Infrastructure Funding for Queensland

[#Metro]

Can I have a list of the major PT projects and their expected cost.

I know CRR should be around $10 BN as a reasonable figure. (Reference: Melbourne Metro is $11 BN).

[ozbob]

Couriermail --> Turnbull Government should co-fund rail tunnel in return for power sector reform

[colinw]

The double standard in this country about project costs has even crept into these forums.  We constantly see posts here saying such-and-such is an unaffordable mega-project, and yet the country manages to fund many such road mega-projects each decade without any problem. 

The costs per km of rail & road are a simple reality of our high standard of living, wages, safety regime, smallish population and relative isolation.  They are not going to change, and will only inflate with the mega infrastructure builds going on in places like the UAE.

I find it very very funny the way we constantly say rail projects are unaffordable mega-projects, and yet even a cursory examination of the various state budgets and federal budget shows that the equivalent to a couple of CRRs or Melbourne Metros are spent on roads year-in, year-out.  Just in QLD we have an annual infrastructure CapEx of ~$9 billion with a road component of $3 billion year-in, year-out, compared to which current rail expenditure is a pittance, G:Link stage 2 is small change.

The problem in this country is NOT unaffordable projects.  It is one of priorities.  As shown quite handily by NSW getting on with NWRL, SWRL, light rail, etc.

[ozbob]

Expenditures on roads since the 1960s has been simply massive compared to rail & other transport. We cannot afford to not redress this imbalance... It costs to neglect public transport

[SurfRail]

Can I have a list of the major PT projects and their expected cost.

I know CRR should be around $10 BN as a reasonable figure. (Reference: Melbourne Metro is $11 BN).

I don't think $10bn is anywhere near the actual cost.

The revised scope CRR ended up being cheaper than BaT before it was cancelled (less than $4.4bn), and including Trouts Rd connections and all the surface approach works it wasn't greatly more expensive ($6.4bn).

Construction costs are also slowing or in fact cheapening due to a number of major resources projects transitioning from the build phase to the production/export phase.  Fewer works being done, fewer people employed doing them.  As a consequence of this a lot of expertise is also going to be relocating out of the State, which is going to be oh so helpful when we get our sh%t together and decide to build something.

There would be costs associated with re-resuming properties which the LNP sold off, or with redesigning the southern approach so this was not necessary, but it is hardly going to double the cost of the project.

[Stillwater]

One of the more interesting facts in the National Press Club address by Dr di Natoli, leader of the Greens today was that one third of all coal mining jobs in Australia have been lost in the past 18 months.  End of the MBRL project will mean the specialised skills set and equipment required to build railways will be moving on to the 'next big thing' which will probably be in Victoria and NSW.  It will be hard to get them back north, as SurfRail puts it, when we finally get our sh%t together in this state.  And, let's face it ... that will require the allocation of some rail/PT expenditure in the 2016-17 Queensland state budget.

That money is not going to come from the feds 'cos we haven't got any business cases with them in the form that IA requires them to be submitted.

And we can't wait until Infrastructure Queensland is formed and then get to work, because it will start producing its 'pipeline of project' from the latter half of 2016, meaning projects funded and proceeding in 2017-18.  Queensland can't wait that long for meaningful investment in major rail and PT infrastructure.

What can Queensland Government afford on its own -- GCLR, longer crossing loops on North Coast Line?  There must be something affordable the state can commit to.

[ozbob]

How about a new water bubbler at Cooroy? 

What colour?  This seems about the limit ... 

[#Metro]

I find it very very funny the way we constantly say rail projects are unaffordable mega-projects, and yet even a cursory examination of the various state budgets and federal budget shows that the equivalent to a couple of CRRs or Melbourne Metros are spent on roads year-in, year-out.  Just in QLD we have an annual infrastructure CapEx of ~$9 billion with a road component of $3 billion year-in, year-out, compared to which current rail expenditure is a pittance, G:Link stage 2 is small change.

Examples?

