NEWSFLASH: CRR DELAY ANNOUNCED!!!

[ozbob]

Fair enough.  If the Government is doing this in good faith then we should see the planning process continue, at least.

Yes, and I have received advice that is to happen and the EIS is to go ahead.

Very cool avatar too by the way ..   

[colinw]

Good.  I shall quit my whining then.  Needed to get it off my chest.

[mufreight]

Another example of the incompetence and short-sightedness of Madam Bligh and her Toy Boy Treasurer.
The Cross River Rail project is needed now if Brisbane and South East Queensland are not to strangle and grind to a halt.
Post 74 the government managed to commence major infrastructure projects to ensure the ongoing growth of this state the only difference now is the incompetence and duplicity of Premier Bligh and her government and their retinue of incompetent party hacks employed as advisers.
Last week there were going to be no infrastructure cuts, then some road projects are to be cut and now a cornerstone public transport project is to be deffered, most likely never to see the light of day again under LABOR, but then the Premier also said that her government would run full term so based upon the track record of the Queensland Blight's veracity we can expect an election to be called in the comming weeks as she and her incompetents come to the reality of the enormity of what needs to be done to rebuild this state and their inability to do what is required.

[colinw]

Very cool avatar too by the way ..   

Thanks.  Its EMU 01 at Ferny Grove on "E" day in 1979.  A candidate for preservation by QR Heritage one day I hope.

I always preferred the EMUs with their original front ends and the blue QR, but then I like my diesels in white & blue QR livery as well.

[ozbob]

Joint Statement:

Premier and Minister for the Arts
The Honourable Anna Bligh

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
28/01/2011

Flood reconstruction effort funded by Abbot Point lease

The proceeds from the already planned long-term lease of the Abbot Point Coal Terminal, expected to exceed $1.5 billion, will directly fund Queensland's share of the flood reconstruction effort.

Handing down the Mid-Year Fiscal and Economic Review today, Premier Anna Bligh and Treasurer Andrew Fraser unveiled the state's preliminary damage bill from the floods, and the Queensland Government's response.

The flood recovery funding package includes a boost for the tourism sector, the prioritisation of funding for damaged sports facilities and a funding injection for the Jobs Assist program.

"We have just faced the greatest natural disaster to ever hit this state, and with that comes enormous economic and financial cost," the Premier said.

"The floods have swamped our state and left their mark on an economy still feeling the effects of the global financial crisis."

The Premier said the task of rebuilding would take years.

"This is by no means the final bill - experience tells us many communities will be counting the costs for some time to come.

"What we have released today is a preliminary estimate of the total damage bill, matched by a flood recovery funding package that is aimed at getting Queensland back on its feet."

"Many councils were still processing claims from the 2009 floods just before Christmas."

Mr Fraser said it made sense to use the proceeds from the lease of APCT, which was first announced in June 2009, to fund the operations of the Queensland Reconstruction Authority.

"Once that transaction is completed we can immediately direct those funds to the reconstruction effort.

"We have also made several policy decisions to ensure all necessary resources are dedicated to the recovery and reconstruction effort.

"We will provide an updated analysis in the June State Budget as the true extent of the damage caused is tallied."

The MYFER includes a series of decisions to ensure that rebuilding Queensland would be the Bligh Government's number one priority:

    * The Queensland Reconstruction Authority will be funded from the proceeds of the long-term lease of the Abbot Point Coal Terminal, which could exceed $1.5 billion.
    * The Commonwealth's initial allocation of $2 billion would also be directed to the Reconstruction Authority
    * Plans for a Brisbane Cross-River Rail Project to commence construction in 2013 would be delayed by at least two years
    * A new voluntary separation program for non-frontline public servants would generate $175 million in savings by 2012-13
    * Councils would be given a $400 million advance on their estimated damages bill of $2 billion.

It's expected that the total damage bill will exceed $5 billion. That figure includes an estimated $2.5 billion state road and transport infrastructure costs, a further $500 million in state owned buildings such as schools, teacher housing and other state assets and $2 billion in funds required to be provided to local governments.

Under the long-standing Natural Disaster Recovery and Relief Arrangements (NDRRA) between the States and the Commonwealth, the federal government will be responsible for meeting up to 75% of these costs.

Mr Fraser said there were a number of costs not covered by the existing natural disaster relief agreement, including the costs of repairing ports, railways, airports and community owned sporting facilities.

The State also announced new programs to assist in the recovery and rebuilding effort.

"We know some sectors are doing it extremely tough.

"The pictures of a flood-ravaged state have travelled around the world, and potentially stemmed the flow of tourists into Queensland. We need to spread the word that Queensland is well and truly open for business."

The measures include:

    * A new $5 million allocation to Tourism Queensland, matched by the Commonwealth, to fund a new $10 million marketing program
    * A $3 million boost to the JobsAssist program aimed at helping firms in trouble - with money redirected from existing investment incentive funds now unlikely to be expended this year.
    * $ 24.5 million in reprioritised funds from the existing Sport budget to provide grants of up to $60,000 for sporting groups to rebuild.

The result of the slowdown in the economy and the costs of rebuilding would deliver a revised Budget deficit of $3.9 billion next financial year, compared to the $1.44 billion forecast in last year's state budget.

Mr Fraser said the state debt would be around $9.9 billion lower than the Budget.

"Our reform program has assisted us in coping with the disaster - there's no two ways about it."

Mr Fraser said today's Fiscal and Economic Statement reflected the need to prioritise.

"Our priority needs to be rebuilding Queensland, and that means putting some projects on the backburner in the short-term.

"Cross-river rail has a cost of some $7.7 billion and was our number one priority submitted to Infrastructure Australia, with the project needing a 75% contribution from the federal government.

"The reality is that funds are not going to be available to commence on the original timetable."

"This year's Budget would have incorporated funding to commence work - that will now have to wait.

Mr Fraser said 3500 non-frontline public servants would be able to access the new voluntary separation program, saving up to $175 million per year by 2012-13.

"Each year we need more police, more teachers, more ambulance officers, more firies, more child-protection workers, doctors, nurses and allied health professionals. Now more than ever, Queenslanders will need these frontline staff.

"This program is all about ensuring our resources are where they are needed most. We will consult with public sector unions and I make the commitment that it will not result in a single forced redundancy."

Mr Fraser said the government remained committed to achieving a surplus by 2015-16.

The MYFER is available online at treasury.qld.gov.au.

[ozbob]

"Cross-river rail has a cost of some $7.7 billion and was our number one priority submitted to Infrastructure Australia, with the project needing a 75% contribution from the federal government.

"The reality is that funds are not going to be available to commence on the original timetable."

"This year's Budget would have incorporated funding to commence work - that will now have to wait.

[Stillwater]

Ozbob:  Do your informed sources say that the CRR business case will continue to progress?  I assume the financing will have to be recalculated to take into account increased costs due to construction delays.

Hey Mufreight, do you still believe I am a 'spin doctor for the toy boy Treasurer' for suggesting there would be a flood levy and a delay to CRR?   

[ozbob]

Yes, understand work up is to continue.

Re MBRL, GCRT and Springfield

A statement the Premier made today at her press conference:

"Other than the cross-river rail project, we have been able to hang onto our building program" which is also reported here:
http://www.brisbanetimes.com.au/queensland/underground-rail-buried-20110

This means that the three rail projects are to continue as planned.

[colinw]

Yes, understand work up is to continue.

I hope something is done to bring some certainty to the Yeerongpilly & other residents potentially affected by resumptions.  The delay could leave them in limbo.

[ozbob]

Joint Statement:

Premier and Minister for the Arts
The Honourable Anna Bligh

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
28/01/2011

TRANSCRIPT - PRESS CONFERENCE - 11:00AM FRIDAY 28 JAN

E & O E - PROOF ONLY

TRANSCRIPT

JOINT PRESS CONFERENCE

11AM FRIDAY

28 JANUARY 2011

RE: MID-YEAR BUDGET REVIEW; CROSS RIVER RAIL; CYCLONES; COUGAR ENERGY

PREMIER ANNA BLIGH: January 2011 has seen catastrophic flooding across three quarters of Queensland. That means we now face a massive reconstruction task. The early estimates of the cost of that task, of just rebuilding what we have lost, is around $5 billion.

Every family that's been affected by this flood are now rethinking their budget, their family budget for this year and the Queensland State Government has had to exactly the same thing.

Yesterday we saw a Federal funding package that provided us with some certainty and confidence about the Federal Government's contribution to our reconstruction effort. I'm very pleased to say that we are in a position, at the state level, to provide an initial allocation of $1.5 billion to the Queensland Reconstruction Authority to add the Commonwealth's $2 billion. So a budget of three and a half billion dollars as a starting point for the Reconstruction Authority. That $1.5 billion constitutes more than our 25 per cent share of the rebuilding task. There's money there for other issues beyond the normal disaster arrangements. These funds will be funded from the proceeds of the sale of the lease of the Abbot Point Coal Terminal. This was always part of our economic strategy, it's currently on the market and rather than use these funds, as planned, to pay off debt, they will be now directed to the Reconstruction Authority to fund disaster recovery, which for Queensland now has to our number one priority.

Further, this decision means that we can continue with the bulk of our building program. We will need to put one major project on the backburner for now, because we are simply not in a position to put it into this year's budget, and that will be the Cross-River Rail project. So we will see the Cross-River Rail project put on the backburner for around two years. Clearly that will be a decision that's reviewed in subsequent budgets, depending on how the economy is recovering. But we need to say, right now, that cannot be a priority.

Putting this project here in Brisbane on hold for two years means that we have been able to proceed with major projects across the regions, as planned, that are important to those regional economies. So in Cairns we will see the Cultural Centre proceed; in Townsville, the cruise terminal and the port redevelopment proceed. The major hospital rebuilding programs in Cairns, Townsville, Mackay, Rockhampton, Sunshine Coast and the Gold Coast; all proceeding. And the Gold Coast Rapid Transit project proceeding as normal. So other than the Cross River Rail project we have been able, despite the devastating hit that we've taken to our economy and our budget, to hang on to our building program because that's important for local jobs and it's important for the future of a growing state.

We'll also be having to scale back on public sector spending and this will mean a new voluntary redundancy program that public servants who are not essential front-line staff will be able to access. This has been the subject of preliminary discussions with unions and we anticipate that there will be a number of people, given the aging profile of our workforce across a number of areas in the public sector, that is an area that we will be able to see some significant recurrent savings in.

