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'Just not sustainable': infrastructure review finds billions in cost pressures

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A Sunshine Coast federal MP has called for the state government to “grow a backbone and stand up for the people of Queensland”, as multiple federal infrastructure projects face the axe in a bid to ease inflation.

LNP Member for Fisher Andrew Wallace is urging federal Infrastructure Minister Catherine King, who is leading an independent review of the infrastructure investment program, to keep the commitment to a Sunshine Coast rail line to Maroochydore, calling the project “essential”.

“This is about delivering on one of the highest priorities for one of the country’s fastest-growing regions,” he said.

The independent review has found $33 billion of cost pressures to the economy, with that figure tipped to grow even further.

Ms King said the investment pipeline, which had increased from 150 to 800 projects under the previous government, had not been managed well.

However, she did not say how many infrastructure projects would be cut.

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“It is simply just not sustainable for the pipeline to continue the way that it is after a decade of being used for political purposes,” she told ABC radio on Monday.

“There’s been evidence that this infrastructure pipeline has not been managed and not been managed well, and obviously, that is also causing inflation pressures.”

It comes after federal Treasurer Jim Chalmers told the ABC’s Insiders program on Sunday that infrastructure investment needed to be done “in a more measured and coordinated way”.

“We’re going to need to make some difficult decisions about the infrastructure pipeline, which factors in those $33b of blowouts from projects announced by our predecessors, and which factors in our inflation challenge,” he said.

“I do think we need to be upfront about that and the work that Catherine is doing, engaging with the states, is to work out how we get maximum value for money, how we get the right infrastructure for our people and for their economy, without putting additional upward pressure on inflation.

“That is the motivation for this infrastructure review that we will make public before long.”

Mr Wallace said he wanted to see action on the Sunshine Coast heavy rail project.

“It’s time to stop Labor’s delays and smokescreens and just get on with the job,” he said.

Andrew Wallace in Parliament House.

“This job could have already started when the former federal Coalition Government offered the state $1.6b for the project in early 2022. But because of the state government’s delays, this project is now at grave risk because of Prime Minister (Anthony) Albanese.

“Sunshine Coast Rail will fundamentally change the way we move people in southeast Queensland – busting congestion on our busiest roads and reducing the use of cars and thereby carbon emissions.”

Labor’s Jason Hunt, the state Member for Caloundra, said it was “the usual don’t do as I do, do as I say response from the LNP” on Sunshine Coast infrastructure.

“The state MPs recently held a group press conference holding signs demanding action on passenger rail,” he said. “The cost of the six corflute signs they were holding is almost the largest amount of actual money that the state LNP has spent on the passenger rail project, including from 2012 to 2015 when every one of them was a Cabinet minister in government.

“Their federal counterparts are in much the same boat – when they are not advocating for nuclear reactors they are talking about a commitment of money for passenger rail in a budget they didn’t pass.

“The business case for the passenger rail project has yet to be handed down and I am fully supportive of the project and have written to the Minister for Transport and Main Roads to advocate for the project.”

State Member for Nicklin Rob Skelton, also from Labor, said he had been actively engaged in advocating for the region’s transport needs.

“I’m always talking to Minster Mark Bailey on the state level and I’ve been in discussions with advisors to the Federal Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King MP, to ensure that our region’s priorities are considered at the federal level,” he said.

Ms King announced a 90-day review of the pipeline in May in a bid to make the program more sustainable.

The infrastructure pipeline was estimated to be worth more than $120b.

Projects that had been announced in the budget or had already started construction were not impacted by the review.

State Member for Kawana and deputy Opposition leader Jarrod Bleijie also criticised the infrastructure review, saying “it’s been 181 days since the proposed 90-day review was announced”.

“There are more than $14 billion worth of infrastructure projects on Labor’s chopping block and it’s Queenslanders who are set to pay the price for Labor’s failures,” he said.

Australian Constructors Association chief executive Jon Davies said critical infrastructure projects could not afford to be cut due to migration numbers.

“With over 500,000 migrants predicted to enter the country this year, we cannot afford to cut back on building schools, hospitals and transport infrastructure,” he said.

“We could afford to build everything we need, without any significant inflationary impact, if we focus on improving the construction industry’s productivity.”

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