[SurfRail]

http://www.railexpress.com.au/briggs-defends-policy-pivot/

Article seems to suggest what I expected, which is that CRR and MM are not directly comparable in terms of cost - see Jamie Briggs' comments.

If anything I'm surprised they are still looking at that price-tag for CRR, although in reality he could just be referring to the headline cost for BaT.  There certainly isn't a ready business case for CRR at present, and the last one was (apart from there only being 3 tracks at Salisbury for some reason) largely ideal in terms of fixing the capacity constraints from Albion to Salisbury as opposed to one focusing on the core, most expensive bits.

[Stillwater]

Interesting development ....

Today's Australian newspaper reports on a visit by the Deputy Prime Minister and Infrastructure Minister, Warren Truss, to Waurn Ponds, Victoria, where the locals are seeking to have the Geelong-Waurn Ponds railway line duplicated.

Here is the relevant paragraph contained in the story:

Mr Truss said the business case and engineering work for the Geelong (rail) plan needed to be done and would need to be nationally significant, although with the dual objective of increasing freight traffic, it might meet that test.

The Geelong-Waurn Ponds rail duplication project replicates exactly the situation on the SCL, where the single track serves urban passenger rail, long distance passenger rail and freight rail.  The difference is that Waurn Ponds is in the marginal seat of Corangamite; no marginal seats on the Sunny Coast (with possible exception of Fairfax).

It should be emphasised that SCL also serves Mr Truss' electorate of Wide Bay.

Let's hope the business case for the SCL prepared by the state government goes beyond the SHOW US THE MONEY demand to a sensible and well-argued business case that rivals that of the Victorian Government's Geelong-Waurn Ponds documentation such that the Queensland case is superior and, therefore, more deserving of federal government money.

[colinw]

I find it very very funny the way we constantly say rail projects are unaffordable mega-projects, and yet even a cursory examination of the various state budgets and federal budget shows that the equivalent to a couple of CRRs or Melbourne Metros are spent on roads year-in, year-out.  Just in QLD we have an annual infrastructure CapEx of ~$9 billion with a road component of $3 billion year-in, year-out, compared to which current rail expenditure is a pittance, G:Link stage 2 is small change.

Examples?

Go read the budget papers! (I trust you have).

QLD budget 2014/15: transport spend $5.4 billion of which rail component was:
- $374 million on Kippa-Ring line.
- $25.4 million on NGR (mainly Wulkuraka Depot works)
- $28.7 million Lawnton - Petrie triplication and the new North Pine River bridge
- Gold Coast Light Rail not reported against budget 2014, as funding for completion was from 13/14 financial year.

2015 budget the total transport CapEx spend is lower, about $3.9 billion, with only significant rail component being:
- $136.8 million on Kippa-Ring line
- $78.1 milliion on NGR.
For comparison, Cooroy-Curra Bruce Highway: $400M, Townsville Ring Road, $200M.

Other states not materially different; Victoria spiked higher when RRL was under construction, NSW is on the way up due to NWRL & the inner city Light Rail.

Overall picture across all states is Rail / Public transport spend running below 10% of total transport spend, with rest going on roads.  Federal urban rail spend is on way down to almost nil as MBRL, Gold Coast Light Rail, Adelaide Electrification, etc., wind up.  Sadly the Adelaide Job remains unfinished (Gawler Line delayed as TA yanked the funding mid project and SA DTEI had to scrounge just to finish the already started Tonsley Spur electrification & part duplication - yes our wonderful Federal Government actually withdrew funding from a project already underway!)

I maintain my previous position - the "its too big / unaffordable" mantra only gets trotted out for rail projects, has invaded our thinking even on this board, and yet the road mega-spend continues unabated, unremarked and unchallenged.  Just go through the QLD Transport & Main Roads budget papers for last few years and tote up all the $100M to $400M projects, let alone the biggies like 2nd Gateway Bridge & approach works, then compare to the amount spent per year on the likes of Petrie to Kippa-Ring or NGR.

We appear to be in the position of begging for scraps, then being thankful for the rare juicy morsel that does get thrown our way.

