$100m highway slow lane
THE federal government is at least six months behind in its payments on the Coomera Connector, owing up to $100m and putting tradie jobs at risk, it can be revealed.
The Bulletin is told the payments relate to a “delivery deed”, which is a contract for actual work – separate to a “development deed” – for the $2bn road project between Nerang and Coomera.
Despite claims by the Commonwealth and State LNP MPS this week, the state government says the funding row is not about Labor being slow to progress the development part of the second M1.
Transport Minister Mark Bailey said the Palaszczuk government had been required to underwrite approximately $100m on behalf of the Commonwealth to extend the existing early works contract.
“Without this underwriting they would be unable to hire tradies and get supplies and materials for the work,” Mr Bailey said.
“Hence the project would be delayed. Work would have almost stopped completely.”
The Bulletin asked the Minister if this situation had occurred before and if it was due to lost paperwork by the Commonwealth.
“Not in my time as transport minister,” he replied. “Regardless of if it was an oversight, or intentional, the facts are it has threatened to delay the Coomera Connector project, which as everyone knows, is critical for the Gold Coast.”
Asked whether the state again asked the Commonwealth for payment, Mr Bailey added: “The Commonwealth are well aware of their obligations when it comes to signing off this approval.”
Mr Bailey took a political shot at federal Communications Minister Paul Fletcher and Bonney MP Sam O’connor.
Mr Fletcher this week said “any suggestion the Australian government is holding up this important project is simply not true, and a deliberate distraction from a Labor government that is notorious for suffering cost blowouts and mismanaging the delivery of infrastructure projects”.
“In November 2021, without any notice, the state government requested an additional $316.1m to cover a cost blowout on the Coomera Connector, on top of the Commonwealth’s existing and agreed $750m commitment to the project. The Commonwealth was quick to respond and provided the significant additional funding within a matter of weeks.”
In state parliament this week, Mr O’connor strongly rejected Mr Bailey’s accusations about the Morrison government refusing to release money for about six months.
Mr O’connor says the Minister and Queensland government are guilty of “blatant lies and misinformation” about the project.
But Mr Bailey said on Friday: “Paul Fletcher and Sam O’connor deliberately don’t mention the fact that there are two separate financial approvals – a development deed and a delivery deed. The funding approval from the Morrison government we sought over five months before the caretaker period, in November 2021, was the delivery deed, which they ignored.”