Transport Minister grilled over $2.4 billion train blowout

A stuff-up or a cover-up? That was the question that dominated Transport Minister Mark Bailey’s time in the budget estimates hot seat on Tuesday, as he was grilled over a $2.4 billion cost blowout of Queensland’s train building program.

The LNP opposition has accused Bailey of deliberately misleading Queensland taxpayers over the cost of the government’s contract with Downer to build 65 passenger trains in Maryborough, about 220 kilometres north of Brisbane.

‘There was a stuff-up’: Mark Bailey.Credit: Olive + Maeve

The contract was signed on June 29, the day before a media release was distributed referring to the state’s “$7.1 billion Queensland Train Manufacturing Program”.

However, it has emerged both Bailey’s office and that of Premier Annastacia Palaszczuk, in whose name the media release was jointly attributed, were aware the actual cost had been revised to $9.5 billion.

The $9.5 billion figure was also published on the Transport and Main Roads website the day of the release from the ministers’ political offices.

Bailey has apologised for what he called an oversight in his office. The figure in the media release was incorrect, he said, because of staff error due to the draft being written before the contract was finalised.

“We did not have a final contract figure until the 29th of June, because negotiations were continuing,” he told estimates on Tuesday.

“So we did not have a figure and therefore, that’s why that was taken out so that in case the numbers shifted, that would be correctly inserted.”

Ultimately, he said, that number was not correctly inserted, so the media release was sent out with outdated information.

“There was a stuff-up, I’ve apologised for it, I’ve taken responsibility,” Bailey said.

But in a heated meeting of state parliament’s Transport and Resources Committee, Transport and Main Roads acting director-general Sally Stannard confirmed Bailey’s office had subsequently suggested the $9.5 billion figure be removed from TMR communications in the days after the incorrect release came out.

Under questioning from Deputy Opposition Leader Jarrod Bleijie, Stannard confirmed Bailey’s office had offered “suggestions” about TMR messaging concerning the rail build on July 3.

“Did any of that communication contain the word ‘delete’?” Bleijie asked.

Stannard: “After the word ‘consider’, the email contained the word ‘delete’.”

Bleijie: “So the minister’s office did ask the department to delete the $9.5 billion figure for the train manufacturing program?”

Stannard: “The minister’s office provided a couple of things to consider in that email request.”

Stannard said TMR regularly received suggestions from the minister’s office, which differed from directions, which had to come directly from Bailey.

“The feedback was about a comms brief, it provided a couple of things for us to consider. One of those considerations was to review the reference to the contract value with Downer,” she said.

Stannard told the hearing the $9.5 billion provided for maintenance over a period of 35 years, which had not yet been contracted.

“So on that basis, it is an estimate of a future cost that we expect to incur for the maintaining of those trains over their full life,” she said.