Queensland Major Contractors Association and the Civil Contractors Federation Queensland are dismayed by the decision by the Federal Government to ‘reprofile’ Rockhampton Ring Road and divert critical funds to support infrastructure investment in Melbourne’s Suburban Rail Loop.
Announced by Treasurer Jim Chalmers as part of the Federal Budget, 50 per cent of the project’s funding has been withdrawn, throwing into doubt the future of an essential upgrade to the Bruce Highway that has significant benefits and improvements for the freight industry, local economy, and businesses of the region as well as the community.
“Rockhampton Ring Road is a vital part of Queensland’s only major highway linking the east coast and is a vital conduit for the movement of goods and people throughout the state. To see funding removed and reallocated to a project in inner-city Melbourne, which has a multitude of existing transport options, is baffling and a severe blow to regional Queensland,” said QMCA CEO Andrew Chapman.
“What is worse is that the project has already gone through a procurement phase and was weeks away from being awarded to the successful bidders, with contractors working collaboratively and in good faith with the Department of Transport and Main Roads to plan and deliver the project. This has seen the four contractors involved and the local supply chain, many of which as small local businesses, make investments in labour, plant and equipment to deliver this vital project, all of which are now potentially worthless.”
“It will make the entire industry question the word and the motives of the Federal Government and opens any Federal Government project to sovereign risk considerations,” said Mr Chapman.
Civil Contractors Federation Queensland CEO Damian Long, “The only conclusion that we can draw is that with a State Election looming in Victoria, the Federal Government chose to support them with additional infrastructure funding as we are not due for an election in Queensland until 2024.”
“We are calling on the State Government to call out this savage blow to a vital Queensland project and to question why funds have been “re-profiled”. In addition, we ask that the State Government steps in and fully funds the project to provide certainty for the businesses and thousands of workers who would have benefitted from investment in a project critical to the region’s future prosperity.”
“As a minimum, the State Government needs to progress the works immediately using the existing delivery partners, with them continuing to engage the local industry and sub-contractors in Central QLD, supporting the local economies, a key pillar of Queensland Government policy. Failing that the state government needs to work with industry to reshape a procurement approach that engages all levels of the industry with appropriately sized packages. The State Government can then recoup the Federal Government’s investment based on their ‘reprofiling’ time frames,” said Mr Long.
