Additional Cairns water security federal funding lower priority in cost of living budget: Nita Green
The federal government’s “responsible budget management” leading to a second straight surplus is yet to find room for Cairns’ water security project as cost of living relief takes priority.
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The federal government’s “responsible budget management” leading to a second straight surplus is yet to find room for Cairns’ water security project as cost of living relief takes priority.
Two years ago the federal and state governments together committed to covering the bulk of the Cairns Water Security Stage 1 project’s $248m price tag, but inflation was later blamed for that figure being revised to $472m in December and in June Premier Steven Miles poured in an extra $87.5m.
While Cairns-based senator Nita Green initially defended the federal government’s decision to forego providing additional funding to the project in May’s budget, in August she said she would be calling on her Canberra colleagues to match the state’s commitment.
“Have you met me? I’m very good at campaigning,” Ms Green said in August.
Asked for an update last week on funding negotiations, Ms Green said “we’re mindful that there are some pressures on the budget right now”.
“We need to make sure we are dealing with the cost of living and we want to make sure that there is enough room in the budget to do that and to fund things that really make a difference for people on the ground right now.
“In terms of long-term infrastructure investment – that’s something that we’re keeping an eye on as well because we don’t want to add to inflation, that would make cost of living worse, so we are balancing the budget in a responsible way, something the previous government didn’t do.”
The federal government has been criticised for contributing to inflation with its public spending as it revealed a higher-than-expected second budget surplus last week of $15.8bn.
Cairns Regional Council deputy mayor Brett Olds said the water security project, which formally commenced in August, was financed by the state and federal governments over two years and while the additional funds weren’t immediately required, “we would absolutely love a commitment sooner rather than later”.
“It’ll definitely make the planning towards our next budget process less burdensome,” he said.
“Because if they don’t come on-board, council will have to borrow the money and ratepayers will have to pay it back with interest.”
Had the state government not drummed up extra funds, ratepayers would have been slugged an extra $488 per year over 15 years.
Leichhardt MP Warren Entsch said compared to the federal spend for water supply in Townsville, Cairns’ ask was minimal and called on the government to make an immediate commitment.
“It’s water, it shouldn’t be looked at, it just needs to happen. Just lock the money in now so the council can make a plan for its ratepayers.”
The outgoing MP said beyond additional water security funding, he had been advocating for an additional $40m for the $50m CQU Cairns City campus – a bipartisan 2022 election commitment.
Commenting on the budget surplus, Mr Entsch questioned why “no one” was talking about “retiring debt” and reducing the country’s interest bill, while Kennedy MP Bob Katter called for the surplus to be invested in “money-generating” projects.
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