Gold Coast light rail: Tate rules out extra funding for Burleigh trams after cost blowout
Expansion of the Gold Coast light rail is facing delays and Mayor Tom Tate has ruled out putting up any further funding – now Bulletin readers are having their say. JOIN THE CONVERSATION
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EXPANSION of the Gold Coast light rail is facing delays and Mayor Tom Tate has ruled out putting up any further funding – now Bulletin readers are having their say.
Their verdict is damning, with the situation labelled “an expensive joke” and an “absolute nightmare”.
“The public are being completely conned in my opinion. Eventually everyone will wake up and see what a mess this is. And a huge waste of money. If Tate was a true leader he would swallow his ego and admit this isn’t the best way forward,” Jackson commented.
Patti added: “The State is billions in debt, the Council can’t keep the roads in good condition. The tram is an expensive joke and the bus lanes are there now and the bus is servicing the public already. Doesn’t pass the pub test.”
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Danny said the story showed the Palaszczuk government to be “absolutely useless”, saying “they couldn’t run a lemonade stand”.
Ben was among many who hoped the delay would be long-lasting, saying: “BEST NEWS EVER ... We don’t want or need these antiquated TRAMS.”
But Paul had a different take.
“It will all be forgotten when it’s up and running,” he said. “Light rail has saved the GC”.
ALL THE COMMENTS BELOW
FULL REPORT
MAYOR Tom Tate says ratepayers will not cough up “a single cent more” to cover cost blowouts on the light rail’s extension to Burleigh.
The 6.7km tram line from Broadbeach to Burleigh is facing delays after the state government admitted last week it was yet to sign a contract with John Holland Group, the firm last year selected to build it.
Transport Minister Mark Bailey confirmed the delay would “impact the project’s initial timelines and final budget”.
But Councillor Tate, a long-term supporter of the $709m project, says there is “no way” council will step in to cover the blow out.
“A small delay is not a concern as long as council’s funding contribution does not increase because we were not a party to the reasons for the cost increase,” he said.
“We are willing to wear the delay but we are not willing to dip into the kitty again for this.”
Council has consistently put up 11 per cent of the cost of each stage of light rail, and the federal government 22-38 per cent.
The state government paid almost 49 per cent of the costs to build Stage 1, 64.3 per cent for Stage 2 and 50 per cent of Stage 3.
Mr Bailey said negotiations with John Holland Group were ongoing.
“We are finalising the contract to build the next stage of light rail to Burleigh, with the aim still of starting construction this year,” he said.
The rail line is expected to take about three years to build and at one point was expected to open in 2023.
In October, the government announced that John Holland had beaten two fellow finalists to build the project. They were: Burleigh Link JV, a joint venture between Fulton Hogan Construction, and UGL Engineering and CPBSW JV, a joint venture between CPB Contractors and Seymour Whyte Constructions.
The Melbourne-based John Holland would build the tramline and eight stations, the government said.
Opposition MP Michael Hart said the delay had been caused by the government’s best practice procurement policy. He believed the policy would cause the cost of the project to blow out by up to $100m.
The policy governs developments worth more than $100 million, requiring them to comply with “best practice industrial relations” and greater conditions for workers.
Cr Tate said the council was focused on putting together its funding contribution for Stage 4 to the border, which will be 11 per cent of the total cost.
“We are putting aside our funding for Stage 4 because we should front up with the same funding level of the total cost,” he said.
“Council will have to save this over time and I am adamant there will not be any consideration of a transport levy to cover this.
“We have never had a levy for stages one to three and I am not going to start now.”
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EXPANSION of the light rail to Burleigh is facing delays and a budget blow out because the government is still trying to find someone to build it.
The Palaszczuk government announced before last October’s state election that the John Holland Group had been appointed to build the 6.7km line from Broadbeach.
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However, despite early ground works starting and projections heavy work would start in early 2021 the Bulletin has learnt the contract for the $709m project has still not been signed.
Transport Minister Mark Bailey admitted to the embarrassing blunder in reply to a series of Bulletin questions this week.
