Former State Government directed department to start talks for Common User Facility funds

Former Labor MPs claim costs for the marine Common User Facility couldn’t have blown out if works hadn’t started, noting a department was directed to begin negotiations for additional funds.

State Labor MPs won’t deny it – they’ve paid the price for their government’s handling of major infrastructure projects, at the election.

But they refuse to accept new Transport Minister Brent Mickelberg’s assessment of the Cairns Common User Facility being a “cost blow out”.

The State Development Department was working through the planning of the CUF, which according to former Transport Minister Bart Mellish included “ongoing involvement” with Port Norths which was to become the end recipient of the project.

“There was never any ‘dumping’ of the project before the election, why would do you that from one government department to another,” he said.

Former Premier Steven Miles with former Development Minister Grace Grace, and former Transport Minister Bart Mellish.

“All those costs and changes were part of the due diligence of the planning work being undertaken.”

Through those planning processes, Mr Mellish said it was recognised the facility would now cost “in the ballpark” of what Mr Mickelberg revealed, and in April the Cabinet Budget Review Committee acknowledged the new cost of the project and agreed it would proceed. The committee had directed the Development Department to negotiate with the Federal Government to determine a new funding split.

The planning process had ultimately unveiled what Leichhardt MP Warren Entsch had claimed from the beginning – that $360m would never be enough and the project would require about $600m based on advice he had received in 2022.

Treasurer Jim Chalmers and Member for Cairns Michael Healy inspect work being undertaken on Australian Defence Force vessels at the Cairns Marine Precinct. Picture: Brendan Radke

While the former state government failed to publicise the figure, Cairns MP Michael Healy said he had been advised discussions with the federal government had started on the new sum required.

“This is part of their strategy to deal with cutting programs,” Mr Healy said in relation to calls of CUF’s revised cost.

“Yes we announced $360m in joint funding, but there was a whole lot of planning that needed to go into it – that’s where you go from an estimated cost, to the actual cost.

“And so we started having those discussions with the feds. You can’t have cost blowouts on a project you haven’t even started on.”

On Wednesday Mr Mickelberg said the current funding allocated had not been withdrawn and when asked on numerous occasions if the CUF was set for the chopping block he insisted he was committed “to infrastructure for Far North Queensland”.

Mr Healy the CUF was essential for the long-term prosperity and diversification of North Queensland’s economy.

“I can’t see why David Crisafulli can’t find the money for Cairns when he hasn’t batted an eyelid at spending an extra $10bn on CopperString for Townsville, the Cross River Rail in Brisbane and extending the Sunshine Coast heavy rail line.”

Originally published as Former State Government directed department to start talks for Common User Facility funds