Labor accuses LNP of inflating project ‘blowouts’ to claim future wins

The news

Queensland’s Labor has accused the new LNP government of seeking and sharing inflated cost estimates of major projects to enable it to claim future success reining-in budgets.

Opposition Leader Steven Miles fronted media in Brisbane on Thursday where he was asked about one of the most recent examples in the rebuild of a trouble-plagued dam near Bundaberg.

“Are they simply saying to Treasury, ‘oh, give us the biggest number that you can right now, so that when we come in below that number, we look better than them [Labor]’,” Miles said.

The LNP has accused Labor under former Premier Steven Miles of being aware of, and not being upfront with the public about, project cost overruns it claims to have uncovered since winning government.Credit: Photograph Joe Ruckli | Australian Financial Review

“I think that’s what’s happening here … They seem to be selectively quoting Treasury briefing notes – that’s not where you get these costings from.”

Why it matters

The LNP campaigned on a promise of delivering projects on time and budget, without clearly detailing how it would do so beyond “respecting” taxpayers’ money.

Since its October election win, the party has talked up the disputed prospect of trimming costs by scrapping a union-friendly major project procurement policy and reopening tenders.

This has been paired with a near-daily drip-feed of stated project cost increases, modelled impacts of the policy on the housing sector, and warnings about the state’s budget bottom line.

Miles’ comments marked his first media appearance since the Labor partyroom’s last-minute change in position on the LNP’s flagship youth crime laws before their passage last Thursday.

What they said

Labor has repeatedly accused the LNP of “cooking the books” with post-election project cost claims, with Miles on Thursday making some of the party’s most explicit accusations yet.

His comments about the LNP purposefully seeking or selectively quoting internal advice about projects costs came amid questions about recently dam improvement work estimates.

While acknowledging he had said the Paradise Dam rebuild was likely to go beyond the initially estimated $1.2 billion figure, Miles said this was based on most construction costs having risen.

He noted a detailed business case was still not finalised, and described any cost estimates before that as “hypothetical” and “largely requested for political purposes”.

Miles was also questioned about internal party debate on its majority decision to back – while criticising – the LNP’s youth justice laws and the public detail which emerged.

He said he caught up with outspoken Cooper MP Jonty Bush who was a “valued member of the Labor team” and had committed to remaining in the party, despite saying she would consider her future.

Any future justice system changes would be considered on their merits, Miles said, noting that the bill passed last week was, in his view, “the extent of the mandate [the LNP] took to the election”.

Another perspective

The LNP has accused Labor of being aware of, and not being upfront with the public about, project cost overruns it claims to have uncovered since winning the election almost two months ago.

In a statement, Finance Minister Ros Bates stood by the LNP’s claims of cover-ups by the former government, which she described as presiding over the “worst decade in Queensland’s history”.

What you need to know

One of the LNP’s most recent “hidden” cost blowout claims involved including maintenance and rail buses in the Cross River Rail budget, but refusing to give a detailed breakdown.

Detail previously requested by this masthead around how Treasury came to its estimated impact of the so-called “CFMEU tax” on housing stock and rents has also not been provided.

What’s next

Treasurer David Janetzki is preparing to deliver a delayed mid-financial year budget update in late January.