State Development Minister Anthony Lynham has blamed local councils for Labor’s failure to deliver more than $65 million in job creating projects in the past year.
Shadow State Development Minister Deb Frecklington said Labor’s Building Our Regions had a $70 million budget allocation last year, but only $406,000 of that budget was actually spent.
“When asked why over $69 million of funding for the program had been held back from regional Queenslanders, Mr Lynham stumbled before pointing the blame at local councils for slow application times*,” Ms Frecklington said.
“The State Development Minister had the hide to blame the Building Our Regions delays on local Councils not submitting their expressions of interest on time.
“In true Labor form, Anthony Lynham is blaming everyone but himself for this disastrous program.
“The Minister needs to step up and take responsibility for short-changing Queensland’s regions.”
Ms Frecklington said Anthony Lynham sat in Budget estimates last year** and proudly declared funding for Labor’s Building Our Regions program would be brought forward a year.
“He now needs to explain his failure to deliver job creating projects for regional Queensland,” she said.
“Despite the 99 per cent underspend, the Minister not only argued the program was going according to plan, but he said it was actually progressing better than he had initially anticipated.
“The reality is the LNP’s Royalties for Regions program, which Labor scrapped, delivered more last year than Labor’s own Building our Regions program.
“The LNP isn’t even in government and our programs are delivering more for regional Queensland.
“Imagine the jobs that could be created if this do-nothing Labor government stopped sitting on his hands, and started investing in regional projects.”
*TRANSCRIPT of Minister Anthony Lynham, Budget Estimates, 20 July 2016 (E&OE)
When asked why there’s a 99% underspend on the Building Our Regions program:
Deb Frecklington: Minister, if I could now turn to Building our Regions. I refer you to page 111 on Budget paper 3 that shows only $406,000 was spent under your program and I ask how many jobs did this 99 per cent underspend cost Queenslanders?
Anthony Lynham: I thank the Member for Nanango for her question. It’s not unusual that these projects do start with this slow progression because-
DF: 99 per cent Minister.
AL: I think your Royalties for the Regions program there was nothing in the first year- a zero dollar figure in the first year in 2012/13.
DF: Minister you are the government now.
AL: Ahh, um- I just.
DF: I’m just reminding the Minister…it is his second budget, that’s right Mr Cripps.
AL: Mr Chair, I can happily talk generally in that any grants program, especially one of this nature, and especially with the experience of those opposite will realise that these take time. Time for councils prepared plans, they take time for milestones to be released. These things are budgeted for. But the time for the money rollout will follow those milestones being released by council. We also achieve efficiencies in these programs as well. We’ve identified in one round $15 million worth of efficiency – we’ve been able to progress back to a further round of building our regions.
Lynham explaining the process and how councils make an application:
Anthony Lynham: To manage it properly, a number of steps and guidelines are established and councils have to make an application. These applications have to be assessed based on a clear set of criteria and advice sought from the relevant agencies. Cost for the analysis must be undertaken and due diligence on projects also must be undertaken.
Once a project is selected, an agreement must be developed, and project milestones and special conditions agreed to.
After an agreement is signed by both parties, the council has to undertake a detailed design and tender process and select a successful contractor. Obtaining the necessary approvals must be undertaken before ground can be broken on site.
Anthony Lynham saying the program is going better than anticipated:
Anthony Lynham: A low spend in the first year of a new grants program is not uncommon. While the spend may appear slow, I can assure you that the project is rolling out according to plan, in fact better than originally anticipated.
**HANSARD from Minister Anthony Lynham, Budget Estimates, 15 August, 2015:
“I am pleased to advise the committee that the government is bringing forward, as I said before, the Building our Regions program from 2016-17 to 2015-16. This will allow the government to fast-track its jobs agenda in regional Queensland…”
