■ I I L-A1 I I I NEWS Townsville MP promises to spend $i95m in his electorate Townsville has gained a windfall $195 million for major projects in the wash-up of a Federal-State Government stoush over GST payments. TONY RAGGATT, Townsville Bulletin § Subscriber only | August 4, 2020 12:00am O Member for Herbert Phillip Thompson says the $195 million in federal funding that will no longer be needed for the Haughton pipeline stage two project will be spent on other projects in Townsville. Picture: Alix Sweeney Townsville has gained a windfall $195111 for major projects in the wash-up of a federal-state government stoush over GST payments. It comes as federal Member for Herbert Phillip Thompson promised his government would retain the money — allocated for a water pipeline the state will now fund — in Townsville. This is despite Mr Thompson making apparently contradictory statements yesterday, at first saying the money would stay in Townsville and then saying he would fight to ensure the money stayed here. MORE NEWS>>> • Watch our new School Footy Show featuring all the Langer and Payne cup action • Four children have been injured in a two-vehicle crash in Kirwan • JCU opens $2ook eSports facility in Townsville Mr Thompson told ABC Radio yesterday: “(The money) stays in Townsville, stays in Townsville ... the $195 million will be allocated to Townsville projects.” In an email to constituents yesterday afternoon, Mr Thompson said: “I would like to assure every single Townsville resident that I have spoken to the Prime Minister and will be fighting to ensure the money allocated for stage two of the Haughton pipeline stays in our region.” When asked about the email by the Townsville Bulletin, Mr Thompson stood by his earlier remarks. “I made those comments on ABC and I stand by them,” Mr Thompson said. O Phillip Thompson 0AM MP, with his daughters Emery 1wk old and Astin 2, will join him at dawn on the driveway for Anzac Day 2020. Picture; Alix Sweeney The state government has also confirmed it will now provide $i95m direct to the Townsville City Council to complete Haughton pipeline stage two — the continuation of a water supply pipeline to connect Ross River Dam with Burdekin River at Clare. State Treasurer Cameron Dick came into town with all guns blazing. “We are trying to stop the rip-off of Townsville by Canberra,” Mr Dick said. “It’s just not good enough for Queensland to continue to receive funding from Canberra and to have that money clawed back through lower GST payments to Queensland. “The fake LNP federal water policy is no good for Townsville.” Coalition MPs have denied there is a GST issue or that the state stands to lose $15601 on future GST allocations by taking the federal cash, as claimed by Mr Dick. Mr Thompson said the Commonwealth Grants Commission, which calculates GST allocations, had told him there was no way the $i56m figure could be accurately calculated. O Treasurer Cameron Dick speaks to the media, Thursday. July 23, 2020 - Picture: Richard Walker “This project would not affect GST this year, next year or the year after. It’s only during an election cycle that they have made it an issue,” Mr Thompson said. Federal Member for Dawson George Christensen said if the state’s GST calculation was right — and he did not believe it was — it could mean the state government was intending to use the pipeline as a “massive revenue-raising project and there will be hikes in water charges”. A project’s revenue is one of the criteria used to calculate GST allocations. “I want the state government to come out and say they will not seek to make any undue rate of return from this pipeline beyond the normal cost of water,” Mr Christensen said. “Even if they are right — and I don’t think they are right — they are still knocking back $40 million. That doesn’t make sense,” The difference of $39m is the amount Queensland would effectively gain if the state’s calculation is correct. O Dawson MP George Christensen. Picture: Melanie Whiting Mr Dick maintained it was, adding: “We are sick of it and we are not going to take it any more. Over the last five years the federal government has put more than $13 billion, $13 billion in grants, to every other state in Australia and none of that $13 billion was taken into account in determining GST payments. There’s only one state that has not benefited from a quarantine and that is Queensland.” On claims of revenue raising, Mr Dick said the state would not earn any return from the pipeline because it would be built, owned and operated by the Townsville council. Mayor Jenny Hill said the claim of revenue raising was a “red herring”. “Mr Christensen doesn’t seem to realise we all have to play within rules set down by the federal government. No one can do price gouging. He should know that because his government sets down the rules,” Cr Hill said..