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.”