Budget reveal: M1 and Coomera Connector upgrades years behind planned opening
Pacific Motorway upgrades including exit works along with the Coomera Connector will be delayed in some cases for at least three years, sparking speculation of budget blowouts.
Gold Coast
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Motorists will be stuck in gridlock for longer than they think with work on Pacific Motorway upgrades and its exits, and the Coomera Connector, delayed in some cases at least three years.
QTRIP data released as part of the State Budget show the M1 hold-ups for some of the city’s key transport infrastructure.
The investment program shows:
■ The Pacific Motorway Varsity Lakes to Tugun upgrade, due to finish next year, has forward funding to 2025-26 of $171m, showing a major works “red light”.
■ The Coomera Connector’s biggest funding splurge will be $852m from 2024 to 2026. A $500m spend occurs after that. It was due to open in late 2024.
■ The M1’s busiest exit, Exit 49 at Pimpama, was first announced for an upgrade in 2019. Funding shows $39m still to be spent in 2025-26, suggesting the late finishing date.
In a special report in February, the Bulletin detailed how environmental and legal issues could delay a start on Coomera Connector until at least mid-year. The government later faced accusations of a “four-lane fraud” after it was revealed sections of the planned six-lane highway would be reduced.
Last month, another report showed a $100m blow-out for the $1bn 10km southern section upgrade of the M1 from Varsity Lakes to Tugun.
“This budget confirmed we won’t be driving on Stage 1 of the Coomera Connector until after 2026,” Bonney MP Sam O’Connor said.
“There is no excuse for this delay. Labor have been in power for more than seven years and this week we found out 80 per cent of the second M1 won’t be coming until after July 2023.
“This was for a project that was meant to have started in 2015 and it’s already had a $600m blowout, despite the number of lanes being cut from six to four.”
Coomera MP Michael Crandon said he had met with transport executives and the contract was still yet to be signed, but not far away for the Exit 49 upgrade.
“They haven’t signed the contract. In discussions with TMR regional, my office takes copious notes. It was April-May 2024 (finish date),” Mr Crandon said.
“There’s no way known when you have got a $39m spend beyond 2023-24 that they are delivering that. That’s not the final bit of landscaping, that is still part of the major construction.
“They are still putting something across the M1 with that sort of money. What I think it is, they have blown out the budget.”
Labor has responded by saying the LNP under the Newman Government had a transport budget which was 14 per cent of current government’s.
Government sources suggest auxiliary works would continue beyond the Coomera Connector’s planned opening.
Mr Crandon said the funding was available as the first trench of cash from an election commitment from the federal government was made before the 2019 election.
“That was the first $55m. How can it take six years to build and upgrade an overpass? It’s just crazy. This thing is taking six years, it doesn’t make any sense.”
Currumbin MP Laura Gerber said the $1bn upgrade of the southern section of M1 was expected to be finished by the end of 2023.
“This is what the state government told our community,” she said. “Now we learn the upgrade is facing years of delay, meaning more locals are stuck in traffic for longer.
“And the government wants us to believe that this budget has a record road and transport plan. To locals on the southern Gold Coast, this is not a record budget, this is a budget of broken promises from a sneaky Treasurer we cannot trust.”
Transport Minister Mark Bailey told the Bulletin: “Party political whinging from LNP MPs about the Palaszczuk Government’s $5 billion commitment to the Coast is breathtaking in its negativity.
“There is no comparison to the LNP’s record of not one single new dollar on the M1 or light rail when they were in power and also blocked the second M1 as reported in the Gold Coast Bulletin in 2014.
“In fact, the LNP’s last state budget under Campbell Newman and David Crisafulli showed an investment of a measly $735 million for Gold Coast transport infrastructure. That’s only 14% per cent of the $5.2 billion we are delivering in this budget.”
“These three lazy LNP MPs ignore the well known impacts of a long, wet La Niña summer, supply chain difficulties due to the pandemic and the impacts of COVID and the worst flu season in a decade on workforce availability of construction workforces everywhere, which have affected our schedule of works.”
