Qld Health Minister Tim Nicholls says end of CFMEU tax will save Cairns Hospital expansion project

State Health Minister Tim Nicholls has promised ending Labor’s “sweetheart deal” with the CFMEU will “save” the stalled Cairns Hospital expansion project.

Queensland Health Minister Tim Nicholls has visited the Cairns Hospital as part of his regional tour of public health facilities. Member for Barron River Bree James, Queensland Health Minister Tim Nicholls and Member for Mulgrave Terry James take a tour of the Cairns Hospital's surgical south ward. Picture: Brendan Radke

State Health Minister Tim Nicholls has promised ending Labor’s “sweetheart deal” with the CFMEU will “save” the blownout Cairns Hospital expansion project.

The Minister visited Cairns on Friday where he met with frontline workers and claimed the former government’s union deal drove up project costs.

He moved to assure residents the hospital expansion would go ahead without delays or cuts despite labelling the project “unaffordable” in its current form.

The planned $250 million project included an additional 64 beds across two wards and a 32 bed surgical centre.

Queensland Health Minister Tim Nicholls has visited the Cairns Hospital as part of his regional tour of public health facilities. Queensland Health Minister Tim Nicholls at Cairns Hospital's surgical south ward. Picture: Brendan Radke

Mr Nicholls criticised the former government’s Best Practice Industry Conditions agreements with the CFMEU, calling it a “sweetheart deal” and saying it had driven up costs on major infrastructure projects across the state.

“There have been promises made that have not been able to be kept by the Labor government, including their capital expansion program to build new hospitals and to refurbish hospitals throughout the state,” Mr Nicholls said.

“At an initial promised cost of $9.785 billion, we now know the cost to Queensland taxpayers of delivering these essential buildings is now going to be north of $16 billion,” he said.

“The numbers we have are that the cost would be unaffordable and if that price had gone forward under those circumstances, the project would not have gone ahead.”

The BPIC agreements included a number of protections for workers around temperature, rain and overtime and were scrapped in November.

Mr Nicholls did not disclose how much the government hoped to reduce costs by, but acknowledged both supply costs and other external factors contributed to the blowouts.

Queensland Health Minister Tim Nicholls has visited the Cairns Hospital as part of his regional tour of public health facilities. Member for Barron River Bree James, Queensland Health Minister Tim Nicholls and Member for Mulgrave Terry James take a tour of the Cairns Hospital's surgical south ward. Picture: Brendan Radke

“There have been increases in the cost of materials … there have been increases generally across the board,” Mr Nicholls said.

“Because of the lack of competition, trades have been kept out and the cost of that, as we know, has been around about 30 per cent more than the anticipated cost.”

Despite the Crisafulli government’s intentions to re-evaluate existing plans and designs as well as opening phase two of the project to wider competition, Mr Nicholls was adamant the projects would not be further delayed.

“I think we’ll need to look at the design, we’ll work with the designers, and we’ll work with the clinicians in particular to understand their needs

“We would expect Stage 1 …. that project to be finished by the end of 2026,” Mr Nicholls said.

“And I want to reassure the people of Cairns and the surrounding areas that Stage 2 will go ahead.”

Originally published as Qld Health Minister Tim Nicholls says end of CFMEU tax will save Cairns Hospital expansion project