Government highlights job creation aspect of $5.5 billion Inland Rail cost blowout

It was meant to be a roughly $10 billion project. Now the Government is throwing another $5.5 billion at it to make it “safer and more efficient”.

The Melbourne to Sydney leg of the Inland Rail project under construction. Picture: Contributed

The Federal Government says it’s delivering a “safer and more efficient Inland Rail” while generating thousands of extra jobs and billions in additional economic activity.

But it will come at a cost – an additional $5.5 billion to be exact – taking the total project cost to $14.5 billion.

In the Darling Downs, the project has been praised for its job-creating potential in some quarters and criticised by landholders worried about the impact of running a rail line across the width of the Condamine flood plain.

With the additional $5.5 billion injection of equity funding into project proponent Australian Rail Track Corporation, the Federal Government has now locked in design changes which it says will “deliver a stronger Inland Rail, with the design now including more than 4500 additional culverts, nine additional viaducts, an additional 6.8 kilometres of bridges, 10 extra grade separations, approximately 450 kilometres of additional fencing, as well as removing 139 level crossings.”

Detail on where the extra money will be spent across the 1700km project is yet to be provided by the Deputy Prime Minister’s office.

“Inland Rail is a jobs bonanza. It’s already supporting thousands of jobs, has already started to generate billions in economic activity and will eventually lead to a boost of more than $18 billion Gross Domestic Product during construction and in the first 50 years of operation,” DPM Michael McCormack said.

The government said Inland Rail would now support more than 21,500 jobs at the peak of construction and deliver an extra economic boost of $2 billion.

Taxpayers ‘should be asking questions’

Wes Judd’s assessment of the Federal Government’s announcement of a $5.5b increase to the cost of the Inland Rail project while at the same time touting the thousands of extra jobs the project would create was blunt.

“To come out and announce this like they have, they’re trying to manipulate a s*** sandwich story to a wonderful outcome because we’re going to give all these people jobs,” the chair of the Millmerran Rail Group said.

“It just looks incompetent.

“I think the taxpayer has got the right to really start to ask some heavy questions about this.”

The MRG has been opposed to the Inland Rail route’s crossing of the Condamine flood plain since it was announced in September 2017, on the basis it could increase flooding risk.

Last month during a visit to the region, Deputy Prime Minister Michael McCormack said it was “time to get on with the job” of building the Inland Rail project.