Revealed: Where Coast’s newest bus routes will run
June 22: More than $16m will be spent bringing more bus services to the Gold Coast’s fastest-growing suburbs over the next five years.
The Gold Coast City Council and State Government will co-funding a trial of new services in the booming suburbs of Ormeau, Puimpama and Coomera to increase the frequency of bus arrivals.
The funds were committed in Tuesday’s state budget.
“This funding will also see a bus service connecting locals to the recently opened Pimpama Sports Hub, which is a much loved asset of the community,” Transport Minister Mark Bailey said.
“Planned upgrades also include a new network that responds to and serves the new Cross River Rail Pimpama Station, which is targeting completion in late 2024.
“Added routes also include more services covering Pimpama and a service to Jacob’s Well as the region continues to grow at a rapid rate.”
The trial will run until the end of the 2025-26 financial year.
Gold Coast Mayor Tom Tate said the funding would make a significant difference for the city’s growing north.
“I warmly applaud the announcement which will put a smile on the faces of tens of thousands of public transport commuters,” he said
“We are pushing hard to increase public transport uptake and to have these services zig-zagging all over the north, connecting with heavy and light rail modes, is a great investment in our community.”
Revealed: When new hospital will open
Work on a new public hospital will begin within 12 months and be fully completed by 2028, the state government says.
Treasurer Cameron Dick announced the $20m early works package for the Coomera Hospital in Tuesday’s 2022-23 state budget. All up, $1.3b will be spent over six years on the 404-bed facility.
It was first promised by the state government before the 2020 election.
The government’s $1.9b overall spend on health across the Gold Coast in the next 12 months will also include a lease arrangement with Robina Hospital to deliver 114 new beds; a $72m modular expansion at Gold Coast University Hospital to create 70 new beds by the second half of 2023; and $16.5m of work at Robina Hospital to deliver 20 new beds in the same time frame.
Bulletin reports in 2019 revealed there were just 1000 beds shared across Gold Coast University Hospital and Robina Hospital, 500 fewer beds than the national average.
More than six months before the Covid-19 pandemic hit the city, the state government revealed 10 hospitals in southeast Queensland were at capacity and unable to serve an “unprecedented” number of patients”.
On Tuesday, Mr Dick announced $139.9m had been set aside for seven satellite hospitals, including one in Tugun. It remains unknown how much will be spent on the Gold Coast project.
Other health projects announced for the Gold Coast in the next 12 months include:
* New Ormeau ambulance station – $4.5m;
* New GCUH secure mental health rehabilitation unit – $45.5m out of total $105.5m;
* Gold Coast Parklands Health and Knowledge Precinct – $3.7m out of total $40m;
* Southport health precinct – $1.5m out of total $8.9m;
* Redevelopments of Southport ambulance station and Gold Coast operations centre – $4m of total $10.2m
* Robina Hospital’s second CT scanner – $3.8m of total $12m.
Mr Dick said the budget would deliver “a record commitment of $23.6b for frontline health services (statewide) and high-quality healthcare infrastructure”.
“Today, our government commits $9.8b for a funding program to expand the capacity of
Queensland’s health system, the biggest hospital building program in the history of Queensland,” he said.
“This is a record budget for health. Every year, the health budget grows. But this year, the increase is much more than just the usual.
“We have listened to stakeholders in the health system, who tell us that they need greater
budget certainty to plan and deliver high quality health care.”
Health Minister Yvette D’Ath said: “Investment in our healthcare workforce is vital.
“They are our greatest asset, and the reason Queenslanders continue to receive first-class healthcare every day.”
Area LNP MP Michael Crandon said he feared the project would be delayed for several years despite the six-year timeline.
“The 400-bed deal is probably going to be ramped up as time goes on, as these things tend to be,” he said.
“Given the gap they’ve got in the need for beds, (the 400) is a bit disappointing.