“We are finalising the contract to build the next stage of light rail to Burleigh, with the aim still of starting construction this year,” he said.
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“Negotiations have been underway with the preferred contractor since late 2020.
“It’s taken longer than we would have preferred, and the delay will impact the project’s initial timelines and final budget.”
The rail line is expected to take about three years to build and at one point was expected to open in 2023.
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In October, the government announced that John Holland had beaten two fellow finalists to build the project. They were: Burleigh Link JV, a joint venture between Fulton Hogan Construction, and UGL Engineering and CPBSW JV, a joint venture between CPB Contractors and Seymour Whyte Constructions.
The Melbourne-based John Holland would build the tramline and eight stations, the government said.
John Holland did not respond to Gold Coast Bulletin inquiries on Thursday.
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Opposition MP Michael Hart said the delay had been caused by the government’s best practice procurement policy. He believed the policy would cause the cost of the project to blow out by up to $100m.
“I am concerned by these delays and the fact that the government seems to be softening the public up for an increase in costs because of a policy they put in place in the dead of night a couple of years back,” he said.
“This policy will lead to a reduction in bang for the buck and lead to increased costs without any benefit and this project I hear could blow out by $100 million without anything extra provided.”
The policy governs developments worth more than $100 million, requiring them to comply with “best practice industrial relations” and greater conditions for workers.
Mr Hart blamed the policy for adding $43m to the cost of the new sports stadium in Townsville and blowout of the Capricorn Correction Centre upgrade.
Mr Bailey said the government was facing a “red hot and highly competitive rail market” as other states fast-tracked their own rail projects.
“Given the competitive market we’re in, there is no doubt there will be some impacts to the project’s budget and timelines, but we won’t know the final make up of those until contracts are finalised,” he said.
“We are proceeding under Queensland’s improved procurement rules that require contractors delivering major projects on behalf of the government to create secure local jobs and use local contractors, manufacturers and suppliers of goods and services as much as possible.
“If our government is investing hundreds of millions of dollars to build better infrastructure for Queenslanders, we want as much of that money as possible to benefit Queensland workers and Queensland businesses.”
Stage 3 has been in the works since the second stage from Helensvale to Gold Coast University Hospital was completed in late 2017.
It was at the heart of a lengthy funding battle between the state and federal governments in 2018-19 before a funding deal was cut.
In recent months the state government’s focus had turned to the route study and community consultation on Stage 4, which will run from Burleigh Heads to the border.
ONE TRACK MIND — LIGHT RAIL TIMELINE
● December 2017: Light rail Stage 2 launches, sparking immediate calls for Stage 3 to be funded.
● September 2018: Gold Coast Bulletin reveals $112m federal funding proposal for tram extension in major budget leak.
● November 2018: Prime Minister Scott Morrison visits Gold Coast and confirms funding for Stage 3.
● December 2018: Results of state government and council business case reveals mass support for extension.
● January 2019: Final light rail deal declared to be “imminent”.
● March 2019: Opposition Leader Bill Shorten confirms Labor will match LNP federal funding, but Transport Minister Mark Bailey says it is not enough.
● April 2019: Gold Coast City Council prepares for emergency meeting to consider extra funding to end impasse. Mayor Tom Tate reveals the project has stalled, sparking an election funding battle between the state and federal governments.
● May 2019: Science Minister Karen Andrews proposes shortening the Burleigh route to make it cheaper and without requiring more funding. The Morrison government is re-elected.
● August 2019: The state government announces it will commit $351m to the Broadbeach to Burleigh rail link.
● November 2019: Light rail Stage 3 finally gets the green light after the federal government increases its stake on the project from $112m to $269m.
● October 2020: Premier Annastacia Palaszczuk announces John Holland Group will be the contractor for the Broadbeach to Burleigh route, just three weeks before a state election. Labor wins the poll.
● April 2021: Mr Bailey confirms contracts for Stage 3 have not yet been signed, delaying the project’s start and pushing up its costs.
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