Premier orders investigation into $2.4bn train cost blowout

Annastacia Palaszczuk has ordered a high-level review into Transport Minister Mark Bailey’s trains manufacturing costs blowout cover-up.

• Editor’s view: Better late than never

Premier Annastacia Palaszczuk has ordered a high-level review into Transport Minister Mark Bailey’s trains manufacturing costs blowout cover-up.

The Premier said on Thursday she had personally asked her director-general to investigate the circumstances around an email sent by Mr Bailey’s office to his department asking for a reference to a $2.4bn blowout be “deleted” from public view.

Ms Palaszczuk – who has managed to mostly avoid questions over the ongoing fallout of the alleged cover-up by travelling throughout regional Queensland this week – revealed the review in a press conference at Longreach on Thursday.

But Ms Palaszczuk repeatedly refused to answer what the scope of the investigation would be – saying questions would have to be directed to her director-general, Rachel Hunter.

The Courier-Mail was also told by the Premier’s staff all questions on the matter should be referred to Ms Hunter.

But Ms Hunter’s spokesman refused to answer what the scope of the review would be, and whether Ms Hunter would also review how a Premier’s office staffer inserted the incorrect, cheaper figure into a June 30 public press release.

A review will be conducted into the $2.4bn cost blowout of train manufacturing.

Questions to Ms Hunter on whether she would commit to making the findings public, and how long the review would take were also not answered.

Instead, a spokesman said “steps for an independent review of the email are underway. It is not appropriate to make further comment.”

On Tuesday TMR Acting Director-General Sally Stannard sensationally revealed the department received an email from Mr Bailey’s office on July 3, which asked TMR to delete the true $9.5bn cost of the Queensland Trains Manufacturing Program from its communication, even though the final deal was done.

In the email, Mr Bailey’s office crosses out a reference to the “$9.5 billion” investment in red, and asks the department to “delete reference to $9.5 billion and the largest investment in Qld’s history. Talk about the $4.6 billion contract with Downer …”

It appeared to conflict with Mr Bailey’s previous explanation that the publication of a press release with the old $7.1b on June 30 was a “stuff-up” and an “error” – and the reason it was removed from a draft version by his office before being sent on to the Premier’s office was due to the contract not being signed.

Minister for Transport and Main Roads, Mark Bailey answers questions during a Transport and Resources Committee Estimates Hearing at Parliament House.

The Courier-Mail first revealed the government’s highly-spruiked program to build 65 new trains in Maryborough had blown out by $2.4bn in mid-July.

Mr Bailey announced the deal was done on June 30, but did not reveal to Queenslanders the project cost had increased. A press release sent out on the same day under his and Ms Palaszczuk’s name had the incorrect figure of $7.1bn.

Since then, it was revealed a draft press release created by TMR and sent to Mr Bailey’s office had the $9.5bn figure originally, which was deleted by Mr Bailey’s office.

A version was then sent to the Premier’s office where the old, cheaper figure of $7.1bn was inserted, with Ms Palaszczuk later blaming that error on an ill staffer working from home.

Both Mr Bailey and Ms Palaszczuk have admitted they knew about the cost increase, but Mr Bailey told this week’s estimates hearing he couldn’t recall when he informed the Premier.

Originally published as Premier orders investigation into $2.4bn train cost blowout