So all in all, this is a package that sets a very solid financial foundation for the new Reconstruction Authority; a $3.5 billion budget between State and Commonwealth funds to get on with the job of rebuilding Queensland. It's a package that's been put together with no new taxes or increases in state taxes or charges. We know that people are going to be doing it tough and we won't be hitting them on any of those areas. It also means no cuts to our existing building projects. That is important for the long-term strength of our economy and it's particularly important in some of our regional economies that we keep going full steam ahead with those projects. As we rebuild Queensland and reconstruct what we've lost, we don't want to see the economy slow down in other parts of the state which haven't been flood-affected. So the big projects in Cairns, Townsville, Gold Coast, Sunshine Coast and other parts of regional Queensland all going ahead. A package that underpins a solid foundation to take us into 2011 and 2012, where we can rebuild a stronger Queensland. I'll invite the Treasurer to give us some more details.

TREASURER ANDREW FRASER: Thanks Premier. This is a down payment on flood recovery. The infrastructure cost for the state of Queensland from flood recovery will be on $5 billion. Around half of that will be from transport and the road network in particular. Around $2 billion will be the cost that local councils assume in repairing their own assets and around $500 million. The balance, being other public assets, including schools and other public buildings right around the state. The Commonwealth share of that bill is just under $4 billion, and you saw the Prime Minister yesterday allocate $3.9 billion in their own budget towards the Queensland recovery effort and they've provided an advanced payment of $2 billion towards that. When $2 billion is a deposit you get a sense of the size of the task here.

As I've said many times, the hit to the budget won't just be from the rebuilding of infrastructure, it will also be in the damage to the economy and in lost revenue. The floods do in fact come on top of other hits; $1 billion razored off GST in the allocation at the end of last year and of course we'll see an impact on the mining sector with royalties expected to be down by nearly $300 million this year alone before price recovery.

Our economic recovery was building before the floods hit. We climbed back to 2.3 per cent growth last financial year. That was in line with the national growth rate. We were looking to have a figure of around 3 per cent forecast for this financial year, the current financial year we're in. But the floods will now swamp that with growth expected to now be one and a quarter of a per cent. So while we count the cost of lost production now, there was already a lot of investment locked in to the Queensland economy, in particular those big LNG projects which will inject massive investment spend that was ready to rip into the Queensland economy and provide support and demand as those projects ramped up. So the stimulus effort of the rebuilding effort will also now contribute towards the end of the year and that means we need to get ready for the economic rollercoaster. We will dip and then we will soar. Our growth rate for next year will in fact be revised upwards, as all that ac tivity combines together. This is going to be a wild economic ride.

Of course we're also going to see unemployment be a particular challenge at the start of the year, but then the demand for skills will likely see a tidal wave in the market toward to the end of the year. As the Premier indicated, we have had to put a priority on flood repair work and on front-line work and that means that the Cross River Rail project will not start as planned. Shortly before Christmas we submitted to Infrastructure Australia a proposal for a project for the cost of $7.7 billion, requiring a 75 per cent contribution from the Commonwealth. Clearly that's not about to happen. The government has been working on plans for the project to commence construction in 2013. That would have required this year's budget to provide the allocation of funding to allow that to commence and we're not going to be in a position to do that. So while the project needs to take place to relieve congestion on the rail network into the future, it does need to wait at this point in ti me because of the circumstances we find ourselves in. Brisbane will have to wait a bit longer for its next tunnel.

Also the Voluntary Separation program, which the Premier mentioned, will ensure that while we need more police, doctors, teachers and nurses each and every year, there is an opportunity for those people who have been a part of the restructure of government, to voluntarily leave. There will be not one forced redundancy from this program but it does provide an opportunity, in consultation with unions, for those people who may have delayed their retirement because of the impact on superannuation from the GFC to access this arrangement. That means that we can put all our resources to the frontline to meet the needs of a growing population.

Today we make a start but there's a long road ahead.

PREMIER: Can I add, in relation to Cross River Rail, while we will not be in a position this year's budget to allocate funds for construction, we will continue to stand in the market, we will continue to acquire the corridor. We know that there will be hardship cases, people wanting to put their homes on the market and there will be sufficient funds, we believe, for those people who voluntarily want to make that move to do so. We won't be doing compulsory resumptions but there are people who want to get on with their lives and the corridor will continue to be acquired because this is a project that will go ahead.

JOURNALIST: Do you anticipate the $5 billion bill to go any higher?

PREMIER: It's important to understand that the $5 billion estimate is just that, an early estimate. I do expect that we may see the bill rise higher than that. We are still seeing, in some parts of Queensland, the waters have yet to recede. Parts of St George, Dirranbandi; the highway down there has still got water on it. Until we get quotes in there on our rail lines and some of the big infrastructure, the best we can do is an estimate and that's what $5 billion is. We think it's a sound estimate but we don't claim that it's precise and I would expect to see that the final bill will be higher than that.

JOURNALIST: (Inaudible)

PREMIER: It is important to remember, as we begin the reconstruction task here and count the cost of it, that our wet season is not over. We have significant weather events forecast for next week, which could add to the damage bill.

JOURNALIST: With the Cross River Rail (inaudible) and how will you deal with that (inaudible)

TREASURER: It's important to remember that ultimately because there is one rail crossing this is a project that's needed in the end and there does become a point where congestion will increase on the rail network. But the Cross River Rail was going to facilitate that and reduce average travel times by 7 minutes and the fact is we're all going to have to wait a little bit longer. It doesn't mean that the rail network won't continue to operate but it does mean that there's a congestion point. Obviously we'll need to build the project into the future but it's simply not possible at this point.

JOURNALIST: When are you now anticipating Queensland will get back its AAA credit rating?

TREASURER: I've always said that this was a 5 to 10 year task and clearly at the end of last year ratings agencies were making public statements that that could be achieved sooner. Obviously this puts us back. This won't help us get the AAA credit rating back any sooner but the priority here has to be on funding flood recovery, not regaining the AAA credit rating at this point.

JOURNALIST: So realistically when do you think that may be feasible?

TREASURER: I think it would still stick to my original timetable.

JOURNALIST: Treasurer, there's a massive drop in property taxes, was that on the cards before the floods?

TREASURER: There was a drop in property taxes that we were going to factor in because of softness in the property market, because of constrained credit conditions. That's been compounded by the floods, so that obviously delivers the hit that you see factored into. But it's important to understand that obviously the turnover, which is what generates property taxes in Queensland, will be constrained by flood recovery.

JOURNALIST: Where do you think the voluntary redundancies will come from?

TREASURER: It'll be open across the public sector to non-frontline staff. So the Public Sector Commission has a classification of people who work on the frontline and those who don't. It will be open to those public servants in essentially the core public service who want to exit, to do so.

JOURNALIST: Given the drop in royalties, are you tempted to put up the rate of royalties?

TREASURER: No, we've got very clear guidelines that we've put in place on those royalty arrangements. What we'll need, what will happen though is, you'll see, and you've already seen it, the price in the spot market move up as market forces take place. So we have absolutely no intention of revisiting the royalty rate, full stop.

JOURNALIST: What's the revenue impact of shifting royalty collecting from a quarterly to a monthly basis?

TREASURER: It's proposed to do that from next financial year, which will align with the system that's proposed for the new Commonwealth taxation arrangements. So there would be a small cash flow in moving to a monthly saving - but I can get you a figure. But, in terms of royalties, Paul, it would be point zero-something.

JOURNALIST: Are you going to be recording them more often or is it the plan to do it twice a year?

TREASURER: We would do it twice a year. Presently its quarterly payments in arrears.

JOURNALIST: (inaudible)

TREASURER: In the submission that went to Infrastructure Australia it was forecast at 2018. So obviously that timetable would be back by two years. That doesn't mean that the network stops. That means that obviously into the future you need extra capacity.

JOURNALIST: (inaudible) extra services (inaudible)

PREMIER: One of the tasks that the Department of Transport has now been tasked with is whether there is any feasibility with timetabling to relieve some of the pressure in those years on a forecast basis. But yes - it will mean some inconvenience to Brisbane travellers in sometime between 2016 and 2018. We believe that is a small price to pay to ensure that the regional economy of Queensland, so central to the prosperity of everybody, gets back on its feet.

Of course we'll review the decision. If we see income increase at a faster rate than we currently forecast, we may be able to revisit it. But, we can't recover as quickly as possible from a devastating, catastrophic disaster like this without having to take some hard decisions. As I said, every family that's been affected by this flood right now is looking at the family budget, and they may not be able to buy the new car that they had planned to buy this year. They may not be taking the family holiday that they'd be planning for five years. What they will have to do is rebuild their homes and, just as they're rebuilding their homes, we have a state rebuild and that means we have to put some things further back than we would have liked them. It's not coming at the best possible time but we will still get it.

JOURNALIST: (inaudible) the most important thing on your books is the first thing that you chop?

PREMIER: It's called a catastrophic devastating disaster. What we've seen in January.

JOURNALIST: (inaudible) why does this one get chopped first?

PREMIER: Because this is the major project that would have had to be funded in this budget and this budget has to be about rebuilding and reconstructing.

JOURNALIST: (inaudible) to change the GST funding structure, given the big drop last year?

TREASURER: I beg your pardon?

JOURNALIST: (inaudible) GST funding arrangements, will you try and (inaudible)

TREASURER: I always do that. It's part of my PD I suppose, Roseanne, but, and I had a pretty good win last year and it's a good thing that we did because that helped overcome some of the other changes. But, obviously we want to make sure always that the GST arrangements provide the best assistance to Queensland and that will be something that we continue to pursue.

JOURNALIST: How much will you save by deferring Cross River Rail?

TREASURER: Well the project had a figure of $7.7 billion, which we would have to had to begin putting into the budget this year, as I explained.

JOURNALIST: How much will you have saved by deferring by two years? How much were you forecast to spend in the next budget?

TREASURER: No, to understand we were going to put the numbers in to build it in this budget. We're now not going to do that.

JOURNALIST: Yeah but how many millions would that involve? How many millions would you have to had set aside in this budget?

TREASURER: I can get you the figure; that would have been over the next three years of the budget estimates. But that's, on that balance, three quarters of 7.7 billion.

JOURNALIST: Given the drop in revenue for Abbott Point, do you still expect to get that 1.5 billion?

