Qld construction delays, huge cost blowouts worthwhile, says Premier

Delays and multimillion-dollar cost blowouts on big Queensland construction projects are worthwhile to maintain the government’s status as an “industry-leading” employer, says the Premier.

Delays and multimillion-dollar cost blowouts on major Queensland construction projects are worthwhile to maintain the government’s status as an industry-leading employer, Premier Steven Miles has declared.

Analysis of documents revealed the budget for 12 signature major health projects affected by time or cost blowouts had risen by $51.8m to a total of $2.29bn.

Delays and cost blowouts on major Queensland construction projects are worthwhile to maintain the government’s status as an “industry-leading” employer, says Premier Steven Miles.

It was also revealed the government’s controversial “best practice” industrial relations rules – dubbed by industry insiders as the “CFMEU tax” – had contributed to the cost and time delays.

Mr Miles defended the best-practice principles and said they provided opportunities in the construction sector.

“They’re how we ensure that tradies and other workers on government projects are getting paid appropriately, that their conditions are being met, but also other conditions like traineeships and apprenticeships – the number of women on site, the number of First Nations people on site – so we really want government projects to be industry-leading,” he said.

“Sure, sometimes some people will focus on the cost of those, but they deliver great value for our projects, and that’s why we have them.

Health Minister Shannon Fentiman. Picture: Steve Pohlner

Opposition health spokeswoman Ros Bates. Picture: Tertius Pickard

“They make sure that they’re good-quality jobs on our projects and I think it’s reasonable to say that government projects should lead the industry.”

A 2023 report by Queensland Major Contractors Association, Construction Skills Queensland and Oxford Economic warned the BPIC policy would see construction industry wages soar by as much as 30 per cent over five years while productivity would simultaneously plummet.

Health Minister Shannon Fentiman played down the delay to Queensland Health’s infrastructure program, blaming a range of issues.

“There’s a whole range of them – sourcing land has been another one of them, also making sure that we are not reducing the scope of projects,” she said.

“We make no apologies for making sure that we don’t reduce the amount of beds and services and instead we be upfront with Queenslanders when project costs escalate.”

Opposition health spokeswoman Ros Bates said the government had failed to deliver on its promises.

“What’s even worse is they’d prefer to cover-up their failures instead coming clean on what it means for Queenslanders suffering due to Labor’s health crisis,” she said.