Delays, cost blowouts hit key Qld health projects

The state government’s signature major health projects have been delayed by up to 2.5 years or been hit with cost blowouts.

• Editor’s view: ‘CFMEU tax’ not helping

At least a dozen of the state government’s signature major health projects have been delayed by up to 2.5 years or been hit with cost blowouts, new documents have revealed.

And a handful of other projects, including a new $1.2bn hospital in Bundaberg, are on the brink of being hit with delays as authorities attempt to manage environmental, weather or contract issues.

Analysis of documents released to the Opposition and information provided by Health Minister Shannon Fentiman’s office revealed the budget for 12 projects impacted by time or cost blowouts had risen by $51.8m to a total of $2.29bn.

Queensland Health big build “traffic light reports”, obtained by the Opposition through Right to Information laws, revealed the redevelopments of the Caboolture Hospital and Nambour General Hospital and the expansion of Redland Hospital had blown out by years.

The state government’s controversial “best practice” industrial relations rules have also added to cost and time delays according to the internal documents.

Redland Hospital

It can be revealed the budget for the Gold Coast University Secure Mental Health Rehabilitation unit increased from $105.5m to $122.7m in part because the original business case cost plan and procurement strategy were development before the implementation of Best Practice Principles.

The Cairns Mental Health Unit is now expected to open in June 2024 instead of the original deadline of late 2022 in part because the tender was delayed by nine months while the government considered whether BPP should apply.

The “traffic light report” included a total of 62 projects, though information for 30 were redacted by RTI officers due to being “government election commitments” and thus cabinet-in-confidence.

Queensland Health confirmed since the latest report from October 2023 five projects were no longer rating “amber” due to concerns about time or cost. The names of the projects were not provided.

A spokesman said no projects were ranked “red” — meaning intervention was needed.

Ms Fentiman’s office, presented with the redacted information, released a list of 23 government health build election promises — including three which had been hit with cost increases.

Nambour Hospital

These were the youth alcohol and drug rehabilitation centre in Cairns, the Rockhampton hospital new cardiac theatre and Capricorn Coast Hospital satellite renal dialysis unit with the collective budget rising from $35.4m to $58.4m.

Ms Fentiman said she had always been upfront about the pressures facing the construction sector.

“High inflation, the Covid-19 pandemic and the war in Ukraine have all contributed to cost and supply chain pressures,” she said.

“I am committed to transparency and accountability as we deliver the health big build.”

Opposition health spokeswoman Ros Bates described the hospital upgrade delays and cost blow outs as an “unfathomable failure”.

“This is more Labor chaos and crisis, they can’t be trusted to deliver on-time and on-budget,” she said.

A spokesman for Queensland Health said project changes were at times influenced by “factors outside our control, including skilled labour and material shortages, latent conditions, and impacts from weather events”.

Originally published as Delays, cost blowouts hit key Qld health projects