TREASURER: Let's be, let's be clear about what the effect of the weather event has been on Abbot Point Coal Terminal, which is 40 minutes north of Bowen. The Newland system has been operating throughout this period of time. Abbot Point Coal Terminal have been operating at full tilt. So it's been not affected substantially by the floods. So yes, we certainly do believe and not only that, when you're looking at a 99 year investment, you don't make a decision about what happened last week. You take a view about what's going to happen for the next 100 years.

JOURNALIST: (inaudible) you're basically saying we need 1.5 (inaudible)

PREMIER: We've always indicated that we thought that was our minimum. That was something we identified as the value of this asset when we identified the sales program. So I don't think we're telling potential buyers anything that we didn't already have in the public arena.

TREASURER: But let me, can I just add to that point also, which is, the transaction is well progressed and I'm confident, as this point, that the person who purchases Abbot Point Coal Terminal might have to pay above that.

JOURNALIST: And what are you going to do with the extra money above 1.5?

TREASURER: We'll make that decision then.

JOURNALIST: Three quarters of the 7.7 billion is that always what you expected to pay for that Cross River Rail? You just said that you, over the next three years.

PREMIER: No, it's a project that was always going to require Federal government assistance, which is why we submitted it as our number one priority to Infrastructure Australia.

JOURNALIST: (inaudible)

PREMIER: .Three quarters of the state's share. Remembering that we are still in the final stages of the feasibility project, so we're not in a position to give you precision around how it would have been cash-flowed. But we know that we could not have meet, met the target date without this budget, starting to factor in for '11/'12 and particularly '12/'13.

JOURNALIST: So in response to a question about how much was in the Budget for the Cross River Rail, the Treasurer just said three quarters of 7.7 billion.

TREASURER: No, the answer Patrick is zero. We were going to put the money into this year's budget - we now can't.

JOURNALIST: Yes and the question was how much, what was the figure you were going to put?

PREMIER: And the difficulty in answering that is we have yet to put together this year's budget, and we've yet to get the final feasibility. But we know that it's a big price-tag, we know that we would have had to have put in significant funds and how that was cash-flowed would have been a decision in this year's budget process.

JOURNALIST: But what I'm trying to clarify is, the Treasurer just said three quarters of 7.7 billion. What's that figure relate to?

TREASURER: Well there would have been three years of construction in the budget.

JOURNALIST: So are we saying then is at least a billion would have been set aside in this year's Budget.

TREASURER: It would have been upward of that but the fact is we're not going to do that because we aren't in the position to fund that construction project.

JOURNALIST: (inaudible) how much you would save by not putting it in the Budget?

TREASURER: Well we're going to save, at this point, $7.7 billion because we're not going to allocate it.

JOURNALIST: But you were saying you wanted three quarters of that to come from the Feds didn't you?

TREASURER: Correct.

JOURNALIST: But you have to allocate it and then they reimburse you, so to speak, down the track?

TREASURER: Well it's become a theoretical argument because the Federal government's not in a position to provide their contribution.

JOURNALIST: Why not?

TREASURER: Well they've indicated.

JOURNALIST: (inaudible)

TREASURER: They've indicated.

JOURNALIST: (inaudible)

TREASURER: They've indicated pretty clearly that they're not in a position to do that right now.

JOURNALIST: (inaudible)

TREASURER: Certainly my discussions with the Commonwealth indicate that they're not in a position to do that right now.

JOURNALIST: Is that before or after the floods?

TREASURER: That's been since the flood.

JOURNALIST: Premier, Kristina Keneally, has she spoken to you about getting Sydney families who are struggling with the cost of living some sort of concession to pay less of the flood levy?

PREMIER: I'm not aware of those comments.

JOURNALIST: Do you think that's fair, Sydney-siders who are struggling should have to pay less?

PREMIER: I would hope that all Australians understand how important it is to get Queensland fully back on its feet as quickly as possible. And, as I said yesterday, I know that nobody likes to pay more but nobody who's been affected by this flood wanted this disaster to come through their house either. What matters to Australians everywhere is that Queensland cattle get back to market and get back at a reasonable price because we've rebuilt the roads and rail. What matters is that tropical fruit and other produce gets to the southern markets at a reasonable price, not driving up the grocery bill. So every Australian benefits the quicker we can get our agricultural and mining sectors operational and our roads and tourism sectors up and running.

JOURNALIST: So you don't think anyone should be exempt from it?

PREMIER: Low-income earners are exempt and that's.

JOURNALIST: Apart from the people who have been announced as exempt?

PREMIER: Well I was, from the very beginning of this discussion I said I thought it was important that any levy did not hurt those people who are battlers, those people on low incomes. And I think where it's been struck is fair enough.

JOURNALIST: (inaudible)

PREMIER: Clearly much of the public infrastructure that has to be rebuilt is currently owned by both state and local governments. I might just explain that normally in a much smaller scale disaster councils do the work and then submit invoices and are reimbursed and sometimes that can take 12 months or two years through the processes of all different levels of government. What this $400 million does is directly give councils in the same way as the state has got this from the Commonwealth, an advance payment so they can get on with the job. Particularly with smaller councils who would have a tougher job carrying that sort of cost over a 12 month or longer period. In terms of allocating that it will be done on the basis of those councils that have the biggest ask and the ability to pay. We'll be working with every one of them. They will all get the money that they need ultimately but those who have a bigger issue around the size of their budget and their cash flow wil l be the ones we'd be seeking to give the up-front assistance to.

JOURNALIST: (inaudible)

PREMIER: Through the Reconstruction Authority, yes.

JOURNALIST: Treasurer what's happening with state debt? Is it basically, from all the asset sales, its allowed you to wipe $7 billion of the total state debt so it's now what 78, 79 billion?

TREASURER: If you look at what's going on this year you can see that in the budgeted figure for this year it was around $62 billion, it's now around $52 billion because of those proceeds and the position that we're in. Obviously the deficit expands in order to fund the reconstruction effort over the next couple of years which contributes to the final position.

JOURNALIST: Can you give me the starting figure for this year's Budget (inaudible)

TREASURER: The deficit for the 2011-12 budget will be around $3.9 billion because of the cost of flood recovery.

JOURNALIST: What's that figure?

TREASURER: $3.9 billion.

PREMIER: That's for next financial year.

JOURNALIST: Will the Reconstruction Authority have enough money to rebuild things to a better standard, flood proofing or just cover the rebuild?

TREASURER: As we said earlier the share of $5 billion is $1.25 billion. We're providing an allocation of $1.5 billion which obviously gives room for them to make decisions about those things which they might rebuild to a different standard.

PREMIER: But under the national disaster guidelines and requirements there is express provision for what's called betterment, that is that you might rebuild a bridge but build it higher so that next time it will not be washed out by floodwaters. So there is provision under the disaster guidelines for that. What is not included and which we will also be looking at after the rebuilding are the other bigger issues about flood mitigation such as levies or dams.

JOURNALIST: Have you got any special provisions in place for the cyclones that are forecast to come across the coast?

PREMIER: I'll be making a statement about that later this afternoon. I've spoken this morning to the Bureau of Meteorology who advise me that they hope to be in a better position this afternoon for some precision about what we can expect from the tropical cyclones that are forming off our coast. But I do need to say that I think that this is a potentially very serious situation and we will be putting in place arrangements to make sure that we're ready for anything that might occur next week.

JOURNALIST: How are you going to meet the funds to fix the payroll system?

TREASURER: That's an allocation that's made in the document as you can see and obviously those funds are provided for in this budget.

JOURNALIST: (inaudible)

TREASURER: As the document details the savings will come primarily from the Separation Program so obviously the cost for health payroll is in extra people to operate the system and as it's detailed in the document that's obviously going to be funded through the program of separations.

JOURNALIST: Treasurer, a few weeks ago you said the cost of last year's floods was still washing through the Budget. How much of that is yet to wash through?

TREASURER: We had about $1.4 billion in last year and this year in terms of the floods at the point that we did the budget last year. There's around $2 billion of existing NDRA expenditure, natural disaster expenditure that's contained in this budget apart from the $5 billion that has been allocated now because of the floods this year. So the answer to your question in short is $2 billion plus five today.

JOURNALIST: (inaudible) Cougar Energy trial has stopped (inaudible)

PREMIER: The trial of Underground Coal Gasification by Cougar Energy in the southwest of Queensland has been ceased by the Department of Environment and Protection Agency. Obviously we were absolutely committed to only letting this trial continue if we were satisfied it could meet all of the environmental standards after a very comprehensive review. It's clear that it can't do that and it will not proceed. I know there's been some speculation about the announcement today. Can I say we gave a commitment to the company that they would be given certainty by today and it's the mid-year review that's actually changed because of flooding. Ok?

TREASURER: Thanks.

JOURNALIST: Can I just ask the future of that industry (inaudible)

PREMIER: Well we've put a moratorium on any further applications for that sort of process. We did that as I recall Cathy, and I'm happy to confirm it, about two years ago. We said we would let those that currently had approval, and there were three of them go to trial but we would put a moratorium on any further approvals til we was the outcomes of the trials. This particular company will not be allowed to proceed but there are the other two trials. We won't make a decision on that technology until we see the outcome of those trials but we certainly won't be lifting the moratorium until we've seen the outcome.

JOURNALIST: In terms of the savings from the Cross River Rail, you have some numbers that you can get back to us with?

TREASURER: Sure.

JOURNALIST: With voluntary redundancies, if they're to raise $175 million and health payroll costs $209 million.

TREASURER: Each year Daniel.

JOURNALIST: Ok, so.

TREASURER: So in two years you'd get $350m. There's your answer.

JOURNALIST: So the bulk of the redundancies (inaudible) payroll.

TREASURER: It will fund that. But then you get that saving each and every year, it's not a one off. You get it every year into the future.

JOURNALIST: Premier when does the money start to flow to the Reconstruction Authority, you're saying now that the review is done, the money starts flowing?

PREMIER: Yes, well, the Reconstruction Authority doesn't become a legal entity until it's passed by the Parliament but we would expect that it'll be established within four to five weeks and it'll be established with this budget.

JOURNALIST: The $400 million for local governments that goes mid-year does it?

PREMIER: I'll be talking with Mayors about how we can get those funds to them as quickly as possible. But the funds from the Commonwealth will come to Queensland in this financial year, that is before the end of June and our $1.5 billion will go into the Authority as well.

