Queensland Audit Office Criticizes Townsville Council's Rail Yard Project

ABC North Qld

Topic: Local Government

Friday, August 7, 2026, at 7:44 am

The North Rail Yards site in Townsville city is in bad shape.

In short:

The Queensland Audit Office found problems with how the Townsville council managed a company.

The company was made to oversee a big project to redevelop a former Queensland Rail site.

What's next?

The Townsville Mayor says the council will show how much money was given to the company.

The Queensland Audit Office criticized the Townsville City Council for its handling of a big project.

The council had to report to its ratepayers on the company's financial operations.

The company was created without the necessary approval from the Queensland treasurer.

The council said it was set up to redevelop a former Queensland Rail depot.

The Queensland government gave $35 million to transform the North Rail Yards.

The council gave the company $624,000 over two years.

The Queensland government allocated $35 million for the project.

The audit found problems with how the company was managed and reported its finances.

These problems were not fixed quickly, which delayed the audit.

The council decided to close the company, so the audit could not be finished.

The audit office told the council to prepare financial statements for the company.

A photo shows Townsville MP Adam Baillie, developer Brad Webb, and Queensland Treasurer David Janetzki.

The council has to report to its ratepayers on the company's financial operations.

The council did not get the necessary approval to create the company.

This was against the rules, according to the audit office.

The council said the problem was due to a confusion in the laws.

Company dissolved

The council was asked to close the company to get $35 million from the state.

Developer Brad Webb was chosen to clean up the contaminated rail sheds.

The council confirmed the company had a deal with Flinders St Rail.

The company chose Flinders St Rail after asking for proposals.

Brad Webb did not comment on the problems found by the audit office.

The project is now being done by the council and Flinders St Rail.

The mayor said the problems do not affect the current project.

The project is being done under a direct agreement between the council and Flinders St Rail.

The problems were with the company's structure and financial reporting.

The council now has contracts with Queensland Treasury to fund the cleanup.

The council will provide more information about the funding.

The mayor said the council wants to be transparent with the community.

The council will include more information in its financial statements.

The council is discussing with the audit office how to do this.

The council's financial statements for 2025-26 will be released later.

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