Queensland Treasury Corporation has warned Brisbane City Council that it is diverging from core activities and exposing itself to increased risk. The council will double capital works spending to $4billion over the next 4 years. The council will have to borrow $1.2billion doubling its debt over the next 5 years to $2.2billion.
Ratepayers could be exposed to losses from a new tollway.
Brisbane’s Lord Mayor Campbell Newman has a plan to pool ownership of all the city’s tunnels including the Clem7 that is bleeding money because of low traffic flows. The biggest risk is the Northern Link tollway. The Queensland Treasury Corporation estimates the tunnel to open in 2015 will lose $63million each year in its first five years.