JOURNALIST: You'll seek to fast track the Authority in the first sitting of Parliament?

PREMIER: That's what I'm hoping to do and I would hope that we will see bipartisan support for that. Clearly some of the very big projects that both state and local governments have, getting the money is one thing, getting contractors, getting labour and getting the projects started and starting to include the cost is another. So for some of these projects the bulk of their cost will fall in the first part of the next financial year.

JOURNALIST: So some of these councils, they can start.

PREMIER: Absolutely. Absolutely and that's what we want them to do.

TREASURER: We've already given the go ahead to do that.

JOURNALIST: Just before you go, later today on the cyclone thing, what time will that be?

PREMIER: We'll give you some advice. As is said I've spoken to the Bureau; they're hoping to give you something a bit more detailed and I would hope to be making a statement early afternoon. Ok.

ENDS

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

[ozbob]

Yes, understand work up is to continue.

I hope something is done to bring some certainty to the Yeerongpilly & other residents potentially affected by resumptions.  The delay could leave them in limbo.

PREMIER: Can I add, in relation to Cross River Rail, while we will not be in a position this year's budget to allocate funds for construction, we will continue to stand in the market, we will continue to acquire the corridor. We know that there will be hardship cases, people wanting to put their homes on the market and there will be sufficient funds, we believe, for those people who voluntarily want to make that move to do so. We won't be doing compulsory resumptions but there are people who want to get on with their lives and the corridor will continue to be acquired because this is a project that will go ahead.

[ozbob]

28th January 2011

Position Statement - Cross River Rail delayed

RAIL Back On Track members are disappointed that the Cross River Rail (CRR) project is to be delayed due to the financial costs of the flood recovery efforts. We understand the need for prioritising recovery projects and welcome the committment to maintaining other major infrastructure building projects.

We particularly welcome the committment to other rail projects such as Springfield Railway, Moreton Bay Rail Link and the Gold Coast Rapid Transit.

The timeline now for completion of CRR is at the earliest 2020.  This means that a re-think of how the public transport network is operated, all modes,  to extract the maximum benefit for the community is needed.  It is also means that we need to think laterally and consider how more passengers can be moved in a timely and safe fashion as roads increasingly fail due to congestion and mayhem.

RAIL Back On Track members are already actively considering how we can maximise the utility of systems we presently have.  We will be putting forward these constructive suggestions in the near future.

Contact:

Robert Dow
Administration
admin@backontrack.org


RAIL Back On Track (http://backontrack.org) is a web based community support group for rail and public transport and an advocate for public transport commuters.

[SteelPan]

What an absolute and untruthful SHAMBLES. 

Within days - NO Hours - of the floods, we've had govt ministers and boffins running around wanting to kill (sorry "defer") the CRR program for reasons only a politican and a Qld bureaucrat could dream up.  A program still some years away from serious expenditure - it doesn't even in accounting terms make sense!

How does deferring a program, not yet fully committed to and to be in part, funded by the Commonwealth and not due to need large scale funding for some years, actually help with the flood rebuild?

Please list for me the major ROAD programs that the govt announced today would be deferred due to flood rebuild expenditure?

If the members of this site, who claim to support rail, accept this FAIRYTALE - then there's a Bridge and an Opera House in Sydney going cheap at the moment - send me your 15% deposit! 

An absolute used-car salesmen effort and a another uniquely Qld SHAMBLES!

[#Metro]

The timeline now for completion of CRR is at the earliest 2020.  This means that a re-think of how the public transport network is operated, all modes,  to extract the maximum benefit for the community is needed.  It is also means that we need to think laterally and consider how more passengers can be moved in a timely and safe fashion as roads increasingly fail due to congestion and mayhem.

2020 :-( Very disappointing, the bridge will be at capacity then.

[#Metro]

Ramp up the Core Frequent Network, yep, Core Frequent Network is cheap enough to survive this IMHO AND it might even save money in the process too!

[Jonno]

The are multiple road cancellations.

See --> http://railbotforum.org/mbs/index.php?topic=5234.msg46151#msg46151

and significant projects in other states delayed as well ...

Talk about a token effort.  Where are the really big projects.  Can't touch those they are a vital part of our economy.  It is a double standard.  Public transport is the poor cousin.  Nothing has changed. PT is just a social service that is first to be cut!!!!

[SteelPan]

The are multiple road cancellations.

See --> http://railbotforum.org/mbs/index.php?topic=5234.msg46151#msg46151

and significant projects in other states delayed as well ...

Talk about a token effort.  Where are the really big projects.  Can't touch those they are a vital part of our economy.  It is a double standard.  Public transport is the poor cousin.  Nothing has changed. PT is just a social service that is first to be cut!!!!

Bloody shameful - those road funding cuts are bugga all - why is rail via the CRR being singled out??? We should be livid at this...

[Golliwog]

We are in trouble transport wise without significant and sustained rail frequency increases.  The radial bus routes cannot do much more, rail still can.

There now must be a focus on some cross suburban bus routes, starting with GCL to a 7 day frequent operation.  Enough of the nonsense, time to pull the transport finger out.

Bus lanes are needed in the obvious places.  There is little chance of that happening though with the politics of BCC.  Can the state government direct BCC to re-instate bus lanes?  Don't know.

I think all would agree with increases in the cross suburban bus routes. As for bus lanes, my understanding of hte legislation is that yes the state government can force bus lanes to be put in, however have not used this power as they try to work with the local government/s instead of forcing things.

[ozbob]

--> http://au.news.yahoo.com/video/queensland/watch/23995181/

[ozbob]

yes the state government can force bus lanes to be put in, however have not used this power as they try to work with the local government/s instead of forcing things.

Might be time to change that ... 

[#Metro]

You can just imagine the bunfight that will happen.
Politics gets in the way. But on the other hand WE NEED CAPACITY NOW!!!

[#Metro]

BrizCommuter  
http://brizcommuter.blogspot.com/2011/01/plan-b.html

1) Improved signalling (enhancements to existing system, distance to go overlay, or transmission based train control) - this could allow for an increase in services on existing tracks, and possible allow the rail network to get by until CRR eventually opens. However it would require option 2), and of course require the Government to spend quite a bit of money!

Maybe. How much and how quickly can this be rolled out?

2) Improved infrastructure to allow efficient train scheduling - the current network constraints make efficient timetabling difficult, which can result in uneven loadings, and reduce network reliability. Projects such as grade seperating Park Road junction, and electrifying the 4th track between Corinda and Darra, plus various duplication/quadruplication projects would allow for more efficient scheduling, but would again require considerable Government spending.

What about bringing that 4th platform back up to useable standard. Would that help anything? What are the benefits of 4th track Corinda to Darra electrification?
Duplication may be costly but maybe not so costly that it is impossible. What are the costs per km for track duplication and electrification? AIUI they are much lower than
construction from scratch.

3) Scrap the 20 minute standing overcrowding definition and un-express some expresses - trains such as the Gold Coast trains are only slightly more than half full when crossing the Merivale Bridge. This is a waste of track capacity. These, and other express services with spare capacity should be unexpressed nearer to the CBD to pick up extra passengers. This has already been planned for Sunshine Coast services in the 2011 draft timetable, which didn't amuse Sunshine Coast commuters.

I don't think the overcrowding statistic can be scrapped. Indeed, they look like they have modified it so that GC services are not overcrowded under the definition, so it is a bit of a smiley statistic IMHO.

4) Redesign train interiors with more standing space.

Yes, this could work. I support this idea for short run services.

5) Improve bus services along rail corridors - improving bus services that provide an alternative to train travel from some stations could take some pressure of overcrowded rail services e.g. utilising route 88, making the 390 a Buz service. Buses are a very cost effective type of public transport, but unfortunately 1 train = 20 buses. More bus lanes would definitely be required, and lack of SE Busway capacity is a potential major issue.

The problem is that there really isn't much of an alternative here. Buses run on roads, which have the lowest level of priority and lowest reliability when they are needed most- peak hour. The SE busway is very close to capacity IMHO, and not much has been done since the recommendations of the 2007 Mass Transit Report to increase capacity on it. In fact, I remember from the Courier Mail that the rail option was because you would need a totally astronomical number of buses to do the job of rail, and this would block the CBD with buses and would require huge amounts of kerb space and bus stations. THIS IS A RECIPE FOR DISASTER

Brisbane will need another six King George Square bus stations within 16 years to cope with booming population growth unless funding for the city's second cross-river rail tunnel is found, the project chief has warned.

Cross-River Rail Project director Luke Franzmann told a Business Development Association lunch yesterday the southeast's rail network would reach capacity within six years unless the vital second cross river link was built.

"Doing nothing is not an option, it means very limited opportunity to increase services on the rail network and not just in the inner city but across the rail network," he said.

"The cap on the capacity of the central area will lead to chronic rail crowding and effectively divert demand away from rail to congested roads and an already crowded bus network."

Mr Franzmann said the southeast's reliance on buses and building more roads was not sustainable, with an extra 1200 buses expected to be moving through the CBD every hour by 2026. "We know the inner city bus infrastructure can't cope with that," he said.

http://www.couriermail.com.au/news/features/push-for-rail-tunnel-funding/story-fn4z2520-1225834056511

6) Major re-think of urban planning - stop the unsustainable urban sprawl (including Flagstone and Ripley), build up, not out, encourage living close to work (don't tell that to Sunshine Coast commuters). Sorry mate, the Australian dream is over!

Not fast enough, politically impossible.

7) Decentralise employment - would require more provision and higher frequency orbital and counter peak public transport. Current rail infrastructure restricts the latter. More likely to increase car use.

Orbitals will help, decentralisation again, not fast enough, politically impossible under democratic government.

A peak oil crisis - Federal and/or State Government may suddenly find funding for CRR out of nowhere.

This is just half our luck, remember petrol and fuel prices for these buses might actually be higher with a carbon tax or ETS
scheme in place by then. And oil prices will go only one way- UP.

9) Discourage the use of public transport - if rail patronage does not increase, then there will still be spare capacity in 2020. TransLink appear to be having quite a good attempt at this thanks to their recent fare rises and lack of service improvements.

Why do I think this is TL's preferred option?

[colinw]

Some more detail about CRR cancellation in this QLD Government Media Release.  The relevant bits are highlighted in yellow - this is a long release but I have quoted it in full because I think it is worth reading.

