Gold Coast light rail: Federal government $157m short

The State Transport Minister has dropped a bombshell by revealing the Federal Government is $157.5 million short in its pledge to help fund the next stage of the light rail.

THE State Transport Minister has dropped a bombshell by revealing the Federal Government is $157.5 million short in its pledge to help fund the next stage of the light rail.

Mark Bailey told the Bulletin that the State Government pushed through Stage 2 to Helensvale ahead of the Commonwealth Games, but the “one-off intervention” was not sustainable.

In another upsetting development, one of the city’s State MPs yesterday declared the trams a Queensland Government project and anything the Gold Coast got from Canberra would be a bonus.

Sam O’Connor’s comments drew an angry response from Mr Bailey, who told the first-term MP to “find to some courage” and stick up for the Gold Coast.

THE FIGHT FOR LIGHT RAIL FUNDING

Sam O'Connor at the Helensvale Glink station — he and Transport Minister Mark Bailey are in dispute about funding.

The cost estimate to deliver light rail stage 3A, from Broadbeach to Burleigh, outlined in the latest Building Queensland’s Infrastructure Pipeline Report shows the project has blown out to $709 million.

For Stage 1 of the light rail, the State Government provided almost 49 per cent of funding. That ballooned to 64.3 per cent for Stage 2. The Federal Government paid 38 and 22 per cent, respectively.

For Stage 3A, the Commonwealth is offering $112 million (about 16 per cent) and the council is expected to continue its 13 per cent component at about $92 million. If the State Government insists on committing 49 per cent ($347 million), like it did for Stage 1, the project would be short more than $157 million.

Opening morning of the Stage 2 of the Gold Coast light rail (g:link). Mark Bailey MP and Gold Coast Mayor Tom Tate talking. Picture: Jerad Williams

“The $365 million contributed to the $949 million first stage of light rail by the then Federal Labor Government is a good benchmark,” Mr Bailey said yesterday.

“Based on that, we believe the current $112 million federal offer is $157.5 million short of what it should be.

“The Palaszczuk Labor Government did the heavy lifting on Stage 2 to make the (Commonwealth) Games a success, but this one-off intervention is not a sustainable funding model.

“We’ll use all the time available to us to seek a better deal and will consider our funding position once we have received fair offers from the Federal Government and city council.”

Mr O’Connor fired up the Transport Minister early yesterday by suggesting light rail would have no funding in the upcoming State budget.

LIGHT RAIL STAGE 3A MAPPED OUT

Gold Coast Light Rail Stage 3A artist impression of a Burleigh Heads station.

“It’s already been delayed by months and now Mark Bailey could cancel it,” he said.

The Bonney MP said the only other light rail project in Australia to gain federal funding was the ACT Capital Metro — at 16 per cent, the same as the Commonwealth offer for Stage 3A on the Coast.

“This new analysis shows any federal funding is a bonus and Mark Bailey is just using this blame game as an excuse,” Mr O’Connor said.

“In NSW the Federal Government funds zero per cent of light rail. In Canberra they put in 16 per cent. The NSW Government funded over $4 billion of light rail on their own.

“This is a state project so show us the money. How much will Labor commit”.

CR TATE DEMANDS $45M FOR LIGHT RAIL FROM FEDERAL GOVERNMENT

In reply, Mr Bailey asked why Mr O’Connor “refused to stand up for the Gold Coast and stand up to his own party ripping off his home town”.

“Sam O’Connor should start demanding his federal LNP colleagues back the Gold Coast with decent infrastructure funding instead of ripping it off like they did on the M1.

“His capitulation to the LNP party line shows he’s picked up lazy habits from his older LNP colleagues.

“Mr O’Connor’s choice is simple: find some courage and stand up to his party colleagues in Canberra to increase its offer.”

Burleigh LNP Michael Hart believed the State Government has put much of its future infrastructure funding into the $5.4 billion Cross River Rail project.

“I don’t think they have any money,” Mr Hart said. “The $5.4 billion for Cross River Rail is underestimated. It will be twice that much, by the time they’ve bought the trains and hired the workers.

“They will be concerned about making that work. Every other type of transport project will be put on hold.”