BLOCKED PIPELINE
JOBS, WATER SECURITY AT RISK
MORE than 1000 jobs and the city’s water security hang in the balance as local, State and federal politicians bicker over the way Queensland is treated for its GST allocations.
The State Labor Government wants stage two of the Haughton water supply pipelines exempted from GST calculations, saying it could cost Queensland $156 million if it is not.
So far, the Federal Government is ignoring them with its Townsville-based federal MP Phillip Thompson accusing the State of “playing politics”.
“Tell your mates in the Labor Party to get out of the way,” Mr Thompson said.
“They are playing politics with Townsville’s long-term water security.”
The issue has simmered for more than a year.
According to State sources, Queensland has not had a project “quarantined” since a Coalition State government was in power and is also asking for similar treatment to the Brisbane Metro project.
A spokeswoman from the office of Trea
surer Cameron Dick said the Federal Government had agreed to fund Stage 2 but it would not commit to exempting it from GST calculations, which could cost Queenslanders $156 million in GST shortfall.
“The Morrison Government must exempt this Project Agreement from GST calculations, as it has done in the past for all other states and territories,” the spokeswoman said.
“Despite repeated requests to the Federal Treasurer to confirm this job-creating project would be exempt from GST, we have heard nothing from the Morrison Government.
“The ball is in their court to get this project up and running, and create hundreds of jobs for North Queensland.”
Mr Frydenberg’s office directed questions to Deputy Prime Minister and Infrastructure Minister Michael Mccormack, whose office said they had nothing to add.
Mr Thompson said the State was “not correct” with its GST assessment.
He said there had been no GST exemption for the stadium and the State was only asking now because they were heading into an election.
“I am not going to rest. I’ve just got off the phone to the Treasurer. We have the money budgeted in our budget. It’s not some extra project we are going to find money for.
“The State is using this as a political football,” Mr Thompson said.
“They will sign off and allow this to go ahead when it’s served the purpose (of) electioneering. (But) I’d like to see it done before this.”
Mayor Jenny Hill said Mr Thompson had not delivered $195 million he promised some 18 months ago.
“This project would give Townsville the water security it needs to grow and prosper for the next 50 years and would provide around 1000 jobs over the next three years,” Cr Hill said.
“One thousand jobs building the second stage of the Haughton pipeline would provide a tremendous boost for our local community and its economy.”
The $200 million Haughton Pipeline Stage 1 is nearing completion and runs from the back of the Ross River Dam to the Haughton Channel. Stage 2 extends it 36.5km to the Burdekin River at Clare.