Joint Statement:

Premier and Minister for the Arts
The Honourable Anna Bligh

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser

Friday, January 28, 2011

TRANSCRIPT - PRESS CONFERENCE - 11:00AM FRIDAY 28 JAN

E & O E – PROOF ONLY

TRANSCRIPT

JOINT PRESS CONFERENCE

11AM FRIDAY

28 JANUARY 2011

RE: MID-YEAR BUDGET REVIEW; CROSS RIVER RAIL; CYCLONES; COUGAR ENERGY

PREMIER ANNA BLIGH: January 2011 has seen catastrophic flooding across three quarters of Queensland. That means we now face a massive reconstruction task. The early estimates of the cost of that task, of just rebuilding what we have lost, is around $5 billion.

Every family that's been affected by this flood are now rethinking their budget, their family budget for this year and the Queensland State Government has had to exactly the same thing.

Yesterday we saw a Federal funding package that provided us with some certainty and confidence about the Federal Government's contribution to our reconstruction effort. I'm very pleased to say that we are in a position, at the state level, to provide an initial allocation of $1.5 billion to the Queensland Reconstruction Authority to add the Commonwealth's $2 billion. So a budget of three and a half billion dollars as a starting point for the Reconstruction Authority. That $1.5 billion constitutes more than our 25 per cent share of the rebuilding task. There's money there for other issues beyond the normal disaster arrangements. These funds will be funded from the proceeds of the sale of the lease of the Abbot Point Coal Terminal. This was always part of our economic strategy, it's currently on the market and rather than use these funds, as planned, to pay off debt, they will be now directed to the Reconstruction Authority to fund disaster recovery, which for Queensland now has to our number one priority.

Further, this decision means that we can continue with the bulk of our building program. We will need to put one major project on the backburner for now, because we are simply not in a position to put it into this year's budget, and that will be the Cross-River Rail project. So we will see the Cross-River Rail project put on the backburner for around two years. Clearly that will be a decision that's reviewed in subsequent budgets, depending on how the economy is recovering. But we need to say, right now, that cannot be a priority.

Putting this project here in Brisbane on hold for two years means that we have been able to proceed with major projects across the regions, as planned, that are important to those regional economies. So in Cairns we will see the Cultural Centre proceed; in Townsville, the cruise terminal and the port redevelopment proceed. The major hospital rebuilding programs in Cairns, Townsville, Mackay, Rockhampton, Sunshine Coast and the Gold Coast; all proceeding. And the Gold Coast Rapid Transit project proceeding as normal. So other than the Cross River Rail project we have been able, despite the devastating hit that we've taken to our economy and our budget, to hang on to our building program because that's important for local jobs and it's important for the future of a growing state.

We'll also be having to scale back on public sector spending and this will mean a new voluntary redundancy program that public servants who are not essential front-line staff will be able to access. This has been the subject of preliminary discussions with unions and we anticipate that there will be a number of people, given the aging profile of our workforce across a number of areas in the public sector, that is an area that we will be able to see some significant recurrent savings in.

So all in all, this is a package that sets a very solid financial foundation for the new Reconstruction Authority; a $3.5 billion budget between State and Commonwealth funds to get on with the job of rebuilding Queensland. It's a package that's been put together with no new taxes or increases in state taxes or charges. We know that people are going to be doing it tough and we won't be hitting them on any of those areas. It also means no cuts to our existing building projects. That is important for the long-term strength of our economy and it's particularly important in some of our regional economies that we keep going full steam ahead with those projects. As we rebuild Queensland and reconstruct what we've lost, we don't want to see the economy slow down in other parts of the state which haven't been flood-affected. So the big projects in Cairns, Townsville, Gold Coast, Sunshine Coast and other parts of regional Queensland all going ahead. A package that underpins a solid foundation to take us into 2011 and 2012, where we can rebuild a stronger Queensland. I'll invite the Treasurer to give us some more details.

TREASURER ANDREW FRASER: Thanks Premier. This is a down payment on flood recovery. The infrastructure cost for the state of Queensland from flood recovery will be on $5 billion. Around half of that will be from transport and the road network in particular. Around $2 billion will be the cost that local councils assume in repairing their own assets and around $500 million. The balance, being other public assets, including schools and other public buildings right around the state. The Commonwealth share of that bill is just under $4 billion, and you saw the Prime Minister yesterday allocate $3.9 billion in their own budget towards the Queensland recovery effort and they've provided an advanced payment of $2 billion towards that. When $2 billion is a deposit you get a sense of the size of the task here.

As I've said many times, the hit to the budget won't just be from the rebuilding of infrastructure, it will also be in the damage to the economy and in lost revenue. The floods do in fact come on top of other hits; $1 billion razored off GST in the allocation at the end of last year and of course we'll see an impact on the mining sector with royalties expected to be down by nearly $300 million this year alone before price recovery.

Our economic recovery was building before the floods hit. We climbed back to 2.3 per cent growth last financial year. That was in line with the national growth rate. We were looking to have a figure of around 3 per cent forecast for this financial year, the current financial year we're in. But the floods will now swamp that with growth expected to now be one and a quarter of a per cent. So while we count the cost of lost production now, there was already a lot of investment locked in to the Queensland economy, in particular those big LNG projects which will inject massive investment spend that was ready to rip into the Queensland economy and provide support and demand as those projects ramped up. So the stimulus effort of the rebuilding effort will also now contribute towards the end of the year and that means we need to get ready for the economic rollercoaster. We will dip and then we will soar. Our growth rate for next year will in fact be revised upwards, as all that activity combines together. This is going to be a wild economic ride.

Of course we're also going to see unemployment be a particular challenge at the start of the year, but then the demand for skills will likely see a tidal wave in the market toward to the end of the year. As the Premier indicated, we have had to put a priority on flood repair work and on front-line work and that means that the Cross River Rail project will not start as planned. Shortly before Christmas we submitted to Infrastructure Australia a proposal for a project for the cost of $7.7 billion, requiring a 75 per cent contribution from the Commonwealth. Clearly that's not about to happen. The government has been working on plans for the project to commence construction in 2013. That would have required this year's budget to provide the allocation of funding to allow that to commence and we're not going to be in a position to do that. So while the project needs to take place to relieve congestion on the rail network into the future, it does need to wait at this point in time because of the circumstances we find ourselves in. Brisbane will have to wait a bit longer for its next tunnel.

Also the Voluntary Separation program, which the Premier mentioned, will ensure that while we need more police, doctors, teachers and nurses each and every year, there is an opportunity for those people who have been a part of the restructure of government, to voluntarily leave. There will be not one forced redundancy from this program but it does provide an opportunity, in consultation with unions, for those people who may have delayed their retirement because of the impact on superannuation from the GFC to access this arrangement. That means that we can put all our resources to the frontline to meet the needs of a growing population.

Today we make a start but there's a long road ahead.

PREMIER: Can I add, in relation to Cross River Rail, while we will not be in a position this year's budget to allocate funds for construction, we will continue to stand in the market, we will continue to acquire the corridor. We know that there will be hardship cases, people wanting to put their homes on the market and there will be sufficient funds, we believe, for those people who voluntarily want to make that move to do so. We won't be doing compulsory resumptions but there are people who want to get on with their lives and the corridor will continue to be acquired because this is a project that will go ahead.

JOURNALIST: Do you anticipate the $5 billion bill to go any higher?

PREMIER: It's important to understand that the $5 billion estimate is just that, an early estimate. I do expect that we may see the bill rise higher than that. We are still seeing, in some parts of Queensland, the waters have yet to recede. Parts of St George, Dirranbandi; the highway down there has still got water on it. Until we get quotes in there on our rail lines and some of the big infrastructure, the best we can do is an estimate and that's what $5 billion is. We think it's a sound estimate but we don't claim that it's precise and I would expect to see that the final bill will be higher than that.

JOURNALIST: (Inaudible)

PREMIER: It is important to remember, as we begin the reconstruction task here and count the cost of it, that our wet season is not over. We have significant weather events forecast for next week, which could add to the damage bill.

JOURNALIST: With the Cross River Rail (inaudible) and how will you deal with that (inaudible)

TREASURER: It's important to remember that ultimately because there is one rail crossing this is a project that's needed in the end and there does become a point where congestion will increase on the rail network. But the Cross River Rail was going to facilitate that and reduce average travel times by 7 minutes and the fact is we're all going to have to wait a little bit longer. It doesn't mean that the rail network won't continue to operate but it does mean that there's a congestion point. Obviously we'll need to build the project into the future but it's simply not possible at this point.

JOURNALIST: When are you now anticipating Queensland will get back its AAA credit rating?

TREASURER: I've always said that this was a 5 to 10 year task and clearly at the end of last year ratings agencies were making public statements that that could be achieved sooner. Obviously this puts us back. This won't help us get the AAA credit rating back any sooner but the priority here has to be on funding flood recovery, not regaining the AAA credit rating at this point.

JOURNALIST: So realistically when do you think that may be feasible?

TREASURER: I think it would still stick to my original timetable.

JOURNALIST: Treasurer, there's a massive drop in property taxes, was that on the cards before the floods?

TREASURER: There was a drop in property taxes that we were going to factor in because of softness in the property market, because of constrained credit conditions. That's been compounded by the floods, so that obviously delivers the hit that you see factored into. But it's important to understand that obviously the turnover, which is what generates property taxes in Queensland, will be constrained by flood recovery.

JOURNALIST: Where do you think the voluntary redundancies will come from?

TREASURER: It'll be open across the public sector to non-frontline staff. So the Public Sector Commission has a classification of people who work on the frontline and those who don't. It will be open to those public servants in essentially the core public service who want to exit, to do so.

JOURNALIST: Given the drop in royalties, are you tempted to put up the rate of royalties?

TREASURER: No, we've got very clear guidelines that we've put in place on those royalty arrangements. What we'll need, what will happen though is, you'll see, and you've already seen it, the price in the spot market move up as market forces take place. So we have absolutely no intention of revisiting the royalty rate, full stop.

JOURNALIST: What's the revenue impact of shifting royalty collecting from a quarterly to a monthly basis?

TREASURER: It's proposed to do that from next financial year, which will align with the system that's proposed for the new Commonwealth taxation arrangements. So there would be a small cash flow in moving to a monthly saving – but I can get you a figure. But, in terms of royalties, Paul, it would be point zero-something.

