Make the pipeline flow State urged to ‘put pen to paper’ and start work on Stage 2
THE Federal Government has provided the final project agreement for Stage 2 of Townsville’s Haughton Pipeline to the State Government for signing, so work can begin.
The move ups the ante in a stoush with the state which is demanding the Federal Government exempt the project from GST calculations, saying it could cost Queenslanders $156 million in GST shortfall.
The Federal Government has committed $195 million to fund the water supply project, but it is understood the shortfall arises because the federal money could be counted as state revenue, reducing its GST allocation.
That the pipeline is an income producing asset could also be a factor in any GST assessment by the Commonwealth Grants Commission.
Deputy Prime Minister and Regional Development Minister Michael Mccormack said the Federal Government had agreed to the scope of the project.
“For funding to flow on this critical water infrastructure project, the Queensland Government must now sign the agreement so Townsville City Council can begin construction and deliver jobs and a boost to the region’s economy,” Mr Mccormack said.
“Our nation is reeling from the ongoing effects of COVID-19. These are tough times for all of us. The Australian Government ment understands supporting jobs and local economies by getting shovels in the ground and boots in mud on significant infrastructure projects makes a world of difference.
“Stage 2 will create more than 690 new jobs over its three-year construction, along with a further 30 new full-time ongoing positions – which is great news for the community and local economy as it begins to bounce back from COVID-19.”
Federal Member for Herbert Phillip Thompson said it was time for the State Government to do the right thing and sign the agreement.
“The ball is now firmly in the Queensland Government’s court. This is Federal Government m money for the people of
Townsville, for the council to build a pipeline to secure our city’s water security – the state needs to do its bit and get out of the way,” Mr Thompson said.
“As well as securing the city’s long-term water supply,
Stage 2 will be vital for providing jobs, enhancing business opportunities and supporting the economy at this critical time.
“It’s time for the Queensland Government to stop playing political games and put pen to paper so works can get under way as soon as possible.”
Townsville-based Senator for Queensland Susan McDonald said the project was about delivering the secure and reliable water supply the region needed and deserved to thrive into the future.
Federal Member for Dawson George Christensen said the project would also deliver a much-needed boost to the region’s agricultural sector.
“Delivering the Stage 2 pipeline means the (Haughton) channel would not be needed for urban supply and can be made available to irrigators, supporting $3 million in additional agricultural output in the region each and every year,” Mr Christensen said.
“By underpinning the growth of our important agriculture sector, this project will be backing our hardworking farmers and their families while driving the region’s future prosperity.”
The Federal Government said it was committing more than $380 million to Townsville through the Townsville City Deal, a 15-year agreement signed in 2016 to transform the city’s economy and central business district of which the Haughton pipeline Stage 2 is part.