Townsville Mayor says council will work to minimise pipeline costs
Mayor Jenny Hill has denied suggestions people were unaware that ratepayers would contribute to Haughton pipeline costs.
Townsville
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MAYOR Jenny Hill has denied suggestions people were unaware of added costs of up to $79m ratepayers would have to wear to develop stage two of the Haughton water pipeline.
But she has committed to minimising “any impact on ratepayers” and says Townsville City councillors are keen to maintain some of the “cheapest water in the state” that people currently enjoy.
A $274m cost to develop Haughton stage two, including a council agreement to cover $79m of that cost, was revealed on Friday when the state government announced the council had signed off on a “detailed road map” for the project.
The council is said to have agreed to the costs in a closed meeting on September 22.
Water for Townsville Advocacy Group founder Linda Ashton said there had been a lack of transparency and consultation and they were unaware of the additional costs.
Ms Ashton said the group expected there would be a cost blowout because of the extra time being taken to start work and because of Covid-19.
“We thought the state would fully fund stage two,” she said.
Cr Hill said a Jacobs business case, published in May 2019 and publicly available, had identified stage two, including appropriate contingency, would cost about $310m.
“Anyone who had an interest in this project and who had read the Jacobs report knew that the $195m committed by the Australian government, but now being provided by the Queensland government, was never going to cover the whole cost of the project,” Cr Hill said.
She said the council had started work on planning for stage two as soon as the federal government made its commitment to the project.
The Bulletin reported in July 2019 that Deputy Prime Minister Michael McCormack had confirmed the federal government would provide up to $195m for stage two.
Cr Hill said that by the time the state government announced it would instead provide $195m previously committed by the federal government – in August 2020 – ground investigations and pipeline alignment feasibility studies were already under way.
It was in the interests of transparency that the update was provided on Friday.
“Council will continue to put as much downward pressure on costs as possible as the project proceeds,” Cr Hill said.
“Council’s financial contribution to the total cost of the project, whatever that ends up being, will be considered as part of future budget deliberations.”
“INCOMPETENCE”: Thompson lashes Mayor over $79m blowout
Herbert MP Phil Thompson has fired a savage salvo at Townsville Mayor Jenny Hill over the added $79m bill to the city’s water security pipeline, saying the extra financial burden comes down to Cr Hill’s “incompetence”.
Townsville City Council has formally signed off on the project, including the increased budget and funding the costs above the $195 million being provided by the state government.
“Over the past few hours, I have been inundated with messages from our community who are furious to learn that they’ll now be footing a $79m bill due to the incompetence of our Mayor,” Mr Thompson said.
“Mayor Hill backed her Labor mates in Brisbane when they refused to take Federal funding for this project and promised she could deliver it on time and on budget with State funding.
“We now know the Mayor’s promise to the people of Townsville to deliver this project on time and on budget was a lie.”
Stage one of the project — duplicating an existing pipeline between Ross River Dam and the Haughton irrigation channel — was completed last year, while stage two is to extend the pipeline to the Burdekin River at Clare.
“Today I call on Mayor Hill to confirm that her mismanagement of Stage Two of the Haughton pipeline will not result in the people of Townsville being slugged with another rate rise,” Mr Thompson said.
“I have written to the Mayor and asked for an iron clad guarantee that a rate rise is ruled out.
“We are now looking at a project blow out of some 41%- imagine if we all ran our household budgets with such incompetence.
“The project delays and cost blowout are completely unacceptable.
“Townsville already has some of the highest rates in the State after Mayor Hill’s continued rates increases- locals simply cannot afford to foot the bill for her incompetence in managing this project.
“It is not right that the hardworking ratepayers of Townsville are now going to be slugged an additional $79m because the Mayor and her Labor mates decided to play political games instead of getting on with the job of delivering this project.”
Townsville council to fund $79m additional costs for water pipeline
TOWNSVILLE’S water security pipeline has taken another twist with revelations the cost for stage two has blown out to $274 million and ratepayers will wear the added $79 million bill.
According to an announcement, Townsville City Council has formally signed off on the project, including the increased budget and funding the costs above the $195 million being provided by the state government.
Stage one of the project — duplicating an existing pipeline between Ross River Dam and the Haughton irrigation channel — was completed last year, while stage two is to extend the pipeline to the Burdekin River at Clare.
Prime Minister Scott Morrison announced $200 million in funding for stage two, including $5 million for a business case, in 2018.
But the state government announced in 2019 it would provide $195 million itself because the Federal Government would not exempt its funding from assessments for GST, claiming it meant $156 million would be clawed back.
Premier Annastacia Palaszczuk said stage two would “go a long way” in ensuring Townsville water security for decades to come.
“My government knows how important this project is for Townsville’s future and that’s why we are providing $195 million in funding,” the Premier said.
“This project will also support hundreds of jobs during construction, boosting North Queensland’s economic recovery.”
Mayor Jenny Hill said a considerable amount of planning had been undertaken by the council officers and specialist consultants in the past 12 months.
“Completing the second stage of the Haughton pipeline will give Townsville the water security it needs as it grows over the next 50 years,” Cr Hill said.
“It realises the recommendation made by the Townsville Water Security Taskforce’s final report of November 2018 that a pipeline be constructed between the Ross River Dam and the Burdekin River near Clare to enable the dam level to be managed to best deliver water to the city.
“I thank the Premier and her Ministers for their willingness to work with council to deliver this game-changing infrastructure for our city.”
Cr Hill said the council would fund all costs above the $195 million provided by the State Government.
“The council is committed to securing Townsville’s water security and this project will do that,” she said.
“It will mean that council will need to provide up to $79 million to fund this vital investment in our city’s long-term future.
“We will manage the risks in this project closely to put downward pressure on costs, but we are not going to cut corners. This piece of infrastructure will provide water security for the next 50-80 years and we will do it right.”
Townsville Water and Waste Committee chair Russ Cook said Townsville councillors were briefed on the project recently.
“Anyone who has built major infrastructure like this knows it simply doesn’t happen overnight, and this stage of the project has presented a variety of different challenges compared to stage one,” Cr Cook said. “Detailed design work for the pipeline and pump station will now be finalised with delivery partners
“The tender for long lead items, such as pipes and pumps, will be released by the end of 2021, while the tender for the construction of the pipeline will be released in early 2022.
“Construction of the pipeline and pump station is expected to be complete by the end of 2024 with testing and commissioning to be finalised by March 2025.”
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