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Qld’s signature satellite hospitals plan blows out by $110m

The Palaszczuk government’s signature satellite hospitals plan has blown out by a substantial $110m from the price tag given to voters at the 2020 state election.

Satellite hospital slammed as white elephant

The Palaszczuk government’s signature satellite hospitals plan has blown out by a substantial $110m from the price tag Labor took to voters at the 2020 state election.

Queensland Health has revised the construction costs of the seven health facilities to $376.9m in a 42.2 per cent jump from the $265m the government had originally promised they would cost.

And Health Minister Yvette D’Ath has also confirmed two of the satellite hospitals won’t even open until 2024 – despite the government previously promising they would open by May 2023.

In response to a parliamentary question on notice, Ms D’Ath confirmed only five of the seven facilities would reach “practical completion” and open in 2023.

“It is expected that the first satellite hospital will be operational by August 2023,” she said.

“Cultural heritage negotiations, wet weather, site contamination and supply-chain constraints have moved the forecast operational opening of two facilities (Eight Mile Plains and Bribie Island) into 2024.”

Health Minister Yvette D'Ath at the sod turning of the Kallangur Satellite Hospital in September. Picture: Liam Kidston
Health Minister Yvette D'Ath at the sod turning of the Kallangur Satellite Hospital in September. Picture: Liam Kidston

Premier Annastacia Palaszczuk announced the satellite hospitals pledge on Bribie Island during the 2020 state election campaign, where Labor reclaimed the seat of Pumicestone from the LNP.

Ms D’Ath said the increased costs were due to a range of reasons, including expansion of the original scope and design, a location change for one of the facilities, and weather conditions.

Opposition health spokeswoman Ros Bates suggested Queenslanders were “paying the price” for the blowout.

“It was only six months ago the state government was defending a $15m blowout on these projects. It’s now $111.9m,” Ms Bates said.

A government spokesman last night defended the blowouts, saying they were “no different to mum and dad renovators”.

“We’re paying more for materials and labour like everyone else,” he said.

“But instead of putting on an extension or new back deck, we’re building big projects like hospitals, which will benefit all Queenslanders for decades to come.

“Planning for our growing population comes at a cost but the cost of doing nothing would be significantly more.”

The satellite hospitals are set to be built in Bribie Island, Pine Rivers, Eight Mile Plains, Caboolture, the Gold Coast, Ipswich, and Redland.

Other Queensland Health capital projects have also blown out by millions of dollars, including the Gold Coast Secure Mental Health Rehabilitation Unit which will now cost $122.7m instead of $105.5m.

Original URL: https://www.couriermail.com.au/news/queensland/qld-politics/qlds-signature-satellite-hospitals-plan-blows-out-by-110m/news-story/2a33dd15278e32e72dbd7016ed69adb4