$5.3m to fix defective toilets and corridors on new trains

Taxpayers face being slugged millions of dollars for every toilet installed on Queensland’s 35 newest passenger trains.

Premier Annastacia Palas­z­czuk’s cabinet will today consider the damning findings of an inquiry into the $4.4 billion New Generation Rollingstock trains. Picture: AAP

Taxpayers face being slugged millions of dollars for every toilet installed on Queensland’s 35 newest passenger trains, as the bill to clean up the state’s rail fiasco rockets towards $400 million.

Premier Annastacia Palas­z­czuk’s cabinet will today consider the damning findings of an inquiry into the $4.4 billion New Generation Rollingstock trains, which had narrow corridors and inaccessible toilets that breached disability laws.

Although Labor has blamed the Liberal National government for ordering cheaper carriages from India, the report found the procurement process was undermined by erratic government under both parties.

During last year’s state election campaign, Ms Palaszczuk instructed the NGR’s lead contractor, Canadian company Bombardier, to ensure the trains were rectified at Downer Rail’s workshops in the marginal Labor-held seat of Maryborough.

Retired judge Michael Forde, who led the inquiry, last week said the ongoing dispute between the government and the NGR consortium over the additional works could end in litigation.

The Australian understands the government has obtained legal advice through Crown law estimating taxpayers’ liability to the consortium of about $250m. This is on top of an estimated $150m to modify the defective trains, sources said.

Transport Minister Mark Bailey declined to answer questions about the legal advice.

“Modifications to improve the NGR trains’ accessibility required redesign work and collaboration with key stakeholders, including the disabled,” he said. “We are in negotiations over the commercial requirements to do this work with the Qtectic consortium now.”

The NGR’s original design included toilets on each of the 75 trains. However only 35 trains will have toilets after the refit, with the remaining 40 trains confined to suburban routes. Other modifications include changes to the train guard compartments.

If the blunder costs taxpayers $400m, it would equate to more than $5.3m per train.

Mr Bailey, whose government has imposed a contentious “Buy Queensland” procurement policy, insisted it was “more cost effective and efficient” to modify the trains locally.

“We make no apologies for bringing this work back to Queensland and to Maryborough — a city with a proud rail history,” Mr Bailey said.

“The Palaszczuk government will ensure new rail manufacturing and retrofit contracts are carried out by Queensland workers.”

Mr Forde’s report criticised the “disrupted” procurement process that started in 2008 under Labor’s Anna Bligh and continued under Campbell Newman’s LNP, which announced Bombardier as the winning contractor in 2015. The project started with Queensland Rail but was later transferred to Projects Queensland, then state Treasury and finally to Transport and Main Roads. This fomented tensions and poor communication between the different agencies, according to Mr Forde.

The inquiry found no evidence that ministers or senior public servants were warned in advance that the trains would be defective.

When the LNP announced the contract in January 2014, it said the half-price trains would be delivered “over the next five years” with “no hidden surprises for taxpayers”. One month away from that deadline, only 37 of 75 NGR units are available for service.

Former Liberal MP Michael Caltabiano, director-general of transport when design changes were reportedly approved, declined to be interviewed.

Labor and the LNP blame each other for Downer withdrawing from the tender process in 2011. Downer has since said it was influenced by a similar deal with the NSW government which soured.