Whistleblower bombshell: Haughton Pipeline costs skyrocket to $420m, claims MP Phil Thompson

Whistleblowers from inside Townsville council have blown the lid on the ballooning budget blowout for stage two of the Haughton Pipeline which is now expected to cost $420m, Federal MP Phil Thompson says.

Phillip Thompson says whistleblowers from inside council have blown the lid on the Haughton Pipeline costs blowout.

Whistleblowers from inside Townsville council have blown the lid on the ballooning budget blowout for stage two of the Haughton Pipeline, which is now expected to cost $420m, says Federal MP Phil Thompson.

Mr Thompson’s shocking comments were made in a statement to the Federation Chamber of Parliament on Thursday under parliamentary privilege.

It comes as the cost of stage two of the Haughton Pipeline project has been shrouded in speculation in recent weeks.

After stage one of the project was completed in 2020, Townsville City Council said in 2021 that stage two would cost more than expected.

There was expected to be a $79m blowout, with costs increasing from $195m to $274m.

However, there have been growing fears that the budget blowout will be far worse after the council recently acknowledged “significant cost escalations”.

Pipes being laid for the 28km second stage of the Haughton Pipeline project. Picture: Supplied.

Mr Thompson said the council’s silence on the matter had been “deafening” after he wrote to Acting Mayor Paul Jacob two weeks ago asking for an urgent briefing.

Speaking in parliament, Mr Thompson revealed that whistleblowers from Townsville City Council have since taken matters into their own hands and contacted him with information.

“It includes evidence of a council document which shows our community has been lied to,” Mr Thompson told the federal chamber.

“The information provided to me shows a project cost increase from $179.6 million to over $420 million — more than 133 per cent — as well as a project completion blowout of more than four years.

Harry Bruce’s cartoon about the Haughton Pipeline.

“The key reason for this disgrace is identified as the refusal from Team Labor to accept the Federal funding when it was offered.

“Adding further insult to injury, I also understand a costly consultant has now been on the books for almost a year to identify ways to mop up Labor’s disastrous mess, which includes putting out the begging bowl to the Queensland and Federal Governments for an additional $146 million.

“I urgently call on the Townsville City councillors, State Labor MPs and State Labor Government to explain to the people of Townsville why they should not resign immediately and a full investigation be conducted.”

In response, a Townsville City Council spokeswoman has acknowledged that it became apparent in early 2023 that the forecast costs for stage two would exceed the approved budget of $274m, comprising $195m from the state government and $79m from the council.

“Since that time Townsville City Council has been working with a specialist consultant to conduct an in-depth review of the project, specifically focusing on how to reduce the forecast cost to complete,” she said.

“The review has identified savings that could be made should a further delay to the completion date be accepted.”

The spokeswoman confirmed that the current forecast cost to complete the project is $420m if no savings are implemented.

She said despite their commitment to water security, the council is unable to contribute additional funds beyond the $79m already allocated, throwing the future of the project into serious doubt.

“There are several reasons for the cost increase with the single biggest contributor being the cost escalation associated with construction following the COVID pandemic,” the spokeswoman said.

“Council has allocated $79m to the Haughton Pipeline stage two project, including $45m in its 2024/25 Budget and Operational Plan.

“Council will engage with its state funding partners to consider options for low-cost, secure water supply.”

Townsville MP Scott Stewart said it was “ludicrous” for Mr Thompson to say any cost overruns for stage two sit with the Queensland Government.

He highlighted the state had already committed $195m to stage two, in addition to the $215m delivered for stage one.

“This is Townsville City Council’s project – and the budget for the project rests with them,” he said.

“We fund councils, unlike the LNP who just cut from councils.”

Originally published as Whistleblower bombshell: Haughton Pipeline costs skyrocket to $420m, claims MP Phil Thompson