The reality is even if a $5billion+ CRR tunnel seems huge, if the spending is split over multiple years it will come nowhere near even 30% of the road spend in the same period. (e.g. $5 billion project over 6 years - $833 million per year out of annual transport CapEx running between $3 and $5 billion).

[colinw]

Interesting development ....

Today's Australian newspaper reports on a visit by the Deputy Prime Minister and Infrastructure Minister, Warren Truss, to Waurn Ponds, Victoria, where the locals are seeking to have the Geelong-Waurn Ponds railway line duplicated.

Hmm, that's not going to come cheap given the tunnel under the Geelong between Geelong & South Geelong.  If it does go ahead, hopefully it includes clearances for eventual electrification.

[ozbob]

Couriermail --> Opinion: Cost of not selling state's assets is in the mail

[Stillwater]

The pressure is on the state government to spell out a Queensland Infrastructure Plan that is not just a lot of nice words and pictures, but concrete measures to tackle the state's needs.  Top of the priorities is a way of funding infrastructure.  This has been wanting in previous plans, making each of them a 'statement of intent', never fulfilled.

http://www.dilgp.qld.gov.au/resources/paper/delivering-infrastructure-plan-for-qld-directions-paper.pdf

Jackie Trad is every bit as tricky as her predecessor in playing the politics around infrastructure provision.  Like TransLink, Infrastructure Queensland will be on a tight political leash.

And 'infrastructure' in the eyes of this government includes schools, hospitals, dams and water pipelines etc.  So there are lots of competing priorities chasing a dwindling bucket of money.

Maybe we should be switching emphasis slightly to call for a 'Queensland Infrastructure Funding Plan'.  The state government must 'man up' about funding transport infrastructure.

[ozbob]

Couriermail --> Common sense must guide political vision and funding on public infrastructure

[ozbob]

Twitter

David Marler ‏@Qldaah 19m

Qld infrastructure projects.(Newman Govt 2012-13 to 2013-14. All else Beattie-Bligh). #qldpol

https://www.treasury.qld.gov.au/publications-resources/review-of-state-finances/review-of-state-finances.pdf ...

[red dragin]

I thought NGR was kicking around as an idea pre "CanRroadTunnel", but was only put into action during his time?

[petey3801]

I thought NGR was kicking around as an idea pre "CanRroadTunnel", but was only put into action during his time?

Correct, it was already in the pipeline before he came to power, he just continued it along (although it was originally for 100x6car units).

[ozbob]

Sunshine Coast Daily --> Funding bid to combat congestion on major roads

SUNSHINE Coast Council is determined to put the brakes on the worsening road congestion between the Sunshine Coast, Brisbane and the Gold Coast with a push for State Government help.

The Federal Government's Australian Infrastructure Audit April report has indicated congestion levels and delay costs associated with road corridors in the Brisbane, Gold Coast and Sunshine Coast regions are projected to worsen significantly to 2031.

The report found Queensland would experience the second highest population and employment growth behind Western Australia.

Brisbane City Council will put forward a motion at the Local Government Association of Queensland's annual conference to address the situation.

The motion will ask the LGAQ to lobby the government to ensure increased public transport use and infrastructure funding are considered in developing the State Infrastructure Plan.

A Sunshine Coast Council spokesperson said the council would support the proposal at the Toowoomba gathering between October 19-21.

"Council supports measures prioritising investment in public transport infrastructure in high-growth communities that can increase the use of public transport to encourage a shift away from the high use of private vehicles," the spokesperson said.

The cost of the delay on the Brisbane, Gold Coast and Sunshine Coast urban transport network in 2011 was about $2 billion.

That figure is expected to blow out to $9 billion in 2031.

Brisbane council argues demand for public transport will increase almost 90% by 2031 and one in six Australians already travel to work on public transport.

The infrastructure plan is due by the end of the year and will provide an approach to prioritising funding and delivery in Queensland.

The LGAQ lobbied the government in June to consider priorities across all public infrastructure.