“In reality, it’s going to get blown out and what’s that going to do with the need for beds?”
Before Tuesday budget announcements, Gold Coast Mayor Tom Tate said it was “time to get on with” the Coomera Hospital.
“It’s been talked about for years and I’m over the excuses,” he said.
“A private developer has announced plans for a $1.5 billion private hospital in the area.
“That is absolute proof there is a need for hospital services in the area.”
Joint venture partners Keylin and Kinstone Group this week lodged plans with Gold Coast City Council for Foxwell Coomera, a $700m, 400-bed, 60,000sq m state-of-the-art hospital.
The facility will be built as part of a $1.5b private hospital and health precinct next to Westfield Coomera Shopping Centre.
No operator for the hospital has been announced.
Surprise revelation about future of Coast’s $2.7bn light rail extension
Key Olympic Games transport projects have missed out on funding as the state government finally begins construction on the next light rail extension and Coomera Connector.
However, Premier Annastacia Palaszczuk says Anthony Albanese’s federal government will be easier to deal with in securing money for big-ticket items.
More than $800m was committed in Tuesday’s state budget to a range of previously announced road and rail projects. Construction will begin in the next financial year.
They include:
* $270m for light rail Stage 3 from Broadbeach to Burleigh Heads. A further $700m is to be spent across forward estimates.
* $57.2m for the construction of three heavy rail stations at Pimpama, Hope Island and Merrimac. The total cost is $120m.
* $265m for the first stage of the Coomera Connection between Nerang and Coomera. The remaining $1.9bn will be spread over forward estimates.
* $180m for the continued upgrade of the M1 between Varsity Lakes and Tugun.
Some Gold Coast civic leaders say they are disappointed there was no move to fast-track the completion of the business case for light rail Stage 4 to the border, despite a ticking clock, construction delays and material cost increases.
“The important part is that we have funding for (light rail) Stage 3 and that it is in the forward estimates, which gives us confidence that it will be done by 2025,” Mayor Tom Tate said.
“The community consultation with the public on Stage 4 must proceed quickly and I know they have the funding for that. But once that is done we have to get the business plan sorted, which we will match dollar for dollar, and that’s about six months away.
“With the Coomera Connector funding arriving, this will mean we can plan and begin the construction for the council roads that will feed into it.”
Construction of light rail Stage 3, which has been beset by delays and cost blowouts, will begin within weeks after a contract was finally signed in March.
The project is expected to take at least three years to build.
The $2.7b Stage 4 Burleigh-to-airport tram extension was in limbo before May’s federal election when McPherson MP Karen Andrews told her own government to reject funding the proposal to run along the Gold Coast Highway through Palm Beach.
Her stance outraged both the state government and Gold Coast City Council.
Ms Palaszczuk told the Bulletin on Tuesday that funding deals would be done once the business case for Stage 4 was completed. However, she did not foresee the same long funding fights she had with the former Morrison government.
“I am quite sure we are going to have positive relations and very co-operative deals now with the (new) federal government on that,” she said.
“We will have timelines in place and as we go through the detailed planning, the business case will be submitted to the government, we’ll be able to get funding and then make further announcements.”
Revealed: What budget means for light rail, hospitals
The state government is embarking on the biggest health spend ever with the Gold Coast to get an early works start on the Coomera hospital and a satellite facility at Tugun.
Work will finally start on three major new rail stations, first promised in 2017, major construction on the Coomera Connector and light rail Stage Three.
Work will also be undertaken to finish the Varsity Lakes to Tugun upgrade on the Pacific Motorway.
Surprise budget gifts include disaster recovery funding for Binna Burra in the hinterland and a cash splash for The Spit and Currumbin Eco-Parkland.
The other shock was a surplus built on an economic wave post-Covid in Queensland and a big health spend delivered courtesy of a spike in mining royalties and stamp duty.
