Labor’s $300,000-a-day bill for empty Wellcamp quarantine facility
The Palaszczuk government agreed to pay $108m – or $300,000 a day – to a medical company to provide health services at its near-empty Wellcamp facility.
The Palaszczuk government agreed to pay $108m – or $300,000 a day – to a medical company to provide health services at its near-empty Wellcamp quarantine facility.
There was no open tender process undertaken before Aspen Medical was awarded the year-long contract to deliver medical treatment at the quarantine facility, which became obsolete just weeks after opening.
The 1000-bed centre has housed only about 700 people since it opened in February – an average of 30 guests each week – but those numbers have dwindled since mandatory quarantine was scrapped for unvaccinated international arrivals in April.
The Palaszczuk government had repeatedly refused to detail the cost of Aspen’s services, citing “commercial-in-confidence”, and has faced criticism by rival healthcare providers not given a chance to bid on the contract.
New details of the deal, obtained by The Australian, reveal Queensland Health in late January agreed to pay $108m for the “provision of health services” at Wellcamp for 12 months.
A Queensland Health spokesman said the contract provided for a cap of up to $108m, but could not say how much was actually being spent because of commercial reasons.
“Payment is made monthly based on the level of services actually delivered in the preceding month,” he said.
“The contract does not extend to the provision of services within hotel quarantine facilities.”
A government insider believes Aspen has been paid $16m for providing services at Wellcamp since the centre opened, an average of about $700,000 a week.
Canberra-based Aspen Medical is a client of Labor-aligned lobbying firm Anacta Strategies, which secured eight meetings with the government on behalf of the company in the month before the contract was awarded.
Queensland’s lobbyist register shows Anacta had 20 meetings with the government in the past year, including senior staffers of Premier Annastacia Palaszczuk, her deputy Steven Miles and Health Minister Yvette D’Ath.
Details of the Wellcamp project have been shrouded in secrecy, with the Palaszczuk government repeatedly refusing to disclose the full cost to state taxpayers of the centre.
Despite being privately owned by the Toowoomba-based Wagner Group, which owns the adjacent airport, the state government covered $48.8m to build the centre last year.
There was no tender process for construction of the site and the Queensland government is now locked into a 12-month lease with Wagner, due to expire in February 2023. The state has also refused to reveal leasing costs.
Wagner Corporation boss John Wagner was appointed to the Brisbane 2032 Olympics Legacy Committee on Thursday by Ms Palaszczuk’s cabinet. Liberal National Party leader David Crisafulli said he had “no issue” with the appointment.
One of Ms Palaszczuk’s top political advisers, Denise Spinks, took a senior job with Anacta just two months before Aspen was awarded the Wellcamp contract.
Ms Spinks, Ms Palaszczuk’s deputy chief of staff until September last year, was in charge of the cabinet agenda and privy to confidential documents and discussions when the controversial quarantine camp was approved.
Anacta Strategies is run by two Labor lobbyists – Evan Moorhead and David Nelson – who have since been banned from doing business with the Palaszczuk government until 2024.
Ms Palaszczuk was this month forced to blacklist Mr Moorhead, Mr Nelson and rival lobbyist Cameron Milner after a scathing integrity review into the Queensland public sector.
Ms Palaszczuk told parliament in February that Anacta had not made representations on behalf of Aspen Medical regarding Wellcamp.
“The decision to outsource medical service delivery was made after consultation with both hospital and health services and other potential providers and revealed that capacity could not be scaled up in time to operationalise the Wellcamp facility,” the Premier said.
Several potential providers have rejected that claim.
The government has been under pressure to justify value for money for taxpayers, given the cost for renting hotel rooms to isolate vulnerable people would be much cheaper.
Liberal National Party deputy leader Jarrod Bleijie wrote to Auditor-General Brendan Worrall in February requesting he audit the secret Wellcamp deal to investigate the use of taxpayers’ money.
The audit office is still seeking information from government departments.
“This will include identifying the various costs, understanding the procurement process, and reviewing leases and other agreements including the use of confidentiality provisions,” the audit office website states.
“We will consider further actions once we have obtained and assessed this information.”
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