[ozbob]

Brisbanetimes --> Queensland looks to Sydney for infrastructure funding ideas

[ozbob]

Couriermail --> Qld Govt infrastructure plans falling $40 billion short by 2020, report says

QUEENSLAND is staring down the barrel of a $40 billion "shortfall" in infrastructure by 2020 and the loss of as many as 20,000 jobs, a new report warns.

A Civil Contractors Federation-commissioned report reveals the state faces an enormous infrastructure backlog, with construction sector jobs poised to vanish.

It suggests that State Government forecasts "provide a depressing picture in terms of investment in infrastructure" ...

[ozbob]

http://statements.qld.gov.au/Statement/2015/11/10/deputy-premier-to-showcase-queensland-to-key-international-regions

Media Statements
Deputy Premier, Minister for Transport, Minister for Infrastructure, Local Government and Planning and Minister for Trade
The Honourable Jackie Trad
Tuesday, November 10, 2015

Deputy Premier to showcase Queensland to key international regions

The Deputy Premier and Minister for Trade Jackie Trad will head to Indonesia, Singapore and India next week to promote Queensland's expertise in vocational education and training, urban planning and design, transport systems and knowledge industries.

"The Palaszczuk Government is about generating jobs and economic growth for Queensland and there's no better way to do this than to showcase our trade and investment credentials in key overseas markets," Ms Trad said.

"In Jakarta, I will be part of the inaugural Indonesia Australia Business Week (IABW) this will be the largest promotional initiative in Indonesia and my involvement signifies the importance Queensland places on further strengthening business partnerships with Indonesia.

"Joining me on the trip to Jakarta will be more than 70 delegates from Queensland, the third-largest business delegation out of 320 Australian delegates.

"During this trade mission, I will be participating in the IABW's infrastructure program, which is focussing on urban sustainability and transport connectivity. In Singapore, I will be strengthening Queensland's cultural relationships, as well as promoting Queensland as an attractive investment destination.

"While attending the North Queensland Economic Summit held in Cairns recently, it was evident to me there is a real interest in businesses wanting to invest in Queensland as well as local businesses keen to export their high quality products internationally.

"As part of my trade mission, I will then lead more than 10 Queensland companies to India – one of Queensland's most important trading partners – to discuss opportunities arising from India's remarkable economic growth and increasing prosperity.

"This mission further highlights the Palaszczuk Government's commitment to promoting Queensland's world-leading expertise in these and other industry sectors, to the rest of the world.

"Trade means jobs, and the Palaszczuk Government will continue to support Queensland businesses to grow and export to the world-because our state boasts great products, bright ideas, talented people and a trusted operating environment, and we are committed to showcasing this to deliver more jobs for Queenslanders," Ms Trad said.

The date of the Deputy Premier's Trade Mission is from 17 to 27 November 2015 

[ozbob]

^

Guess this means the policy paralysis just got even worse ...

[Stillwater]

^^^
Looks like Ms Trad is trying too hard to justify an overseas junket.  Before she ha stepped on the plan, she is working on the answer to the inevitable question in Parliament - "Can the Honourable Minister tell the house how her recent overseas trip at taxpayers expense actually benefitted the taxpayers of Queensland."

Answer: "The Palaszczuk Government is about generating jobs and economic growth for Queensland and there's no better way to do this than to showcase our trade and investment credentials in key overseas markets.  In Jakarta, I was part of the inaugural Indonesia Australia Business Week (IABW), the largest promotional initiative in Indonesia, and my involvement signified the importance Queensland places on further strengthening business partnerships with Indonesia.
"As part of my trade mission, I will then lead more than 10 Queensland companies to India – one of Queensland's most important trading partners – to discuss opportunities arising from India's remarkable economic growth and increasing prosperity.

"Trade means jobs, and the Palaszczuk Government will continue to support Queensland businesses to grow and export to the world-because our state boasts great products, bright ideas, talented people and a trusted operating environment, and we are committed to showcasing this to deliver more jobs for Queenslanders."

Stand by for the question, and the answer.

[#Metro]

Well the government is really hanging by a string in Parliament, just upset one thing and the whole boat will sink. Isn't it frustrating?

