Palaszczuk Government appalled at LNP scaremongering over Cross River Rail

Deb Frecklington’s misleading comments over the funding of Cross River Rail show the LNP are not only opposed to this project and at odds with their federal colleagues, but are also willing to alarm Queenslanders for blatantly political reasons.

Deputy Premier and Minister for Infrastructure Jackie Trad said Deb Frecklington had been out peddling her five fallacies today, but it was evident the LNP has very little grasp on the detail and complexity of this vital infrastructure project.

“The business case for Cross River Rail is not a ‘secret business case’ as the LNP would have Queenslanders believe. It has been developed independent of government, by our independent infrastructure adviser Building Queensland, and has been willingly provided in its entirety to Infrastructure Australia and the Federal Department for Infrastructure and Regional Development,” Ms Trad said.

“We committed at the election to releasing summaries of business cases for major projects, including the crucial Benefit-Cost Ratio, so Queenslanders can have confidence that our government will invest in projects that deliver value for money.

“The five-page summary was not ‘heavily edited’ as the LNP is claiming. It too was developed independent of government by our independent infrastructure adviser Building Queensland and not altered in any way by the Government.

“The LNP’s attacks today are blatantly hypocritical. Not only did they not publish, nor indicate that they would publish, a business case for the BaT Tunnel or their New Generation Rollingstock, they didn’t even develop a business case for the $2.6 billion waste of taxpayer funds at 1 William Street.

“In fact, Scott Emerson is also on the record as saying government business cases should not be released in full because of commercial in confidence considerations.  

“Labor’s record of transparency will stack up over the LNP’s any day of the week.”

Ms Trad said the Turnbull Government required all major projects seeking infrastructure funding to assess value capture options as a condition for federal funding. 

“By slamming the exploration of value capture options, as required by the Turnbull Government, the LNP are effectively at odds with their federal colleagues and are willing to shut the door to millions of dollars in federal funding for major projects,” Ms Trad said.

“In accordance with the Turnbull Government requirements, Building Queensland examined value capture options as part of their independently developed business case for Cross River Rail – but this does not mean these options reflect Queensland Government policy or that they will be implemented.

“It is too early in the planning phase to rule other options for value capture in or out. Once established, the new Cross River Rail Delivery Authority will develop a detailed funding model and our Government will keep Queenslanders informed of our fair and transparent intentions every step of the way.

“While the funding model will consider availability payments, value sharing (in accordance with Commonwealth requirements) and development rights, the Palaszczuk Government will not be levying motorists to pay for Cross River Rail.”

Frecklington’s Five Fallacies

Claim: Labor will introduce the six new taxes to fund CRR.
Source: LNP Media Release 29/06/16 “Hidden Business case includes the following new taxes to fund CRR…”
Fact: When added up all of the value capture options exceed the cost of Cross River Rail ($7.38bn vs $5.4bn).  Exploring value capture is a conditional requirement from the Federal Government before funding will be considered. BQ has explored value capture options but these will not necessarily be implemented by Government.  Delivery Authority will now be responsible for developing a detailed funding model. While this will include consideration of availability payments, value sharing (in accordance with Commonwealth requirements) and development rights, the Palaszczuk Government will not be levying motorists to pay for Cross River Rail.

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Claim: Government will introduce a congestion charge to raise $1.2bn
Source: LNP Media Release 29/06/16 “Hidden Business case includes the following new taxes to fund CRR: Congestion Tax paid for by motorists= $1.2bn”
Fact: We have previously ruled out congestion charging and the business case notes this. The Federal LNP has made funding for infrastructure conditional on the exploration of value capture. 

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Claim: We said we would release business cases – we should release CRR Business Case in full. 
Source: Deb Frecklington on ABC radio, 29/06/16 “They took to the election that they would release full business cases.”
Fact: BQ policy document promises that it will release Cost Benefit Analysis summaries. Scott Emerson has previously said that government business cases should not be released in full because of commercial in confidence considerations. 

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Claim: Cross River Rail doesn’t cost $5.4bn it costs almost $10bn when you include operational costs.
Source: LNP Media Release 29/06/16 “...Cross River Rail which is set to cost almost $10bn, not the $5.4bn claimed by the government.”
Fact: The business case written independently by BQ says Cross River Rail will cost $5.4bn to build. Building Queensland estimates the yearly operational and maintenance costs of Cross River Rail will be $47 million in real terms.  Operational costs will be paid over a period of 30 years. Building Queensland’s report states that operational and maintenance costs will not be incurred until 2023. Additionally, the LNP never counted operational costs when they spoke about the cost of BAT.

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Claim: Labor has tried to hide these taxes by releasing a heavily edited version of the business case.
Source: LNP Media Release 29/06/16 “The premier tried to conceal the plans for the six secret taxes when she released and edited version of the business case on Monday that deliberately hid the new taxes to pay for the project”
Fact: Building Queensland is an independent organisation and released the cost benefit analysis summary that was endorsed by the Board as per the requirements under Legislation. The Cost benefit ratio for the project of 1.21 is not inclusive of any of the value capture options canvassed in the Business Case. That means not pursuing any of the value capture options would not impact on the BCR figure as reported.