Cairns loses up to $100 million in funding after dredging project is scrapped Cairns will lose $40 million in previously budgeted state funding and an additional $60 million in promised funds after the Labor Government confirmed it had withdrawn the money previously allocated for the dredging of Trinity Inlet.
Minister for State Development Dr Anthony Lynham confirmed on Friday that the Labor Government had scrapped the funding.
Ports North had proposed to expand the Port of Cairns channel in Trinity Inlet to improve access for larger ships, including mega-class cruise ships.
The former LNP Government had budgeted initial funding of $40 million, with former Premier Campbell Newman publicly committing to an extra $60 million in funding in light of updated figures last year that showed the project would cost up to $100 million.
With the project now scrapped, the loss of state funding comes on top of expected losses in future economic boosts to the city.
The draft EIS highlights the "urgent" need to upgrade the port to accommodate mega cruise ships.
The report found that Cairns will "inevitably decline in a very few years as a premier world cruise destination thereby causing serious consequences for tourism not only in Cairns but in Far North Queensland and inevitably Townsville, the Whitsundays and eventually Brisbane."
But commenting on the release of the draft Environmental Impact Statement on Friday, Dr Lynham said: “When people look at the EIS they will see why the only option is to discontinue the project.
"That’s why the Government, in line with its election commitment, has decided to withdraw the money allocated by the Newman Government."
The allocated funding pledged for Cairns is the latest cost saving measure aimed at salvaging the delayed State Budget, with Treasurer Curtis Pitt struggling to find savings amid falling revenue and a desperate need to fund infrastructure, such as new schools.
In 2012, Mr Pitt and then councillor Rob Pyne, now the Member for Cairns, led strong campaigns condemning the loss of millions of dollars from Cairns when the Cairns Entertainment Project was scrapped.
But they have been silent on the Labor Government's decision to scrap $100 million in funding for Cairns as part of the the Trinity Inlet dredging project, leaving the announcement the city had lost the money to their colleague Dr Lynham.
Both Mr Pitt and Mr Pyne have refused to answer questions about the funding submitted by Cairns Now.
A new group called "Friends of the Port of Cairns" has been established in a bid to rally support for the project to expand the Port.
In response to the decision by the Labor Government on Friday, the group questioned the validity of the public submission process given the government had already made up its mind to scrap project.
"The QLD Labor Government has given until the 1st of June for submissions, but we're being led to believe that we ought not even bother responding because the Treasurer, Minister for the Great Barrier Reef and Minister for State Development have withdrawn any support to find a solution," the group posted on its Facebook page.
"Was this EIS set up by Labor & Green civil servants to fail? Is the cost to develop East Trinity really $365 million?"
Mr Nicholls described the loss of funding for Cairns as a "disgrace".
"Cairns already has one of the lowest employment rates in Queensland, and Labor has stopped up to 100 jobs from being created," Mr Nicholls said.
"They have crippled the tourism industry in Cairns by scrapping the proposed Cairns Shipping Development."
