M1 Varsity Lakes to Tugun upgrades to cost half a billion more

The federal government has joined the state government in committing huge sums of money to prevent work on partially built upgrades to the M1 from grinding to a halt.

The state government has been forced to commit half a billion dollars to keep M1 upgrades on the southern Gold Coast on track after a major cost blowout.

Transport Minister Mark Bailey on Saturday said workers would have been stood down and work would have ground to a halt without the new funding commitment on the partially built Varsity Lakes to Tugun upgrade, which was originally due to cost $1 billion in total.

In a blistering media statement issued by Mr Bailey’s office, the Federal government was blasted for “refusing to meet its fair share” of the extra costs, saying the Transport Department had sought $250 million from Canberra under a 50:50 funding split but had only been provided $70 million in extra funds across the entire M1 corridor.

Traffic on the M1 southbound between the Bermuda Street and Robina Parkway exits in April 2021 during work on the upgrades. Picture: NCA NewsWire / Scott Powick.

“The Varsity Lakes to Tugun (VL2T) upgrade has navigated a number of unprecedented issues, including the COVID-19 pandemic, subsequent supply chain delays and nationwide cost escalations,” Mr Bailey said.

“When complete, VL2T will be a game-changing upgrade for M1 commuters.

“Despite this additional investment by the Palaszczuk Government, saving hundreds of jobs, it still remains at risk as part of the M1 Pacific Motorway package in the Federal Government Infrastructure Review.

“The corridor program proposed by the Australian Government provides insufficient funds to deliver all the projects included and will require the Queensland Government to determine which to cut and continue.”

Transport Minister Mark Bailey and Treasurer Cameron Dick beside the M1 at Varsity Lakes in 2018 for an announcement about funding of upgrades. Picture: Adam Head.

The Transport Department said work on the upgrades, which began construction in May 2020, had been severely impacted by weather events and the discovery of PFAS and asbestos.

A first section, from Varsity Lakes to Burleigh, was completed late last year while work continues from Burleigh through to Exit 95 at Tugun.

State government sources said it had been negotiating with the Federal government for months on funding for the cost blowout to no avail.

News of the M1 blowout comes after the Courier Mail on Friday reported that taxpayers will be forced to spend an extra $2.5 billion to build the Gold Coast faster rail project, which is now tipped to cost “a bit more” than $5 billion.

It came as the Albanese government swung the axe on Queensland infrastructure projects, with hundreds of millions worth cancelled and many more placed in doubt.

Treasurer Cameron Dick said there had been cost overruns in multiple projects across the state.

“Significant (cost) escalations have been happening over time for all sorts of projects. But the fundamental principle for Queensland is we fund into escalation. That’s what we do as a state,” he said.

The federal government has chipped in an extra $70m for the M1 upgrade.

Gold Coast-based federal Labor Senator Murray Watt said the government had increased its funding for several key Gold Coast projects as a result of its infrastructure review which was announced last week.

“The Albanese Government is delivering over $2.5bn extra for Queensland road and rail projects, including the M1 upgrade at Tugun, faster rail for the GC and road upgrades in Beenleigh and Loganlea,” he said.

“As part of the extra funding, we’ve also committed $250m in unallocated funding, available for cost overruns or new projects, to be decided with the Queensland Government.

“We’re helping state governments to meet cost pressures, while responsibly keeping a lid on inflation so that Gold Coasters don’t have to pay more on their mortgages and supermarket bills.”

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