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RoadTek reform: value for taxpayer dollars

Posted : Wednesday, June 20, 2012

The model for Queensland's major provider of transport and infrastructure solutions, RoadTek, discourages innovation and is not cost effective, Queensland Minister for Transport and Main Roads, Scott Emerson has told a CEDA audience in Brisbane.

"One of the first major changes in the transport and main roads portfolio will be to reform the delivery model of RoadTek to remove it from unfairly tendering against private companies in mature markets, such as south east Queensland," he said.

"This will address the poor value for money and lack of innovation being delivered by the public sector to ensure we deliver...better transport infrastructure for every taxpayer dollar the government invests."

RoadTek, a commercial business within Department of Transport and Main Roads, delivered around $310m worth of projects so far this financial year in south east Queensland, he said.

"In future, these projects will be put out to (tender to) the most innovative companies and councils to deliver in the most cost effective way, to deliver the best value for taxpayer dollars," he said.

"RoadTek will move towards a model based on delivering internal capabilities to the regions which will allow them to focus on boosting their expertise to deliver projects where the private sector cannot.

"And of course RoadTek will continue to exist; providing immediate emergency response capability should it be required."

Mr Emerson said this reform will help deliver taxpayer value for money, support the State's economy and assist in delivering four per cent unemployment for the State within six years.

On other transport challenges Mr Emerson said he wants to restore confidence in public transport in three ways:

• Improve affordability - including by halving planned fare increases;
• Increase network reliability - a full audit report will be received at the end of June; and
• Increase frequency - including 2000 additional weekly bus services as of the 11 June.

On cross over rail projects Mr Emerson said if the numbers stack up and it's affordable then they will progress. However, if it's unaffordable and therefore undeliverable, they would look at alternatives.

On the Bruce Highway, which is a national road, he said the Queensland Government made an election promise to fund an extra $1 billion over 10 years on the proviso that the Federal Government also increases their investment.

Mr Emerson said that due to the State's financial situation, reviews and audits are being undertaken and the State Government will first deliver on election promised projects and then others it can afford.

The next event in the CEDA Queensland Transport Infrastructure series, which will focus on new approaches to meet increasing demand, is on Wednesday 29 August. For more information click here