Port in a storm on funding

THE LNP has hit back at Labor’s calls for the Federal Government to contribute to funding for a $ 193 million channel widening project at the Port of Townsville.

The Federal Government says it has not been asked by the State Government to chip in funding for the Port of Townsville’s upcoming upgrade prior to public calls earlier this week for finance.

On Wednesday, Townsville MP Scott Stewart called on the Canberra to match a $ 75 million commitment to the project, due to start by April.

A Department of Infrastructure, Regional Development and Cities spokesman said under the Townsville City Deal, the Federal Government made commitments to work with the port and the Queensland Government to finalise the environmental assessment for the channel upgrade and to identify financing opportunities.

“Through the implementation of the Townsville City Deal, there have been a number of constructive discussions between officials in relation to these commitments,” he said.

“Prior to today, however, there had not been any formal request for funding and the business case for the port’s expansion had not been provided to the Commonwealth.

“Any request for funding will be considered along with other priority projects through usual processes.”

Queensland LNP deputy leader Tim Mander said the Northern Australia Infrastructure Facility had identified the project as a good candidate for one of their loans.

“This kind of thing is exactly what the fund is for,” Mr Mander said.

But Mr Stewart said a NAIF loan wouldn’t be suitable.

“When you see what the Federal Government does with the Snowy 2.0 scheme, they throw money at that thing,” he said.

“It seems to be one set of rules for the north and another for the south.”

Port of Townsville chief executive officer Ranee Crosby said she understood the State Government had written to the Federal Government seeking a grant.

“Discussions have been constructive and we will continue to work with both levels of government to finalise the balance of funding now that all environmental approvals are in place,” she said.

“The rationale for seeking $ 75 million matched funding as a grant from the Federal Government ... is reflective of the increased cost to the project created by the Federal and State government decisions to ban the placement of capital dredge material at sea.

“This decision directly increased the cost of the project from $ 43 million to $ 193 million.”