Wellcamp quarantine hub: Audit says no need for secrecy around costs

A member of the powerful Toowoomba family who built the controversial quarantine hub has responded to a report that found the government failed to consider future needs, and there was no need to keep its $223m price tag a secret.

A Queensland Audit Office report has determined there was no need to keep the price tag of the controversial $223m Wellcamp quarantine hub hidden from the public, and revealed the state government failed to consider future quarantine needs.

Auditor-General Brendan Worrall has recommended the state government improve its disclosure of information policies, which did not require the government to reveal the contract for construction and lease of the facility, formally known as the Queensland Regional Accommodation Centre.

The Queensland Regional Accommodation Centre. Picture: Nev Madsen.

“We believe that despite the confidentiality provisions in the agreements, the Queensland government should have considered disclosing the total value of the arrangement once the agreements were signed,” the report said.

The costs of the facility, which the government constantly said remained “commercial-in-confidence” for months, were only revealed in a budget estimates hearing in July 2022.

Mr Worrall recommended the expansion of the definition of reportable contracts to include the purchase and lease of property, and that the Department of Energy and Public Works updated its guidelines to advise when confidential information could be released.

The report also recommended the Department of Premier and Cabinet develop guidance to assist ministers in answering questions in parliament on confidential matters.

Queensland Premier Annastacia Palaszczuk and Deputy Premier Steven Miles visit the Wellcamp quarantine hub. Wednesday, February 16, 2022. Picture: Nev Madsen.

But Director-General Rachel Hunter rejected the idea, stating the variable nature of confidential contracts “precludes any standardised approach”.

“The processes provided for in the Estimates Committee hearings also provide an opportunity for these matters to be examined in detail,” Ms Hunter said.

Deputy Opposition leader Jarrod Bleijie said the facility dubbed “Wastecamp” had been revealed as a “political stunt”.

“It’s clear they didn’t listen, and they didn’t care about wasting taxpayers’ money on a political hatchet job,” Mr Bleijie said.

“Time after time they hid behind commercial-in-confidence, when they should have released the details to Queenslanders.

“The Auditor-General has slammed the Palaszczuk Government’s desperate attempts to hide the truth.”

The report, tabled in state parliament on Friday, also concluded the procurement process with Wagner Corporation was reasonable, but also said future quarantine needs should have been “fully considered”.

“While there was still significant uncertainty on the continuing impact of the pandemic at this time, alternates such as home and hotel quarantine were available,” it said.

“This should have been more fully considered at the time of entering the contract in September 2021 to better ensure value for money for taxpayers.”

Denis Wagner (left) John Wagner and Deputy Premier Steven Miles, quarantine hub at Wellcamp Airport. Monday, December 20, 2021. Picture: Nev Madsen.

National cabinet agreed to the national plan in August 2021, seven weeks before the state government received final approvals for the quarantine facility.

The final phase of the national plan, which included no quarantine for vaccinated international arrivals, began in February 2022 – the same month QRAC opened its doors.

“This significantly reduced the need for quarantining, resulting in only 730 people being accommodated in the facility, Mr Worrall said.

Speaking to media on Friday, Premier Annastacia Palaszczuk said she didn’t have a “crystal ball” when the government agreed to build the facility.

“Let’s remember this was a different space and time,” she said.

“We were acting on the chief health officer’s advice … this best suited the needs of people at that time.”

The lease on QRAC ended in April 2023, months after it was mothballed mid-2022.

No additional use for the facility has been revealed.

The audit also concluded the final cost of the facility was $223m.

Capital and leasing costs for the facility totalled $198.5m, with an additional $24.6m spent on operational costs.

Mr Worrall’s report also revealed more details on the two alternate options the state government considered for quarantine.

Both the Homeground Mining Camp located near Gladstone and the Shoalwater Bay Defence Training Centre near Rockhampton were both examined and deemed not feasible due to transport access, and support from federal and local governments.

Wagners boss responds

Powerful Toowoomba businessmen and Wagner Corporation chairman John Wagner said the report showed the procurement process had been followed fully, declaring the quarantine facility was “good value for money”.

“The report showed that full proper processes were followed and the facility represented good value for money,” he said.

“I was quite happy with it from our point of view and the government had it all independently signed off.

“They made the decision based on the facts at the time which was a good decision.”

Mr Wagner said it was the government’s decision on when to disclose the full cost of the project, while noting how the Toowoomba construction sector had benefited from it being built.

“We had a deal with the government which was commercial in confidence, it was up to them to disclose it,” he said.

“85 per cent of the construction value has gone into the Toowoomba community and it was a huge windfall for the local construction industry.

“That’s been somewhat lost in all this.

We see the facility as very much a community facility, regardless of who goes in there, the community will benefit from it in the form of maintenance, jobs and suppliers.”

Mr Wagner said the company was still looking for the “highest and best” use of the facility.