Ministers for the Department of Infrastructure, Regional Development and Cities The Hon Michael McCormack MP Deputy Prime MinisterMinister for Infrastructure, Transport and Regional Development Senator the Hon Bridget McKenzie Minister for Regional ServicesMinister for SportMinister for Local Government and Decentralisation The Hon Alan Tudge MP Minister for Cities, Urban Infrastructure and Population The Hon Sussan Ley MP Assistant Minister for Regional Development and Territories The Hon Andrew Broad MP Assistant Minister to the Deputy Prime Minister The Hon Scott Buchholz MP Assistant Minister for Roads and Transport The Hon Barnaby Joyce MPFormer Deputy Prime MinisterFormer Minister for Infrastructure and Transport The Hon Dr John McVeigh MPFormer Minister for Regional Development, Territories and Local Government The Hon Keith Pitt MPFormer Assistant Minister to the Deputy Prime Minister The Hon Damian Drum MPFormer Assistant Minister to the Deputy Prime Minister Senator the Hon Fiona Nash Former Minister for Regional DevelopmentFormer Minister for Local Government and Territories The Hon Darren Chester MP Former Minister for Infrastructure and TransportFormer A/g Minister for Regional DevelopmentFormer A/g Minister for Local Government and Territories The Hon Warren Truss MP Former Deputy Prime Minister Former Minister for Infrastructure and Regional Development The Hon Paul Fletcher MP Former Minister for Urban Infrastructure and Cities The Hon Jamie Briggs MP Former Assistant Minister for Infrastructure and Regional Development

TEARC business case to be considered by the Australian Government

Media Release

MM037/2018

19 April 2018

Joint release with:

Senator the Hon Matt Canavan

Minister for Resources and Northern Australia
Senator for Queensland

The Hon Paul Fletcher MP

Minister for Urban Infrastructure and Cities

The Turnbull Government understands that following the release of the business case for the Townsville Eastern Access Rail Corridor (TEARC) today, the Queensland Government has concluded that the costs of the project would significantly outweigh the benefits for the community.

It is disappointing that the business case led by the Queensland Government reaches this conclusion—and we expect that the Townsville community will be disappointed by this conclusion as well.

Federal Minister for Infrastructure and Transport Michael McCormack said as a first step, the Australian Government will thoroughly review the business case, including seeking independent advice from Infrastructure Australia.

“We want to leave no stone unturned in determining if the TEARC project can be viable,” Mr McCormack said.

“Our commitment is to invest more than $250 million in Townsville under the Townsville City Deal, and we stand by that commitment.”

Minister for Resources and Northern Australia Matthew Canavan said the Australian Government was committed to supporting Townsville's economic development.

“Through the work of the Northern Australia Infrastructure Facility, through our consultations on the Townsville City Deal, and through our other work, the Turnbull Government has a strong understanding of the challenges and opportunities in Townsville—and the economic objectives underpinning the investment commitments we have made,” Senator Canavan said.

“We will continue to work to maximise the benefit of our planned investment to support Townsville's growth and economic development.”

Federal Minister for Urban Infrastructure and Cities Paul Fletcher said it was essential that governments identify a pipeline of potential projects for investment—and do the legwork to ensure they stack-up.

“The Turnbull Government received a copy of the full business case for the Port Channel Widening from the Queensland Government yesterday evening,” Mr Fletcher said.

“We will now consider closely what we have received, including the opportunity for long term concessional financing from NAIF.”

For more information on the Townsville City Deal visit https://cities.infrastructure.gov.au/townsville-city-deal.