Cairns Hospital Expansion Project budget blow-out fix due in Hospital Delivery Plan
A plan to “rescue” the Cairns Hospital Expansion Project is due next week as the state government claims the build was on track for a $378m blowout, and 32 less beds than initially promised.
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A a plan to “rescue” the Cairns Hospital expansion is imminent, as the state government claims the build was on track for a $378m blowout, and 32 less beds than initially promised.
But Queensland’s Health Minister Tim Nicholls said there would be no changes to the scope of the project, guaranteeing an additional 96 beds and four new surgical theatres.
The project, initially due to be finished by 2026, will likely have a new completion date and funding allocation, which Mr Nicholls said would be revealed in the hospital delivery plan released on April 23.
“Here in Cairns the budget was $250m and the budget has blown out to $628m,” Mr Nicholls said.
“They (Labor) promised that they were going to build 96 new beds, but in fact, they’re only going to deliver 64.
“They did not leave funding for the 32 additional beds in the surgery centre. They didn’t leave the plans that are necessary to go ahead and build those additional beds.”
The Cairns Hospital expansion project was set to be delivered in two tranches.
The first included 64 beds and a number of refurbishments, with the second stage operating on a separate tender to build the 32-bed surgical centre.
Mr Nicholls said part of the blowout was linked to rising construction costs, but added further detail on the $378m increase would become available in the April 23 report.
He said the report would explain how the 32-bed surgical centre would be funded, and when the project would be completed.
“It is absolutely essential that we deliver those services, that we deliver those 32 beds and those four theatres, and we remain committed to delivering the beds and the services … particularly here in Cairns.”
In August last year, then-Health Minister Shannon Fentiman was asked if she had been made aware of a cost blowout to the expansion program, which she refused to rule out, while applauding her government for taking on additional costs.
“So I understand we’re working through that,” she said at the time.
“I would make really clear is we do not restrict the services that we want to offer Queenslanders when costs increase, so we make a decision as the government to take on more cost if the cost has gone up, rather than reduced scope of projects.”
In her response to Mr Nicholls’ review, Ms Fentiman questioned why the Health Minister hadn’t yet released the report, claiming “he’s had it for over a month”.
“Well we know why – because he’s going to cut the scope of hospital projects, there’ll be less beds, less services and I bet you they will not be delivered on time – he’s going to delay these projects into the never.”
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