JOURNALIST: Are you going to be recording them more often or is it the plan to do it twice a year?

TREASURER: We would do it twice a year. Presently its quarterly payments in arrears.

JOURNALIST: (inaudible)

TREASURER: In the submission that went to Infrastructure Australia it was forecast at 2018. So obviously that timetable would be back by two years. That doesn't mean that the network stops. That means that obviously into the future you need extra capacity.

JOURNALIST: (inaudible) extra services (inaudible)

PREMIER: One of the tasks that the Department of Transport has now been tasked with is whether there is any feasibility with timetabling to relieve some of the pressure in those years on a forecast basis. But yes – it will mean some inconvenience to Brisbane travellers in sometime between 2016 and 2018. We believe that is a small price to pay to ensure that the regional economy of Queensland, so central to the prosperity of everybody, gets back on its feet.

Of course we'll review the decision. If we see income increase at a faster rate than we currently forecast, we may be able to revisit it. But, we can't recover as quickly as possible from a devastating, catastrophic disaster like this without having to take some hard decisions. As I said, every family that's been affected by this flood right now is looking at the family budget, and they may not be able to buy the new car that they had planned to buy this year. They may not be taking the family holiday that they'd be planning for five years. What they will have to do is rebuild their homes and, just as they're rebuilding their homes, we have a state rebuild and that means we have to put some things further back than we would have liked them. It's not coming at the best possible time but we will still get it.

JOURNALIST: (inaudible) the most important thing on your books is the first thing that you chop?

PREMIER: It's called a catastrophic devastating disaster. What we've seen in January...

JOURNALIST: (inaudible) why does this one get chopped first?

PREMIER: Because this is the major project that would have had to be funded in this budget and this budget has to be about rebuilding and reconstructing.

JOURNALIST: (inaudible) to change the GST funding structure, given the big drop last year?

TREASURER: I beg your pardon?

JOURNALIST: (inaudible) GST funding arrangements, will you try and (inaudible)

TREASURER: I always do that. It's part of my PD I suppose, Roseanne, but, and I had a pretty good win last year and it's a good thing that we did because that helped overcome some of the other changes. But, obviously we want to make sure always that the GST arrangements provide the best assistance to Queensland and that will be something that we continue to pursue.

JOURNALIST: How much will you save by deferring Cross River Rail?

TREASURER: Well the project had a figure of $7.7 billion, which we would have to had to begin putting into the budget this year, as I explained...

JOURNALIST: How much will you have saved by deferring by two years? How much were you forecast to spend in the next budget?

TREASURER: No, to understand we were going to put the numbers in to build it in this budget. We're now not going to do that.

JOURNALIST: Yeah but how many millions would that involve? How many millions would you have to had set aside in this budget?

TREASURER: I can get you the figure; that would have been over the next three years of the budget estimates. But that's, on that balance, three quarters of 7.7 billion.

JOURNALIST: Given the drop in revenue for Abbott Point, do you still expect to get that 1.5 billion?

TREASURER: Let's be, let's be clear about what the effect of the weather event has been on Abbot Point Coal Terminal, which is 40 minutes north of Bowen. The Newland system has been operating throughout this period of time. Abbot Point Coal Terminal have been operating at full tilt. So it's been not affected substantially by the floods. So yes, we certainly do believe and not only that, when you're looking at a 99 year investment, you don't make a decision about what happened last week. You take a view about what's going to happen for the next 100 years.

JOURNALIST: (inaudible) you're basically saying we need 1.5 (inaudible)

PREMIER: We've always indicated that we thought that was our minimum. That was something we identified as the value of this asset when we identified the sales program. So I don't think we're telling potential buyers anything that we didn't already have in the public arena.

TREASURER: But let me, can I just add to that point also, which is, the transaction is well progressed and I'm confident, as this point, that the person who purchases Abbot Point Coal Terminal might have to pay above that.

JOURNALIST: And what are you going to do with the extra money above 1.5?

TREASURER: We'll make that decision then.

JOURNALIST: Three quarters of the 7.7 billion is that always what you expected to pay for that Cross River Rail? You just said that you, over the next three years...

PREMIER: No, it's a project that was always going to require Federal government assistance, which is why we submitted it as our number one priority to Infrastructure Australia...

JOURNALIST: (inaudible)

PREMIER: ...Three quarters of the state's share. Remembering that we are still in the final stages of the feasibility project, so we're not in a position to give you precision around how it would have been cash-flowed. But we know that we could not have meet, met the target date without this budget, starting to factor in for '11/'12 and particularly '12/'13.

JOURNALIST: So in response to a question about how much was in the Budget for the Cross River Rail, the Treasurer just said three quarters of 7.7 billion...

TREASURER: No, the answer Patrick is zero. We were going to put the money into this year's budget – we now can't.

JOURNALIST: Yes and the question was how much, what was the figure you were going to put?

PREMIER: And the difficulty in answering that is we have yet to put together this year's budget, and we've yet to get the final feasibility. But we know that it's a big price-tag, we know that we would have had to have put in significant funds and how that was cash-flowed would have been a decision in this year's budget process.

JOURNALIST: But what I'm trying to clarify is, the Treasurer just said three quarters of 7.7 billion. What's that figure relate to?

TREASURER: Well there would have been three years of construction in the budget.

JOURNALIST: So are we saying then is at least a billion would have been set aside in this year's Budget.

TREASURER: It would have been upward of that but the fact is we're not going to do that because we aren't in the position to fund that construction project.

JOURNALIST: (inaudible) how much you would save by not putting it in the Budget?

TREASURER: Well we're going to save, at this point, $7.7 billion because we're not going to allocate it.

JOURNALIST: But you were saying you wanted three quarters of that to come from the Feds didn't you?

TREASURER: Correct.

JOURNALIST: But you have to allocate it and then they reimburse you, so to speak, down the track?

TREASURER: Well it's become a theoretical argument because the Federal government's not in a position to provide their contribution.

JOURNALIST: Why not?

TREASURER: Well they've indicated...

JOURNALIST: (inaudible)

TREASURER: They've indicated...

JOURNALIST: (inaudible)

TREASURER: They've indicated pretty clearly that they're not in a position to do that right now.

JOURNALIST: (inaudible)

TREASURER: Certainly my discussions with the Commonwealth indicate that they're not in a position to do that right now.

JOURNALIST: Is that before or after the floods?

TREASURER: That's been since the flood.

JOURNALIST: Premier, Kristina Keneally, has she spoken to you about getting Sydney families who are struggling with the cost of living some sort of concession to pay less of the flood levy?

PREMIER: I'm not aware of those comments.

JOURNALIST: Do you think that's fair, Sydney-siders who are struggling should have to pay less?

PREMIER: I would hope that all Australians understand how important it is to get Queensland fully back on its feet as quickly as possible. And, as I said yesterday, I know that nobody likes to pay more but nobody who's been affected by this flood wanted this disaster to come through their house either. What matters to Australians everywhere is that Queensland cattle get back to market and get back at a reasonable price because we've rebuilt the roads and rail. What matters is that tropical fruit and other produce gets to the southern markets at a reasonable price, not driving up the grocery bill. So every Australian benefits the quicker we can get our agricultural and mining sectors operational and our roads and tourism sectors up and running.

JOURNALIST: So you don't think anyone should be exempt from it?

PREMIER: Low-income earners are exempt and that's...

JOURNALIST: Apart from the people who have been announced as exempt?

PREMIER: Well I was, from the very beginning of this discussion I said I thought it was important that any levy did not hurt those people who are battlers, those people on low incomes. And I think where it's been struck is fair enough.

JOURNALIST: (inaudible)

PREMIER: Clearly much of the public infrastructure that has to be rebuilt is currently owned by both state and local governments. I might just explain that normally in a much smaller scale disaster councils do the work and then submit invoices and are reimbursed and sometimes that can take 12 months or two years through the processes of all different levels of government. What this $400 million does is directly give councils in the same way as the state has got this from the Commonwealth, an advance payment so they can get on with the job. Particularly with smaller councils who would have a tougher job carrying that sort of cost over a 12 month or longer period. In terms of allocating that it will be done on the basis of those councils that have the biggest ask and the ability to pay. We'll be working with every one of them. They will all get the money that they need ultimately but those who have a bigger issue around the size of their budget and their cash flow will be the ones we'd be seeking to give the up-front assistance to.

JOURNALIST: (inaudible)

PREMIER: Through the Reconstruction Authority, yes.

JOURNALIST: Treasurer what's happening with state debt? Is it basically, from all the asset sales, its allowed you to wipe $7 billion of the total state debt so it's now what 78, 79 billion?

TREASURER: If you look at what's going on this year you can see that in the budgeted figure for this year it was around $62 billion, it's now around $52 billion because of those proceeds and the position that we're in. Obviously the deficit expands in order to fund the reconstruction effort over the next couple of years which contributes to the final position.

JOURNALIST: Can you give me the starting figure for this year's Budget (inaudible)

TREASURER: The deficit for the 2011-12 budget will be around $3.9 billion because of the cost of flood recovery.

JOURNALIST: What's that figure?

TREASURER: $3.9 billion.

PREMIER: That's for next financial year.

JOURNALIST: Will the Reconstruction Authority have enough money to rebuild things to a better standard, flood proofing or just cover the rebuild?

TREASURER: As we said earlier the share of $5 billion is $1.25 billion. We're providing an allocation of $1.5 billion which obviously gives room for them to make decisions about those things which they might rebuild to a different standard.

PREMIER: But under the national disaster guidelines and requirements there is express provision for what's called betterment, that is that you might rebuild a bridge but build it higher so that next time it will not be washed out by floodwaters. So there is provision under the disaster guidelines for that. What is not included and which we will also be looking at after the rebuilding are the other bigger issues about flood mitigation such as levies or dams.

JOURNALIST: Have you got any special provisions in place for the cyclones that are forecast to come across the coast?

PREMIER: I'll be making a statement about that later this afternoon. I've spoken this morning to the Bureau of Meteorology who advise me that they hope to be in a better position this afternoon for some precision about what we can expect from the tropical cyclones that are forming off our coast. But I do need to say that I think that this is a potentially very serious situation and we will be putting in place arrangements to make sure that we're ready for anything that might occur next week.

JOURNALIST: How are you going to meet the funds to fix the payroll system?

TREASURER: That's an allocation that's made in the document as you can see and obviously those funds are provided for in this budget.

