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Queensland projects worth $14b at risk from federal cuts: Miles

Mark Ludlow
Mark LudlowQueensland bureau chief
Updated

Queensland Deputy Premier Steven Miles and a delegation of regional mayors will demand federal Infrastructure Minister Catherine King recommits to 50:50 funding for key road and rail projects or risk $14 billion in projects being cancelled in the state.

Still reeling after the Albanese government cut $7.4 billion from infrastructure funding across all states and territories this month, Dr Miles said the delegation would also seek assurances about the fate of other projects in transport corridors in the state.

The Palaszczuk goverment says the Bruce Highway from Brisbane to Cairns is the “backbone of the state”. 

“Our concern is about road funding dropping off going forward,” Dr Miles said before departing for Canberra.

“We’re not looking for massive escalations in Australian government contributions, but we do want to know how it intends to fund roads beyond the projects that are currently funded, and particularly in that period of time beyond the forward estimates out to 10 years,

“Our roads require long-term certainty and long-term planning and I don’t think it’s too much to understand exactly where the Australian government sees that funding.”

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After a review of the $120 billion, 10-year infrastructure program, Ms King announced the cuts to 50 major projects, including $220 million in Queensland, although an additional $6.7 billion was allocated to other projects across the country to help alleviate the decision.

The Palaszczuk government has claimed the change in the federal funding model from an 80:20 split to 50:50 would result in a reduction of $6 billion on crucial upgrades of the Bruce Highway over the next 10 years.

The lack of federal funding for key projects such as the Sunshine Coast rail, which is now contingent on a business case, could jeopardise preparations for the 2032 Olympic Games.

Premier Annastacia Palaszczuk described the proposed cuts as “outrageous”.

Mayors joining the trip include Isaac Regional Council Mayor Anne Baker, Flinders Shire Council Mayor Jane McNamara, Western Downs Regional Council Mayor Paul McVeigh, Redland City Council Mayor Karen Williams, Bundaberg Mayor Jack Dempsey and Ipswich Mayor Teresa Harding.

Transport Minister Mark Bailey said Queensland’s vast transport network throughout a decentralised state made its infrastructure needs different to those of smaller states such as Victoria or Tasmania.

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“The level of road infrastructure is the biggest in the nation. It deserves to be treated in its own context,” he said.

“When you have a state the size of Queensland – bigger geographically than 180 nations around the world – we needed to be treated differently than smaller states.”

The Palaszczuk government has committed $107 million in early works to the $1 billion 1185-kilometre Inland Freight Route between Mungindi and Charters Towers.

The Queensland government said it was honouring an 80:20 funding commitment to the freight corridor, but Mr Bailey said they would welcome extra federal funding for the project.

It comes as Mr Bailey confirmed the next stage of the Gold Coast Faster Rail project had doubled in cost to $5.75 billion – mirroring cost blow-outs on other big rail projects.

Mark Ludlow writes on politics, energy and infrastructure based in Brisbane. Connect with Mark on Twitter. Email Mark at mludlow@afr.com

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