Not sure which other parliaments do better? Perhaps Tas, WA, ACT, NT??

Main issues are (a) QLD can't properly raise own revenue, and (b) can't really follow any plans as the next election is always coming soon.

Changes need to happen to those two things before we can get some movement.

[SurfRail]

Hare-Clark type systems tend to produce parliaments more aligned with the actual proportions of voters, but the history of Tasmanian politics and the current ACT parliament haven't produced the best outcomes either.

For funding reform, I'd like to investigate the following:

Federally - make superannuation concessions slightly less generous, increase the Medicare levy, and put the GST up to 15%.  ?Use some of the additional funding to implement an Infrastructure Australia governed equivalent of the CEFC with a decent budget and with as little political interference as possible so they can fund things that work.

State/Territory level - abolish all transaction duties, payroll taxes and existing land tax regimes, reinstate death duties/inheritance taxes and levy a State land tax on all properties in the same manner as rates (to be collected and remitted by local government in the same manner as the fire levies and other charges).  That should cause a nice bump in productivity by getting rid of inefficient taxes which discourage investment (payroll tax especially) and those more prone to the economic climate (duties especially), but lessening the widening gap between rich and poor.

[#Metro]

Ok, so where on planet earth is there 'competent government'. Is there an example?

[SurfRail]

Wherever cities and regional/national governments have separated infrastructure planning and delivery from the political arm of government as far as possible.  Planning for a proper public transport system should really be no more obtrusive or contentious than planning the sewer or electrical distribution network.

[Stillwater]

A dollop of my super money is tied up in shares in the Evolution Road Maintenance Group, which contracts services to TMR and other clients.

Today, I received the annual report of the company, which revealed that I and other shareholders would not be receiving dividends this year.  The company made money, but put this into acquisitions and a finance restructure.

Quote from the report:

"Political volatility, particularly with regards to the change in government in Queensland, and the increased costs associated with expansion into other states and countries were primary contributors to the lower than budgeted result.  ERMG will continue to consider potential liquidity options, however remain concerned and frustrated with the extent of political volatility and government in Australia at both Federal and State levels."

Politics around Transport in Queensland is hitting my hip pocket!  Where is the Queensland Infrastructure Plan folks?

[ozbob]

Sent to all outlets:

20th November 2015

Queensland - The Banana State?

Greetings,

The unstable political cycle and inability to raise stable funding have real costs. We find support for this view.

ERMG, an ASX-listed company has said in a report:

"Political volatility, particularly with regards to the change in government in Queensland, and the increased costs associated with expansion into other states and countries were primary contributors to the lower than budgeted result.  ERMG will continue to consider potential liquidity options, however remain concerned and frustrated with the extent of political volatility and government in Australia at both Federal and State levels." (emphasis added)

We have previously called for four-year electoral terms, consideration of proportional representation in the Queensland Parliament and stable funding (such as from land tax reforms) to provide certainty for both Government direction and the private sector.

Funding and political instability ruin projects. The textbook example is Cross River Rail - after seven years of animations, reports, alignment optimisation, studies, media releases, and talking, no concrete end-product has been produced.

How can the Queensland Government credibly commit to following its upcoming State Infrastructure Plan (SIP) if it cannot raise its own revenue to pay for projects, or political instability means that the SIP is at risk of being scrapped by another incoming administration?

The over-reliance on Australian Government funding means that the Australian Government appears to have more control over what gets built in Queensland than the Queensland Government. In the long term, this situation is likely to worsen as much of the state's income comes from coal and worldwide there is a movement to phase out coal for energy generation.

Major reforms both in the Queensland Parliament and in the way Queensland raises revenue need to be pushed through to secure funding and political certainty for projects such as Cross River Rail before Queensland becomes a failed banana state.

Best wishes,

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

Reference:

Fixed four-year terms good for infrastructure
http://railbotforum.org/mbs/index.php?topic=10217.msg161433#msg161433

[verbatim9]

Qld's economy slows to recession levels Lowest growth of .5% in the country. Improvements?  Infrastructure spend on rail and busway extensions? Time for Asset recycling? Borrow more cash at lowest ever recorded rates?
Super funds to invest public transport infrastructure (Can they make a return e.g partial portion of fares from a built Cross river rail being returned to super funds for every train that goes through the tunnel?