JOURNALIST: (inaudible)

TREASURER: As the document details the savings will come primarily from the Separation Program so obviously the cost for health payroll is in extra people to operate the system and as it's detailed in the document that's obviously going to be funded through the program of separations.

JOURNALIST: Treasurer, a few weeks ago you said the cost of last year's floods was still washing through the Budget. How much of that is yet to wash through?

TREASURER: We had about $1.4 billion in last year and this year in terms of the floods at the point that we did the budget last year. There's around $2 billion of existing NDRA expenditure, natural disaster expenditure that's contained in this budget apart from the $5 billion that has been allocated now because of the floods this year. So the answer to your question in short is $2 billion plus five today.

JOURNALIST: (inaudible) Cougar Energy trial has stopped (inaudible)

PREMIER: The trial of Underground Coal Gasification by Cougar Energy in the southwest of Queensland has been ceased by the Department of Environment and Protection Agency. Obviously we were absolutely committed to only letting this trial continue if we were satisfied it could meet all of the environmental standards after a very comprehensive review. It's clear that it can't do that and it will not proceed. I know there's been some speculation about the announcement today. Can I say we gave a commitment to the company that they would be given certainty by today and it's the mid-year review that's actually changed because of flooding. Ok?

TREASURER: Thanks.

JOURNALIST: Can I just ask the future of that industry (inaudible)

PREMIER: Well we've put a moratorium on any further applications for that sort of process. We did that as I recall Cathy, and I'm happy to confirm it, about two years ago. We said we would let those that currently had approval, and there were three of them go to trial but we would put a moratorium on any further approvals til we was the outcomes of the trials. This particular company will not be allowed to proceed but there are the other two trials. We won't make a decision on that technology until we see the outcome of those trials but we certainly won't be lifting the moratorium until we've seen the outcome.

JOURNALIST: In terms of the savings from the Cross River Rail, you have some numbers that you can get back to us with?

TREASURER: Sure.

JOURNALIST: With voluntary redundancies, if they're to raise $175 million and health payroll costs $209 million...

TREASURER: Each year Daniel.

JOURNALIST: Ok, so...

TREASURER: So in two years you'd get $350m. There's your answer.

JOURNALIST: So the bulk of the redundancies (inaudible) payroll...

TREASURER: It will fund that. But then you get that saving each and every year, it's not a one off. You get it every year into the future.

JOURNALIST: Premier when does the money start to flow to the Reconstruction Authority, you're saying now that the review is done, the money starts flowing?

PREMIER: Yes, well, the Reconstruction Authority doesn't become a legal entity until it's passed by the Parliament but we would expect that it'll be established within four to five weeks and it'll be established with this budget.

JOURNALIST: The $400 million for local governments that goes mid-year does it?

PREMIER: I'll be talking with Mayors about how we can get those funds to them as quickly as possible. But the funds from the Commonwealth will come to Queensland in this financial year, that is before the end of June and our $1.5 billion will go into the Authority as well.

JOURNALIST: You'll seek to fast track the Authority in the first sitting of Parliament?

PREMIER: That's what I'm hoping to do and I would hope that we will see bipartisan support for that. Clearly some of the very big projects that both state and local governments have, getting the money is one thing, getting contractors, getting labour and getting the projects started and starting to include the cost is another. So for some of these projects the bulk of their cost will fall in the first part of the next financial year.

JOURNALIST: So some of these councils, they can start...

PREMIER: Absolutely. Absolutely and that's what we want them to do.

TREASURER: We've already given the go ahead to do that.

JOURNALIST: Just before you go, later today on the cyclone thing, what time will that be?

PREMIER: We'll give you some advice. As is said I've spoken to the Bureau; they're hoping to give you something a bit more detailed and I would hope to be making a statement early afternoon. Ok.

ENDS

[ozbob]

From Rail Express click here!

QLD Gov delays Cross River Rail
by Rail Express — last modified Feb 02, 2011 09:14 AM

The Queensland Government will delay the $7bn Brisbane Cross River Rail project for at least two years to help fund the $5bn damage bill for the state's public infrastructure that was affected by flooding.

According to the government's mid-year economic review released last Friday, Queensland will run a $4bn deficit in the coming financial year, with almost $2.5bn worth of damage to the state's major road and rail networks.

Premier Anna Bligh said that delaying Cross River Rail would only "inconvenience commuters" and was a small price to pay for the flood disaster.

Brisbane's inner-city rail link across the river will reportedly reach peak-hour capacity by 2016.

"Putting this project here in Brisbane on hold for two years [until at least 2015] means that we have been able to proceed with major projects across the regions that are important to their local economies," Bligh told the Courier Mail.

Handing down the MYFER Queensland treasurer Andrew Fraser reportedly said it was "obvious" the Federal Government could also not contribute to Cross River Rail so the project must be delayed.

A major portion of the government's contribution to the flood reconstruction effort will come from the sale of the long-term lease of the Abbot Point Coal Terminal, expected to bring in at least $1.5bn.

The "lynchpin" of the government's ambitious plan for South East Queensland, the project was currently undergoing a $25m feasibility study. Cross River Rail will provide essential capacity at the core of SEQ's rail network that could double the number of train services from the suburbs to the city.

The project would provide higher frequency and improved reliability on all lines, making it possible for the rail network to move up to 240,000 passengers into the inner city during the two-hour morning peak, compared to the current 54,000.

Cross River Rail will provide new links in SEQ's network including new rail line and stations in the inner city and a new rail line from Alderley to Strathpine, Darra to Springfield, and Ipswich to Ripley.

[ozbob]

From the Brisbanetimes click here!

Project delays 'inevitable' after underground rail shelved

Project delays 'inevitable' after underground rail shelved
Daniel Hurst
February 10, 2011 - 5:50AM

Some of the big-ticket development slated for Woolloongabba and Bowen Hills may need to be delayed following the deferral of Brisbane's $8 billion underground rail project.

The Queensland government says the cross-river rail postponement will affect the timing of development in the key inner-city urban renewal areas, but has downplayed the overall impact.

The government last year unveiled plans to allow buildings up to 40 storeys high in some parts of Woolloongabba, where a new underground railway station would also be built.

The powerful Urban Land Development Authority has also been working on the development of an urban development area at Bowen Hills, including the RNA Showgrounds home to the Ekka.

The existing railway station was set to be replaced with a new one as part of the subway project.

Plans for the $7.7 billion project include a new 18-kilometre-long north-south railway line, 9.8 kilometres of which would be in a tunnel.

New underground stations were planned at Boggo Road, Woolloongabba, Albert Street and Roma Street, while new surface stations were slated for Exhibition and Yeerongpilly.

The Bligh government, which wanted the federal government to chip in three-quarters of the funds, announced last month the project would be delayed by at least two years because the floods had battered public budgets.

Work on the rail project would be pushed back from 2013 to at least 2015, with the project now not due for completion until 2020 at the earliest, Treasurer Andrew Fraser said.

Queensland Infrastructure and Planning Minister Stirling Hinchliffe said the postponement of the new railway stations would have an impact on the Woolloongabba and Bowen Hills urban development areas.

"There's no question that the delay will have some inevitable effect on the timing of some of the development that occurs in these urban development areas," he told brisbanetimes.com.au yesterday.

Although it would affect timing, the long-term plans for the areas would remain unchanged, he said.

A development scheme for the 10-hectare site bounded by Vulture, Stanley, Allen and Main streets at Woolloongabba is due to be released in coming months.

The draft version, released last year, flagged a mix of residential, retail and commercial development with homes to be built for up to 5000 people.

Buildings up to 40 storeys could be built above the public transport interchange, but development in other parts of the site would be limited to 15 to 20 storeys.

However, the development scheme says the transport investigation area – where the new Woolloongabba railway station would be located – could not undergo any major development until the key transport projects were undertaken.

A cross-river rail project planning document says high-rise development would occur over the northern half of the station, with platforms located 28 metres below surface level.

The document, released before the project was delayed, suggests the new train station would act as a catalyst for the area's redevelopment.

It refers to "the critical need for cross river rail to support daily access for future residents, workers and recreational uses".

The cross-river rail planning document also suggests the Exhibition station would play a key role in spurring on development within the RNA showgrounds site.

Medium-to-high density residential and commercial developments within walking distance of public transport are planned in the 108-hectare Bowen Hills urban development area, east of the Royal Brisbane and Women's Hospital.

"A fully operational [railway] station would promote more rapid market absorption of development and support greater commercial yields subject to future planning outcomes, particularly within the RNA site," the cross-river rail document states.

Mr Hinchliffe stressed the government was still committed to the rail project, despite the delay.

He said the planned cross river rail stations were "just going to enhance" the transport already available to residents in the urban development areas, as they were close to major existing bus stations.

Mr Hinchliffe said he was confident development in both areas could proceed in coming years and there would be private sector interest given how close the sites were to the city and existing transport.

The state government last year estimated development in the Woolloongabba area would take 10 to 15 years to fully complete.

Mr Hinchliffe said the plan may be staged to prevent early development impacting on the proposed cross river rail site, but he did not expect the delay to cause "a very dramatic change to the overall picture".

Urban Development Institute of Australia Queensland executive director Brian Stewart said the delays to the cross-river rail project meant development may have to be staged differently.

[Jonno]

The perfect road storm approaches. Delay the CRR so more people have to drive. No CRR so inner city high density development is delayed.  Urban sprawl is ramped up to cater for population growth leading to even more people on the road.  The delay of the CRR will sit up beside the removal of Trams, Clem 7 and Airport Link as one of the most politically stupid decisions ever made.  I hope you enjoy toxic air because that is what future holds!

[Stillwater]

This latest news report on CRR refers to a $7.7 billion price tag.  A figure of $8.5 billion is in the public domain.  The state government should be able to answer one simple question - What will be the revised cost of CRR when work is scheduled to start in two years time?

Of course, this assumes that the project is viable.  That has yet to be shown because the business case is still being developed.  The other assumption is that the federal government will be in a generous mood and will provide three-quarters of the cost, whatever that cost will be.

[Stillwater]

The fine print of the Connecting SEQ 2031 document reads: 'The State reserves the right to contribute subject to fiscal capacity.'   This applies to all projects listed in the document.

[colinw]

On January 28 I wrote ...

