INFRASTRUCTURE projects across Queensland will remain in limbo with the Palaszczuk Government demanding nothing but cold hard cash from its Canberra counterpart.

The fledgling Labor administration – which is yet to finalise its own infrastructure plan – yesterday rejected billions of dollars in infrastructure funding on offer from the Federal Government through asset recycling and low-interest loans.

The decision leaves the Palaszczuk Government without help for numerous projects, including Brisbane’s Cross River Rail, the Gold Coast light rail extension and the Sunshine Coast rail duplication, just two months before its own budget.

BUDGET: Pitt calls for ‘no surprises’

While the state has rejected the $5 billion federal asset recycling fund, New South Wales and the ACT are expected to generate more than $15 billion of infrastructure activity from their involvement.

The Palaszczuk Government has also scorned a new program of low-interest loans for economic infrastructure in the north of the state, which was unveiled in Tuesday’s Budget.

Key projects the state sought federal Budget funding for were public transport related, which the Abbott Government will not fund. Premier Annastacia Palaszczuk yesterday cast doubt on whether the Gold Coast light rail extension and the new 25,000 capacity Townsville football stadium would proceed.

“We need more infrastructure projects here so we can generate jobs, local jobs,’’ Ms Palaszczuk said.

media_camera Premier Annastacia Palaszczuk cast doubt on whether the Gold Coast light rail extension could proceed without federal funding.

However, Treasurer Curtis Pitt said Queensland would not be held to ransom for federal funds.

“Sadly the Australian Government intends on withholding federal infrastructure funding from Queensland, unless we agree to sell state assets,” he said.

“Or in the case of northern Australia, unless we agree to concessional loans.

“Both are $5 billion funding pools but it seems neither is actually going to be offering hard cash to Queensland.”

Opposition Leader Lawrence Springborg said the Labor Government was crying “crocodile tears” about the Federal Budget because they did not have a plan of their own.

“The Palaszczuk-Gordon Government’s attempt to use the federal Budget as an excuse for not having a plan of their own will no longer wash with Queenslanders,” he said.

Infrastructure Partnerships Australia chief executive Brendan Lyon said the Federal Government was doing the heavy lifting on infrastructure and urged state governments to recycle assets to stimulate the economy.

“There is a strong case for Canberra to make more money available for state infrastructure in the immediate term, with those grants linked to specific reforms like state asset privatisations,’’ he said.