As we enter 2025, attention is on Queensland’s transport and infrastructure needs, CCF QLD CEO Damian Long says
It has been a soft start to the new year as poor weather and lagging holidays seem to have delayed the expected activity in civil construction. However, I get the feeling there is reason to be mildly optimistic about the coming year.
The newly elected Crisafulli government has hit the ground running and fulfilled certain core election promises when they passed changes to legislation through parliament just prior to Christmas. The speed and matter-of-fact approach to the first couple of months has given the industry confidence that the barriers and difficulties it faces can be navigated.
A great sign of barrier removal was the pausing of Best Practice Industry Conditions (BPIC) until the newly formed Productivity Commission can hold a review into the building and construction industry.
The Crisafulli government initiated a 100-day review into the state’s transport and infrastructure needs with a focus on the needs of the 2032 Olympic and Paralympic Games. It is being conducted by The Games Independent Infrastructure and Coordination Authority. The Authority is currently assessing submissions and preparing a report, which is to be delivered to the Queensland government on March 8, 2025.
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The finalisation of the report will finally give industry a clear view of what the program will look like. Whilst the headline is about the Olympic Games, we cannot forget that the infrastructure is needed to support the population growth of Queensland. The Olympic Games is a tenant of Queensland only for a short time. The infrastructure must have a vision beyond the Olympics.
The federal government has pledged $7.2 billion for Bruce Highway upgrades. It also changed its 50/50 funding requirements back to 80/20. This means the Queensland government will provide $1.8 billion, for a total of $9 billion.
The funding aims to address the highway’s safety concerns. I expect the funding will be allocated to the sections of the Bruce Highway with the lowest safety rating.
Opposition Leader Peter Dutton has supported the funding model and committed to matching the $7.2 billion if elected. Dutton has also proposed a ban on the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) from participating in future Bruce Highway projects. This will be difficult in practice given current Commonwealth Laws and various procurement policies.
CCF QLD welcomes the bipartisan funding commitment. However, there are questions as to whether the announcements are in addition to the current commitments or a substitution of the current commitments. There are also questions of the timing and duration of the funding. Queensland Premier David Crisafulli has sought clarification from the federal government. This happened after Finance Minister Katy Gallagher indicated that the funds might not be available until four years from now, despite earlier statements suggesting availability within the year.
We will have a clearer picture once the federal government hands down its budget. The budget is due March 25, 2025. The timing of the budget is problematic. Whilst it has been brought forward due to the last possible date that the federal election can be held (May 24, 2025) it could still be handed down after the election – should the election be called earlier.
This will make it difficult for the Queensland government to factor any federal funding into its budget, if the timing of the funding is not clarified with certainty prior to the election.
The promised funding provides some underpinning of certainty for ongoing projects in regional Queensland. The programming of these works needs to be at a size that local companies can compete for. The program needs to be planned and designed well, with adequate assessment and management of risk.
The Premier has committed to Queenslanders that there will be no more blow outs on capital works projects, and implementing these initiatives will deliver on this commitment.