I also wonder what the downstream impacts of this decision are, specifically on:

- viability of the Yeerongpilly TOD,
- impact on the Boggo Road precinct,
- viability of the Woolloongabba redevelopment,
- renewal plans for the southern CBD, and
- renewal plans for the RNA site.
- not to mention leaving a bunch of Yeerongpilly property owners hanging by a thread.

Deferring CRR pulls the rug out of much of the Government's inner city development strategy, if it had one.

Looks like we have an answer to my question now.  The Government has indeed pulled the rug out from underneath its entire inner city development strategy.

The sheer stupidity of the CRR deferral is plain to see.

I predict that the decision to delay CRR will end up costing Queensland more than the entire flood crisis did.

[mufreight]

On January 28 I wrote ...

Deferring CRR pulls the rug out of much of the Government's inner city development strategy, if it had one.
The sheer stupidity of the CRR deferral is plain to see.

I predict that the decision to delay CRR will end up costing Queensland more than the entire flood crisis did.

It is beyond question that you are right on this, a further example of the fiscal incompetence of the present government, both State and Federal

[#Metro]

It is one thing to be reasonable and say 'subject to fiscal capacity'.
It is quite another to make up plans that are doomed to fail and are impossible to fund from the outset. There is no way that $6 billion worth of capital construction per year, every year for the next 20 years straight is going to happen. They haven't even been able to get over the first hurdle- CRR!!!

We haven't even included operations costs etc.

Connecting SEQ 2031 is a real turn around document, but if it can't be funded, there really isn't of much standing compared to a document that was properly costed and paced and achievable. IMHO we should draw up our own ideas...

[mufreight]

Being somewhat cynical about this Connecting SEQ 2031 has just been another exercise in duplicity by an incompetent government.
Looks and sounds good but we know that it is not doable anyway but it migh keep the public happy for a while.
The money and effort expended in compiling and presenting this government aspirational propandanda could well have been expended on at least one real on the ground piece of infrastructure that would be of practical benefit rather thanj simply providing employment for another office full of politicaly motivated unproductive high maintenence yes minister bureaucrats.
TT has nailed the fact quite well.
Not constructing the CRR has effectively made a number of other infrastructure projects less than viable as well as increasing the costs of CRR if and when it is commenced beyond the cost of the interest if the funds to commence it now were borrowed.
The domino effect of the fiscal incompetence of this decision will over time prove more damaging to the economy and livability of this state than the floods will.
Past time for the government to put up or shut up.

[Stillwater]

So, let's just look at this.  Assuming the state government is correct, it says it can save $1.6 billion by deferring CRR a further two years.  That fact has been disputed here, but putting that aside for the sake of the debate, it now says that several inner-city renewal projects that piggy-back off CRR will now not proceed also.  So the obvious question must be - How much were they going to costs and could those 'savings' be put to the unexpected network projects that will now have to occur to address capacity and operational constraints flowing from the decision to postpone CRR.  After all, the costs/savings of the inner city renewal projects were not identified as part of the $1.6 billion package.  Or have they become 'subject to fiscal capacity' and disappeared?

[#Metro]

Stillwater,

I think that these were the TODs. I would have expected that these would make money- after all, land rights to develop are being sold for a profit here...

[mufreight]

So, let's just look at this.  Assuming the state government is correct, it says it can save $1.6 billion by deferring CRR a further two years.  That fact has been disputed here, but putting that aside for the sake of the debate, it now says that several inner-city renewal projects that piggy-back off CRR will now not proceed also.  So the obvious question must be - How much were they going to costs and could those 'savings' be put to the unexpected network projects that will now have to occur to address capacity and operational constraints flowing from the decision to postpone CRR.  After all, the costs/savings of the inner city renewal projects were not identified as part of the $1.6 billion package.  Or have they become 'subject to fiscal capacity' and disappeared?

Defering CRR will not save a cent, it just defers the spending but the esclating costs as a consequence do have an actual cost of possibly double the inflation rate and coupled with the domino effect on other projects both government and private and on public amenity with the additional costs due to congestion and the road infrastructure that will be needed because CRR is not built.

[Golliwog]

From Brisbanetimes.com.au, available HERE

Cross-river rail 'vital' for development
Marissa Calligeros
February 12, 2011


Brisbane's leading developers say the state has dropped the ball on vital infrastructure projects, costing the city crucial investor confidence in the property market.

While Lord Mayor Campbell Newman and Prime Minister Julia Gillard continued to exchange jibes over how Brisbane's flood recovery would be funded, developers met in Brisbane yesterday to discuss the property market outlook.

Chief to the recovery and the restoration of confidence in the Brisbane market, according to the development industry, is a commitment from the federal and state governments to big-ticket infrastructure projects - namely the cross-river rail link.

The $7.7 billion project, which was to include a new underground railway station on Albert Street was due to begin construction in 2013, but the start date was pushed back to at least 2015 following the floods.

This means it may not be finished until 2020.

However, some developers remain concerned the project may never secure funding from the key body responsible for setting the nation's infrastructure agenda, Infrastructure Australia.

They fear the federal and state governments have failed to see the connection between long-term investment in public infrastructure, investor confidence and the diaster recovery.

Property analyst Michael Matusik told the room of developers yesterday "function over form" ('function' being key infrastructure) was needed, in order to entice interstate migrants and investors alike, back to Queensland.

"The cross-river rail needs to happen and it needs to happen now. We need key infrastructure and key development first - that's function," he said.

"I would think that the flood and rebuild is an excuse, an argument, for what we need."

Mr Matusik said the disaster rebuilding effort would provide a temporary boost to the state's building and construction industry, but focus should not be on shovel-ready projects alone.

He said the floating Riverwalk should not be rebuilt without a commitment to vital infrastructure projects, including the cross-river rail.

"It needs to be committed to and [it needs to be] communicated and shouted that we're not changing that program," Mr Matusik said.

Leighton Properties state manager Andrew Borger supported the motion.

"[Cross-river rail] does need to be committed to. It's important that the money is put aside now to be spent in a number of years time," he said.

"We can't afford to have that project not happen. In 2016, when we can't afford to put another single train on the track we can't avoid the issue. It must be committed to now for future years expenditure."

Brisbane's property market has not fared well following the global financial crisis, but Melbourne's market has boomed.

In the past five years five per cent of the population - nearly 400,000 people - have fled interstate, where housing is considered more affordable and job opportunities are a plenty, Mr Matusik said.

Queensland lost 11,600 construction jobs last year and the value of private sector building approvals fell from $18 billion in 2007 to $11 billion in 2009 - the lowest figure since 2003.

Mr Matusik said investor confidence had "evaporated" and with it the interstate migration necessary for the recovery of the property market.

"Confidence is missing," he said.

Delfin Lend Lease general marketing manager Stuart Leo said the cross-river rail link would go a long way to restoring confidence in the economy and in turn the property market.

"Queensland is a product and we need to reinvent it," he said.

Melbourne salvaged its "brand" after fastening development approval processes, opening the door for greenfield projects.

"Part of the key to [Brisbane's] re-invention is the cross-river rail link. It could be the shot in the arm Queensland needs," Mr Leo said.

"Queensland doesn't sell itself as well as it used to. The pride and promotion and one-upmanship can be revisited."

Mr Leo went so far as to suggest Premier Anna Bligh go door to door spreading the word to businesses interstate that Queensland was open for business.

Mr Matusik said the Urban Land Development Authority went part of the way speeding the approval process, but was more a "band-aid solution" to a greater problem, whereby developments were stalled by unreasonable appeal systems.

"Part of the solution to that involves approving what I call the 'low hanging fruit'; it's nonsense that there's a lot of development applications out there not being approved," he said.

"Let's approve and move on."

[mufreight]

Obviously as supporters of rail public transport we are not alone in viewing this deferment of the CRR as another fiscal blunder by an incompetent government that will not only not save money but will have a unafordable detrimental effect of the development of not only the Brisbane CBD but all of SEQ when the public transport systen sinks into total colapse.
Time for Boy Blunder, Botox Bligh, and Do Nothing Nolan to go, there is a limit to the damage that they are doing to the infrastructure of this state by their neglect and incompetence that can be tolerated, either by Mr man on the street or the big end of town.

[Jonno]

And Can Only Build Roads Campbell.  He has set this city back 30 years.

[Golliwog]

And Can Only Build Roads Campbell.  He has set this city back 30 years.

I'm watching the latest scandal with BCC with interest. If the CMC does investigate the reported collusion I'd be interested to know what else they find.

[Stillwater]

Gawd!  We sound like a bunch of old drunks propping up the bar on a Friday night - all crying into our beers.

I hope the CRR business case is being worked up still.  Australia is of a size that is can bite off a big project of this type only one at a time.  The big project that had IA backing in Melbourne (at half the cost of CRR) has blown out by a billion and there are other complications.  So, if that is scratched from the list, then you cast an eye down to the next 'big thing'.  That's CRR.  (Actually there are some NSW projects, but they are not ready, from a political or financial perspective.)  Potentially there is a couple of billion going begging, but not enough to build CRR.

Next year, when a Queensland election is due, Labor mates will be seeking to do each other a favour, providing the best opportunity for the state government to re-promise and repackage CRR.  If LNP gets up, the political dynamics change.

CRR is far from 'shovel ready'.  The reality is that even if the security trucks loaded with billions of dollars pulled up to the Queensland Treasury tomorrow, actual construction would be two years away at least.

We should understand fully what the Queensland Government means when it says a project is 'ready for construction'.  That does not mean the concrete can be poured the next day.

'Ready for construction' means a project moves from the concept stage into areas of detailed design (test drilling, surveying, complete engineering drawings etc) land purchase, EIS, planning and development approvals.  These are all necessary and are the 'pre-construction' components of a 'shovel ready' project, Queensland style.  Actual breaking of ground would be some years distance from the get-go date.

So, what might be needed immediately, is a further round of funding for 'proving up' works -- in the next state/fed budget.  That's feasible, and maybe that is what the state should go after from the feds -- a top-up on the money already committed for the business case development.  February-March is the time when budgets get worked on, and are finalised in April, before Anzac Day.  Thereafter things are locked in.

So, we shouldn't be pushing for the first installment in a construction project worth $8.5 billion, but maybe another $20 million for the pre-construction phase.  A $30-40 million payment for a 'look see' at something worth $8.5 billion is chickenfeed.  Money of that nature, if spent now, would reduce the delay time in the lead-up to actual construction, as most here would understand the word.