Thompson lifts lid on Townsville pipeline blowout

Information from whistleblowers shows the expected cost of Townsville's Haughton Pipeline Stage 2 project has blown out to more than $420 million, according to Herbert MP Phillip Thompson. Mr Thompson released the details in a speech to Federal Parliament this morning, saying the supplied documentation confirmed the blowout was due to delays as a result of political games from Labor. In addition to showing a 133 per cent rise in project costs, from an initial budget of $179.6 million to more than $420 million, Mr Thompson said the information pointed to a completion blowout of more than four years. BMD is leading the construction work, which will see 28km of pipeline installed to extend the existing Stage 1 pipeline from the Haughton River to the Burdekin River near Clare. The Townsville City Council said today it had been working with a specialist consultant to conduct an in-depth review of the project, specifically focusing on how to reduce the forecast cost to complete. A council spokeswoman said it became apparent early last year that the Stage 2 project was set to exceed the approved budget of $274 million, with $195 million to come from the State Government and $79 million from the council. (This came after an earlier announcement on an expected increase from $195 million to $274 million). "The review has identified savings that could be made should a further delay to the completion date be accepted," she said. "The current forecast cost to complete the project is $420 million should no aforementioned savings be adopted." The council was unable to contribute further additional funds above the $79 million allocated and was engaging with the State 'to consider options for low-cost, secure water supply', she said. The council cites construction cost increases following the COVID pandemic as the largest factor in the blow-out. But Mr Thompson said savings were missed because of the Labor-led council and State Labor Government’s refusal to accept federal funding. “One of the key commitments I made before being elected to this House was $200 million in funding for the Haughton Pipeline Stage 2,” he said. “That funding was contingent on a business case - something that was publicly ridiculed by then Mayor Jenny Hill, her Labor Team Hill councillors, the three Townsville based State Labor MPs and the Labor State Government. “Building Stage 2 immediately after Stage 1 was supposed to save tens of millions of dollars. “Unfortunately, Labor Mayor Jenny Hill and the State Labor Government decided to politick and refused to accept the Federal funding – based on a lie about the funding’s potential effect on Queensland’s GST allocation. “They had a bells and whistles press conference to announce they’d fund the project without the Federal funds. “12 months later it was announced that disastrous decision had led to lengthy delays and a $79 million cost blowout – to be footed by Townsville ratepayers. “The key reason for this disgrace is identified as the refusal from Team Labor to accept the Federal funding when it was offered."

Thompson lifts lid on Townsville pipeline blowout

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