgeting for the project was conducted two years ago, he said.

A spokesman for Federal Resources Minister Madeleine King said the federal government supported state government’s investment which would link the isolated North West to the national energy grid.

“This project is important for future critical minerals projects in the region including critical minerals processing,” the spokesman said.

Originally published as Robbie Katter blames Powerlink for CopperString’s overblown costs