Critics question risk of ‘Airtrain 2’ under Wave fast-track law tweaks

Queensland’s state government will waive contract term limits for the rapid bus portion of the Sunshine Coast Wave, in a move critics warn could lock taxpayers into a new privatised Airtrain-style deal.

Tucked into a largely unrelated bill introduced last parliamentary sitting, the government has floated changes to public transport project procurement laws to fast-track delivery of the watered-down project.

The Labor Opposition and Greens have questioned the long-term repercussions of any private sector operation of the service, but the Crisafulli LNP have insisted 50¢ fares will continue to feature on the network.

The multibillion-dollar project was promised to have included passenger rail from Beerwah to Maroochydore. Brisbane Metro-style buses will now complete the final leg from Kawana – and on to the airport.

Contractors for most of the first two rail stages have been announced or shortlisted. Stage one alone – expanding passenger rail from Beerwah to Caloundra – has a $5.5 billion state-federal investment, but could cost up to $7 billion.

The privately operated Airtrain service has been subject to increasing scrutiny for its separate, more expensive fare structure. Transport Minister Brent Mickelberg has spoken openly about considering private Wave funding deals.

Under existing laws, the stage-three bus portion would need to be delivered across two contracts: one to plan, design and deliver the infrastructure and vehicle fleet, and the other to operate the service going forward.

Changes proposed in the government bill will instead exempt stage three from this, allowing a proposed “integrated model” in which one contract is awarded for both delivery and operation.

Rules dictating a maximum seven-year contract, with the option for only one single-term renewal, will also be waived for Wave buses. The department would also be allowed to invite only specific tenderers to apply.

Carve-outs will also deny compensation for existing operators in the area excluded from such a limited invitation tender, the “perception” of which exists under current laws. Procurement is set to begin in September.

Explanatory notes and a departmental brief say the shift to a single contract will “increase the operator’s influence and allow for innovation in design, construction, and operations, with expected whole-of-life benefits”.

“The existing service contract procurement framework under the Act includes requirements that may impede the delivery of timely, attractive and competitive tendering and contract finalisation.”

Despite the ability to invite only specific groups to apply, both the explanatory notes and departmental officials appearing before a committee examining the bill on Wednesday say an open tender process will take place.

Labor MPs used the committee hearing to question whether the ability to invite specific applications might be used to hand work to a client of Mickelberg’s lobbyist brother-in-law – which the department rejected.

(Both Mickelberg and his brother-in-law, former Tasmanian Liberal Party director Pete Coulson, have denied any inappropriate lobbying took place, and this masthead is not suggesting otherwise.)

The Labor Opposition has previously claimed there was a “cloud” over the project caused by Mickelberg’s familiar links, Deputy Premier Jarrod Bleijie’s declared conflict of interest, and the appointment of consultants to key roles.

One existing bus operator in the region has raised concerns about the proposed changes in early consultation, explanatory notes state. Comment has been sought from the state’s bus and coach operator peak body, the Queensland Bus Industry Council.

Opposition transport spokesperson Bart Mellish said the government needed to be open about what would be a multibillion deal it was “trying to sneak through for the bus network in Maroochydore”.

“The LNP has a history of locking Queenslanders into dud deals and we can’t afford another Airtrain fiasco,” he said.

Maiwar Greens MP Michael Berkman also said it appeared the government was “lining up Airtrain mark 2”, describing any long-term privatised deal as “shockingly irresponsible”.

The government has noted most existing urban bus services across the state are delivered by private operators contracted by Translink, on which all services – except Airtrain – operate under the 50¢ fare structure.

“While Labor only funded 50¢ fares for a few months as an election-eve sweetener … the Crisafulli government has locked the LNP’s permanent 50¢ fares in law for all modes of public transport,” acting transport minister Sam O’Connor said.

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