While handing down Tuesday’s State Budget, Treasurer Cameron Dick told parliament: “It is a budget that puts health care first.”
FIRST LOOK: GIANT $1.5BN PRIVATE HOSPITAL MEGA DEVELOPMENT
“It is a budget to propel us from times of tremendous disruption and turbulence towards a brighter horizon. A new era is dawning for Queensland,” he said.
Mr Dick announced a record $23.6 billion for frontline health services and high quality healthcare infrastructure in a budget he described as “the best one yet”.
“Today, our government commits $9.8 billion for a funding program to expand the capacity of Queensland’s health system, the biggest hospital building program in the history of Queensland,” he said.
“That commitment will deliver 2200 additional overnight hospital beds. There will be new hospitals in Bundaberg, Toowoomba and at Coomera.”
Among the new ambulance stations would be a facility at Ormeau along with redeveloped stations at Southport and Pimpama. Of 34 highlighted Gold Coast region budget items, at least eight were health-related.
The increase in fees and charges was 2.5 per cent — below the rate boost by most councils.
The key takeaways for the Coast are:
* $1.2b for light rail stage three Broadbeach to Burleigh, compared to $1.044b the previous year.
* $1.7b on infrastructure creating 5100 jobs, up from $1.3b in 2021-22.
* $73m on education, down from the previous two budgets where the spend was as high as $171m.
* $1.9b on health, slightly up from $1.8b in 2021-22 including $20 million for “early works” at the new Coomera Hospital.
* Tugun’s new satellite hospital is one of seven across the State and part of a $139.9m spend in the next 12 months.
* $265m out of $2.1b total spend on first stage of Coomera Connector from Nerang to Coomera.
* $57.2m out of $120m spend on three new rail stations – Pimpama, Hope Island and Merrimac – part of Cross River Rail upgrade.
* $180m out of the $1b spend on upgrading the M1 between Varsity Lakes and Tugun.
* almost $14m of $15m will be spend undertaking site acquisition on the Currumbin Eco-Parklands while $8.7m will help with building a jetty and pontoon at The Spit.
The government said in a statement: “Satellite hospitals will start to be operational from 2023.”
“The focus will be on day therapy and care for minor injuries and illness, helping to free up capacity in nearby hospitals” a statement read.
Premier Annastacia Palaszczuk said: “This is the biggest investment (in health) Queensland has ever seen.”
LIGHT RAIL ROUTE TO BE SURROUNDED BY TOWERS
“It will be delivered over the next six years. We have listened to Queenslanders,” she said.
Gaven MP Meaghan Scanlon told the Bulletin the budget recognised the rapid increase in population and demand for services on the Coast.
“The Palaszczuk Government has a proud record of delivering extra health services and that is exactly what we are seeing on the Gold Coast,” Ms Scanlon said.
Mr Dick said the Government would spend almost $59.3 million over the forward estimates to support the Brisbane 2032 Taskforce as it leads 2032 Olympic and Paralympic Games activities across government.
“This will support preparation of the 2032 Games Legacy Program and inform design of Games infrastructure, including venues and athlete’s villages,” he said.
The budget papers do not drill down to Coast-specific Olympic projects like the athletes village at Robina.
EVERY NEW GOLD COAST TOWER AND THEIR DEVELOPERS
Transport documents also do not refer to light rail stage four planning, where Mayor Tom Tate and a majority of councillors had hoped to see more forward funding.
The Treasurer announced a budget surplus of $1.9 billion for the 2021-22 Financial Year.
“That compares to a projected deficit of $1.4 billion at the Budget Update in December, and a projected deficit of $3.4 billion at the time of last year’s budget. I am also pleased to announce that this financial year our net debt will be reduced by $6.146 billion compared to the forecast in December last year,” he said.
Budget strategy papers said the State’s economy had “outperformed the rest of the nation” since the onset of the Covid pandemic. After rising 2 per cent in 2020-21, the State’s economy is forecast to growth by another 3 per cent in the next 12 months.
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