Cash grab threatens Rapid Transit

Extract of story by Geoff Chambers in the Gold Coast Bulletin Friday 6 November 2009

A PAPERWORK mix-up involving federal and state government bureaucrats has threatened the future of the controversial $1.7 billion Gold Coast Rapid Transit system.

The Bulletin has learnt that federal government budget documents were 'misinterpreted' by senior transport bureaucrats.

Premier Anna Bligh and Prime Minister Kevin Rudd, who have promoted state-federal unity during their reigns, remained at loggerheads last night after the Federal Government demanded a cash return on its $365 million investment in the project.

Mayor Ron Clarke has demanded senior transport bureaucrats 'pulled their heads out of the sand'.

Cr Clarke said if the current dispute was not finalised, the light rail system could be delayed until 2016.

"The feds can't have it both ways," said Cr Clarke.

"They've played these games in the past, most recently with the AFL stadium."

The sticking point is linked to a provision made by the Federal Government for a 'possible contribution in relation to the rapid transit project'.

Treasurer Wayne Swan made this point clear in the budget papers.

"The Government's contribution will be made subject to negotiations with the project proponents and the establishment of an appropriate equity vehicle."

Queensland Transport Minister Rachel Nolan last night attempted to hose down the dispute but conceded that a deal had not been finalised during meetings in Sydney over the past few days.

"There is no dispute between us and the Federal Government," said Ms Nolan.

"They want their investment to be equity and we are working with them.

"This is the first time the Federal Government has done this, so of course there is lots of detail to work through. It's on track."

Gold Coast stakeholders have slammed the attempt by the Federal Government to demand ongoing revenue from the project.

State Opposition leader and Surfers Paradise MP John-Paul Langbroek, a rapid transit sceptic, said the 'bureaucratic wrangling' had gone too far.

"Ms Bligh and Mr Rudd have to personally intervene. They promised when they were elected that they would be good friends and now they have let this situation turn into a game of bureaucratic buck passing," said Mr Langbroek.

"Every day that's wasted is another day where important jobs fail to come on-line."

The rapid transit project, which was supported at The Bulletin's Rescue Patrol summit, was initially led by the Gold Coast City Council.