There’s a blockage in the pipeline
IT’S official — Townsville has a water supply pipeline going nowhere, with the Labor State Government refusing to sign a project agreement with the Federal Government, claiming to do so would be “dudding the people of North Queensland”.
The refusal comes as the Federal Government has stumped up the $195 million required, and signed the project agreement for stage two of the Haughton pipeline — but ignored Queensland’s demand for the project to be exempted from GST calculations.
Labor says without the exemption it will cost Queensland $156 million, while federal Townsville MP Phillip Thompson says this a “made-up” figure.
IT’S official. Townsville has a water supply pipeline going nowhere with the Labor State Government refusing to sign a project agreement with the Federal Coalition Government, claiming to do so would be “dudding the people of North Queensland”.
It comes as the Federal Government has stumped up the $195 million and signed the project agreement for stage two of the Haughton pipeline but ignored Queensland’s demand for the project to be exempted from GST calculations.
Labor says without the exemption it will cost Queensland $156 million, while Federal Coalition Townsville MP Phillip Thompson says this a “made up” figure but could be what the state thinks it will cost if all Federal Government projects in Queensland are included in GST calculations.
Stage one of the pipeline, running from near Ross River Dam to the Haughton irrigation channel, is nearly complete, while stage two is to extend to the Burdekin River at Clare, removing the need for pumps at the Haughton.
Stage one provided more than 900 jobs and another 700 are expected in stage two – if it ever proceeds.
On Saturday, Federal Infrastructure Minister Michael Mccormack called on Queensland to sign the project agreement so Townsville City Council could begin construction and deliver jobs and a boost to the region’s economy.
A spokeswoman for State Treasurer Cameron Dick said: “If Michael Mccormack wants to understand how to pay for pipelines, he doesn’t have to look too far from his electorate in southern NSW.
“The Federal Government gave NSW and Victoria $6.2 billion for the Snowy Hydro Scheme – that didn’t affect their GST take by a single dollar.
“Without the GST exemption for the Haughton pipeline stage two, Queensland will end up losing $156 million to Canberra. Yet again, it means Canberra is dudding the people of North Queensland.”
Townsville Labor MP Scott Stewart sided with his government, saying it amounted to the Federal Government taking the cost of the pipeline project out of the state’s GST allocation.
“It hasn’t happened for the Snowy River 2.0 – $5 billion, it hasn’t happened for the Melbourne Airport rail line – $5 billion; so if it’s not happening for those particular projects, why should we be punished?” he said.
Mr Dick’s spokeswoman provided a list of 18 projects the LNP had exempted from GST calculations in other states since 2015.
They included: Victoria for Royal Victorian Eye and Ear Hospital Redevelopment ($100 million); Victoria for Regional Rail Revival in Victoria ($1.4 billion); SA for Hospital Infrastructure Package ($189 million); SA for Remote Indigenous Housing (up to $37.5 million in 2018-19); WA for National Partnership on WA infrastructure payments ($1.21 billion); WA for remote housing ($121 million in 2018-19); WA for Perth Freight Link infrastructure funding ($1.2 billion); Tasmania for the Transfer of ownership of Mersey Community Hospital ($730.4 million); Tasmania for Queensland Fruit Fly Response ($20 million); NT for National Partnership on NT Remote Aboriginal Investment ($641 million); NT for the Kakadu roads upgrade ($70 million in 2019-20); NT for Remote Indigenous Housing ($110 million); and ACT for Clare Holland House ($4 million).
“The only reference in five years that mentions Queensland is the Fruit Fly Response – for Tasmania,” the spokeswoman said.
“If it’s good enough for other states and territories, Phillip Thompson should explain why Townsville and North Queensland don’t deserve their fair share.”