Pipeline a political football

THE Haughton Pipeline has become a political football as Townsville state and federal MPS argue about who is to blame for delays in stage two funding.

Yesterday, federal MPS Phillip Thompson and George Christensen reaffirmed their commitment to the project after Infrastructure Australia’s new analysis of the business case found stage two of the pipeline was not worth pursuing at this point.

Now Townsville MP Scott Stewart and Thuringowa MP Aaron Harper have called on the Federal Government to get its act together and release the money.

But Herbert MP Mr Thompson said the State Government’s request to waive the GST payment was the reason for delay.

Mr Harper said the State Government funded stage one, which was near completion, and it was time to get on with stage two.

Mr Stewart said the federal politicians needed to “listen to the people of Townsville” and give the local businesses the chance to work again on the project.

“If they are serious about the jobs, get it started now,” he said.

But Mr Thompson said the project was delayed due to the GST blue, which has been ongoing for months.

When the Federal Government pays for projects, the State Government must pass on the money, but with that comes a GST payment.

State Natural Resources Minister Anthony Lynham claimed the Federal Government would not remove $195 million from its GST calculations, which would mean the State Government would foot the bill for a federal project.

A Federal Government spokeswoman said GST negotiations were close to concluding, but still ongoing.

The spokeswoman said the Australian Government was “negotiating productively and in good faith”.

Mr Thompson said every project that the Federal Government had helped fund in the past had GST attached and this was no different.