[verbatim9]

Queensland Governemt has given the highest subsidies to the mining industry out of any other state.  A staggering 9.6Billion!  That could easily pay for Cross River Rail and other vital projects around the state. http://www.tai.org.au/content/mining-age-entitlement

[Stillwater]

Perhaps even more than an Infrastructure Plan (which is desperately needed), Queensland needs a way to fund billions of dollars in infrastructure.  Not doing anything incurs a cost.  It's called congestion and it costs industry a lot of money.  Australia's competitiveness is affected.

The Queensland Government won't sell assets, it is against raising the GST (which all goes to the states).  It has no ideas of its own and seems to want the feds to charge in on a white horse to save it when it comes to financing major infrastructure projects, if ever we get the planning right (CRR )

Screaming 'show us the money' every so often in the direction of Canberra, or hoping that states will get a dedicated share of income tax etc. are no so much plans as wishful thinking.  Meanwhile things get pushed back and back ( a la new generation ticketing.)

[ozbob]

<--- the ' plan ' ...

[ozbob]

And it continues ...

============

Couriermail --> Mayors to lobby for $15b worth of projects

SOUTHEAST Queensland mayors will head to Canberra next week with a $15 billion roads and rail wish list.

The Melbourne to Brisbane inland rail project is expected to top the list of infrastructure projects for which the Council of Mayors SEQ delegation will be lobbying the Federal Government.

It will also include stage three of the Gold Coast light rail, only a month after Prime Minister Malcolm Turnbull backed funding for stage two ...

More > http://www.couriermail.com.au/news/queensland/mayors-to-lobby-for-15b-worth-of-projects/story-fntuy59x-1227620278357

[ozbob]

The cargo cult approach ...

[ozbob]

Meanwhile ...

Rail Express --> AustralianSuper wants in on PPP market

AusRAIL: The head of infrastructure for $92 billion fund AustralianSuper says he wants to get involved in the public private partnerships (PPP) market.

Jason Peasley spoke at AusRAIL on Tuesday, November 24, as part of a forum on establishing and growing an infrastructure projet pipeline in Australian rail.

"AustralianSuper has recently approved its annual infrastructure portfolio strategy," Peasley explained.

"As part of that strategy, we have developed an initiative whereby we will be entering the public private partnership market as both a debt and equity partner, effectively as a lead sponsor.

"This isn't something that institutional investors have done previously.

"It takes a lot of people, it takes a lot of resources , and capital to take those projects to market, and the [Australian] superannuation system is only now getting to a level of maturity where [it can] engage directly in the development of infrastructure."

Peasley said the decision was influenced by the growing size of AustralianSuper, and increased confidence in the long-term stability of the infrastructure project landscape.

"Within AustralianSuper, we've got to a size now where we can ... develop a platform that will allow us to participate in that market," he said.

"A second important reason is what we've heard today around the development of agencies, the advocacy for pipelines, the advocacy for transparent cost-benefit analysis.

"It's momentum that we believe is starting to overcome the short-term political cycles, and allowing the long-term planning and delivery of infrastructure to endure.

"That's giving us the confidence ... to become a sponsor in this marketplace, to bring our balance sheet, and to play our part in delivering infrastructure."

[ozbob]

FYI

==================

Twitter

ABC News Sydney ‏@abcnewsSydney 1h

#BREAKING TransGrid is leased to an Australian led consortium -NSW Electricity Networks, for over $10 billion

[SurfRail]

https://sourceable.net/should-australia-embrace-tax-increment-financing/

[verbatim9]

Coag this week! Will Annastacia and Curtis Pitt be open to bonus payments to pay for vital infrastructure in place for partially detegulating retail hours allow liquor sales in all supermarkets for a fair playing field red tape in DA's etc.... As suggested by Treasury and Scott Morrison (Harper review). A more open free flowing economy means more money for Qld