Jarrod Bleijie takes aim at Townsville’s Haughton pipeline as cost continues climb
The second stage of the Haughton Pipeline project could cost more than $500m Deputy Premier’s Jarrod Bleijie has revealed.
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The second stage of the Haughton Pipeline project could cost more than $500m Deputy Premier’s Jarrod Bleijie has revealed.
The staggering cost escalation of a project originally set to cost $195m before increasing to $275m has prompted the new LNP government to seek urgent clarity from Townsville City Council about the growing price tag.
Deputy Premier Jarrod Bleijie confirmed he was briefed by Treasury about the pipeline project on Wednesday.
The project’s price tag currently sits at $420m as previously revealed, but Treasury modelling indicates the build is on track to eclipse $500m.
This puts the pipeline on par in cost with the Townsville University Hospital upgrade, and nearly twice the price of the Queensland Country Bank Stadium.
“I instructed my department yesterday to write to the Townsville City Council saying, I’m not happy with the current arrangement and the blowout,” Mr Bleijie said.
“And it looks like (the pipeline) could be well over $500 million for a project that was meant to cost $275 million so I’m really concerned.”
Mr Bleijie said he was “blown away” by the cost escalation but did not have an explanation for the increase.
“There’s not too many explanations, other than anything the former labor government touched blew out and it’s just another example,” he said.
On Wednesday, a Townsville City Council spokeswoman said work was progressing on the project, despite delays due to inclement weather earlier in the year and it was still expected to finish in 2025.
In response to Deputy Premier Bleijie’s remarks a Townsville City Council spokeswoman said they were unable to comment.
State opposition leader Steven Miles said the LNP were looking to ‘cut money’ and reiterated his calls for Premier David Crisafulli to stand down Mayor Troy Thompson, saying the uncertainty of the mayor’s position threatened projects like the Haughton.
“David Crisafulli needs to make a decision on Troy Thompson’s future,” Mr Miles said.
“He has all the legal advice and all the information he needs, and he must make a decision now.”
The pipeline project has been met with controversy at several points throughout it’s contentious history, first when it was revealed in 2021 that the then Townsville City Council had pledged for ratepayers to pay $79 million of the initial ticket price, and again earlier this year when CEO Joe McCabe revealed that the cost of the project had drive up an extra $150 million to $420 million.
Those cost increases were attributed to inflated costs throughout the construction industry after the Covid-19 pandemic.
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Originally published as Jarrod Bleijie takes aim at Townsville’s Haughton pipeline as cost continues climb