State knocks back Federal cash for pipeline project

The State Government says it will fund the next stage of Townsville's Haughton water pipeline project itself after a dispute over GST linked to $195 million in federal funding. Queensland Treasurer Cameron Dick described federal MP Phillip Thompson’s funding pledge as worthless, giving $195 million with the one hand but taking back $156 million with the other through a GST clawback. “The people of Townsville need more than the measly $39 million the federal government is offering for this project, so we have taken the decision to kick them out," he said. Member for Mundingburra and Minister for Communities, Disability Services and Seniors Coralee O’Rourke said the last time Queensland received a GST exemption for such a project was in 2015, despite all other states and territories receiving exemptions for similar projects. But Mr Thompson said the State Labor Government had put 700 jobs in jeopardy at a critical time by rejecting the Federal Government’s $195 million funding for Stage 2 works.“The Federal Government has delivered its commitment of $195 million for this critical infrastructure project. It is unheard of that a State Government, 18 months down the track, would then backflip and refuse that funding," he said.“The stance of the Townsville Labor MPs makes absolutely no sense. They were happy for the Federal Government to put $75 million towards the Townsville Port channel widening, happy for the $100 million for the Townsville Stadium and happy for the $250 million for the Townsville Hospital – all without a make-believe GST stoush – why would this be any different?“We all know they are doing it so they can take credit for the project ahead of their own October election. I say to the Labor MPs in Townsville: the $195 million is signed, sealed and delivered and work should be all but underway instead of the costly delays we’re now seeing.” He described the GST figure being quoted as 'made-up', saying the Commonwealth Grants Commission - which calculates how much GST each State gets - had not even put out its report for this financial year.Mayor Jenny Hill said Mr Thompson had made a commitment on local radio today that the $195 million in Federal funding previously earmarked for the Haughton pipeline stage two would remain in Townsville. “I will write to Mr Thompson today to start the dialogue on how this funding could be spent,” Cr Hill said. “At a time when the Townsville community is hurting because of the COVID-19 global pandemic, this funding could provide a real shot in the arm to our recovery efforts. “However, we cannot afford to wait 12 months for this funding to materialise. The community needs it now.” Cr Hill said TaskforceNQ, of which Mr Thompson is a member, had already identified jobs-generating, shovel-ready projects that could be funded by the Federal Government. Townsville City Council expects the first tenders for the Stage 2 project, for design and professional services, to be advertised this weekend. Construction is expected to be completed during FY2023/24, subject to weather conditions.

State knocks back Federal cash for pipeline project

Industry Queensland

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