Calls for state government to commit to marine facility funding shortfall

Cairns advocacy groups and leaders are calling on the state government to commit to additional funding for Cairns’ major shipyard project after the state government claimed Labor left them $422m over budget.

The Coral Knight, a 61m Emergency Tow Vessel operated by the Australian Maritime Safety Authority, is currently being surveyed for maintenance work at Tropical Reef Shipyard. Picture: Brendan Radke

Cairns advocacy groups and leaders are calling on the state government to commit to additional funding for Cairns’ major shipyard project after Labor was accused of leaving the project $422m over budget.

The calls come as the NT government committed a further $305m to ensure their shiplift project of a similar size is funded, sparking fears Cairns could fall behind a potential competitor.

Advance Cairns CEO Jacinta Reddan said the community and stakeholders were in limbo waiting for certainty and commitment from the government.

“The funding figure was arrived at 4-5 years ago pre-covid and since then materials costs, labour and supply chains have changed drastically, seeing infrastructure project costs around Australia blown out across the board, so it is no surprise that more funds are needed,” she said.

“We are concerned, and the industry is concerned, that the new figure has not been released.

“There is speculation as to just how committed the state government is to this critical piece of infrastructure.

“It’s the single biggest investment in the region for infrastructure since the international airport and it will have a major impact on the wider regional economy. It is vital.”

At the Cairns Marine Precinct are Norship ISS manager Steve Howarth, Norship defence operations manager Stuart Hodgson, Federal Treasurer Jim Chalmers, Member for Cairns Michael Healy, Austral general manager for Queensland Phil Growden, Norstar’s Gillian Shaw and Tropical Reef Shipyard general manager Robert Downing. Picture: Brendan Radke

Cairns Chamber of Commerce CEO Patricia O’Neill said without commitment to the common user facility (CUF), Cairns risked turning away potential business.

“It’s not a deliberate ask for more money, it is the reality of what it is going to cost to build it,” Ms O’Neill said.

“If we can get the economies of scale right the government should be able to see the bigger picture of the benefits it will bring to this city.

“As the clock is ticking, we are running the risk of losing potential big contracts to other parts of Australia.”

In December, last year Transport Minister Brent Mickelberg said the budget for the Cairns Common User Facility had blown out by hundreds of millions of dollars to $826m.

The delivery of the project was handed over to Ports North late last year, which conducted a review into estimated costs and the scope of the project.

Transport Minister Brent Mickelberg and Maryborough MP John Barounis.

The review subsequently identified several assumptions and estimates which were inconsistent with the requirements of the project, and required a recast of the cost estimate.

This revised estimate was considerably more than the currently committed $387m.

Ports North has since undertaken a reassessment of scoping and cost estimates to ensure the delivery of a commercially viable CUF, which was expected to be delivered by February this year.

Ms Reddan called on the state government to reveal if the assessment had now been completed, what the new figures were and for them to commit to meeting future costs.

“It is no surprise to anyone that the number has blown out,” she said.

“We would expect that the commitment to our region remains solid. We want to see that commitment honoured.

“Really, we are in a state of limbo and would like to see that extra funding delivered so work on the project can continue.”

She said Advance Cairns had written to the state government urging that the revised cost be released and had raised the issue with the Federal Minister for Defence Richard Marles when he was in Cairns recently.

“We will be looking very closely at the June 24 state budget to see that the state funds already allocated to deliver on the CUF in the forward estimates remain and that additional funds are earmarked,” Ms Reddan said.

Cairns MP Michael Healy said the CUF was fundamental to the region’s growth and the LNP had “vacated the spot”.

Cairns MP Michael Healy says it “would be an absolute betrayal to the people of Far North Queensland if the right amount of money was not invested”. Picture: Brendan Radke

“It would be an absolute betrayal to the people of Far North Queensland if the right amount of money was not invested,” he said.

“With the political climate in the Asia-Pacific region, this is a perfect opportunity for our city and region to be able to capitalise and we need the state government to recognise that and put some real money into the north.”

In a statement, Mr Mickelberg maintained that Labor “bungled” the CUF by “mismanaging it from the get-go” and blowing out the budget by $466 million.

He did not confirm if the new costings had been made available to him and didn’t provide any indications of further funding.

“I have had ongoing meetings and briefings with Ports North who are in the process of investigating design options,” he said.

“We look forward to working with Ports North and the federal government to deliver for the Far North and the marine industry.”

Barron River MP Bree James said she had been briefed on the progress of the CUF but was unaware if the reassessment had been completed and presented to the minister.

“If you are going to do it, you need to do it right,” she said.

“I am confident that we will deliver what is right for the taxpayer and our region.”

Originally published as Calls for state government to commit to marine facility funding shortfall