Federal MP Bob Katter has demanded an explanation from the Townsville City Council for their funding contribution to Adani, questioning the contribution from ratepayers.

Mr Katter said he will send a letter to Townsville City Council questioning why “one of the wealthiest people on earth” requires an additional $18.5 million from local ratepayers.

“I did not believe the news item when I heard it, that rate payers of Townsville were going to be building an airport 200 to 300km away for a foreign corporation,” Mr Katter said.

“If the foreign corporation needs $18.5m, then I think we can safely assume the project is in real trouble.

“Which brings us to my curiosity as to why a city, without a proper water supply, is using ratepayers money to give to one of the wealthiest people on earth.”

Mr Katter’s hard line of questioning was sparked by announcements from both Townsville City Council and Rockhampton Regional Council to jointly fund the hotly debated Adani airstrip in the Galilee Basin, despite it being located hundreds of kilometres from both cities.

“We have written a letter to the Council, asking specifically whether they have secured any agreement in writing with respect to jobs,” Mr Katter said.

“Have they asked the Adani Corporation how many jobs they will control? How many will be controlled by contractors?

“Have they had a legal opinion of what their chances would be enforcing a contract against one of the bigger Corporations on earth? Why does Mr Adani need $18 million off the Townsville City Council for a project when he is purportedly outlaying $6000m?

“Townsville State, Federal and Council, with the exception of Member for Hinchinbrook Nick Dametto and myself, is totally represented by the ALP.

“We, as the voice of opposition, think any responsible Council should provide us with answers to these questions, we’ll await their reply.”

Mr Katter also questioned why a Government-owned railway line into the Galilee Basin, potentially opening up to more than 20 other mining companies, was not being considered a transport option.

“I want to know why so called socialist State Government, and so called socialist State Members and Councillors have not made the slightest effort to get the Government to build and own a railway line,” he said.

“If the people of Queensland build a railway, the State Government will get its money back within 3 or 4 years.”

A Townsville City Council spokesman said Council needed to act to ensure up to 900 jobs were secured for the city.

“Townsville would have lost those jobs to Rockhampton if Council didn’t commit to investing in the Galilee Basin airstrip,” the spokesman said.

“Council would never stand by and watch 900 jobs go down the highway to Rockhampton.“Council acted decisively and secured a deal to ensure up to 900 well-paid and ongoing jobs for Townsville locals, each year for the 30-year life of the deal.”

The council spokesman said up to 1200 jobs for Townsville locals would be created when construction starts on the airstrip.

“Townsville will benefit from an extra $90 million annual boost to the economy for three decades," he said.

“It also provides Council a new revenue stream of more than $1 million annually through drug and alcohol testing of the mine’s Townsville-based workers.”

The spokesman said council had paid out no money yet and the deal was structured to guarantee the jobs stayed in Townsville.

“There are strong protections in the deal that ensure these jobs will go to Townsville locals,” the spokesman said.

“The jobs are guaranteed to stay in Townsville for the life of the mine.“Council has not spent any money yet, and no money will be spent until finance is secured for the mine.”