Contractors are normally an optimistic bunch. No valley is too deep to bridge. No location is too remote to access. No risk unmanageable. Recently however, a very dark and gloomy cloud has formed over the contracting industry in Queensland.
Brisbane Metro is stuck in a station that has to move, Inland Rail is lacking an agreement to cross the border and water projects have slowed to a trickle.
It is true that compared to our Southern neighbours, Queensland is in the slow lane when it comes to development of new infrastructure but there are still reasons to be cheerful.
Industrial Relations
The recent Federal election result means that the Australian Building and Construction Commission (ABCC) is safe for at least another three years and there is an increasing focus on the criminal activities of unions.
Federal Labor has called for the removal of the head of the CFMMEU and are also looking to expel him from the party whilst the Federal Government is seeking to introduce legislation that would facilitate the deregistration of unions and union officials if they repeatedly break the law (Ensuring Integrity Bill).
Locally, the LNP opposition has tabled the Criminal Code (Trespass Offences) Amendment Bill 2019 which would substantially increase penalties for trespass including unlawful site entry.
South East Queensland City Deal
City deals aim to remove the dysfunction and politicking that can occur between different levels of government when it comes to the development of significant infrastructure project – such as has been witnessed recently with Brisbane Metro and Inland Rail.
City Deals work to align the planning, investment and governance necessary to accelerate growth and job creation, stimulate urban renewal and drive economic reforms. Whilst the deals do not necessarily result in additional Federal funding for projects, the integration of transport, housing and land use policies, create the opportunity for innovative financing and funding methods to deliver greater investment than could otherwise be provided.
On 15 March 2019 a letter of intent was signed between all levels of government to negotiate a City Deal for South East Queensland over the next 12-18 months. The deal is likely to be based upon the concept of achieving a 45-minute connected region comprising innovation precincts and a trade spine between Toowoomba and the Coast. In order to achieve this there would need to be significant investment in road and rail infrastructure including faster rail links between Gold Coast, Brisbane, Sunshine Coast and Toowoomba.
2032 Olympic Bid
A recent change in the rules for cities that wish to bid to host the Olympic games has opened up the possibility of an SEQ Olympics in 2032. The change in rules allows for bids to be made by multiple cities or regions and these bids can be made at any time outside of the usual bidding periods. With the next Olympics taking place in Tokyo (2020), Paris (2024) and Los Angeles (2028) there is an opportunity for SEQ to bid for the 2032 Olympics.
The hosting rule changes were introduced to address the fact that it was becoming prohibitively expensive to bid and host an Olympics and along with other measures it has been estimated that an SEQ Olympics could be cost neutral.
There would however need to be a significant investment in transport infrastructure and facilities which could tie in very well with the basis of the SEQ City Deal and possibly result in increased Federal investment in SEQ infrastructure.
There are also potential synergies with recent announcements by the new Lord Mayor of Brisbane (Adrian Schrinner) including the construction of 5 new green bridges across the Brisbane River and the conversion of Victoria Park Golf Course into a new public park……..or Olympic Stadium?
Courtesy of www.brisbanedevelopment.com
Government Spending Commitments Met
In FY19 it appears that the Queensland Government will have come very close to spending what it budgeted for on infrastructure projects. That may not seem unusual or something that should be celebrated but in previous years under spend on infrastructure could be measured in Millions of dollars. That meant that money budgeted to be spent was not spent – not because savings were found but because Government was unable to procure projects and deliver them quickly enough.
Glass Half Full
So whilst the grass may appear greener over the border there are still plenty of reasons to be cheerful in the Sunshine State.