Cairns University Hospital: State budget raises questions over missing money

Millions of dollars are missing from a Cairns University Hospital land fund as budget documents cast doubt on whether the plan has progressed as far as promised.

MILLIONS of dollars appear to have evaporated from a Cairns University Hospital land fund as budget documents cast doubt on whether the plan has progressed as far as promised.

Premier Annastacia Palaszczuk last month announced the land was “locked in” for the major expansion project, set to create more beds, world-class research facilities and jobs for some of the country’s top medical professionals.

It followed months of tense negotiations with James Cook University, which the State Government believed had jumped the gun by signing contracts for a large tract of land to build its Cairns Health Innovation Precinct component of the project.

A preliminary business case is currently being investigated for the Cairns University Hospital expansion project.

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“I’m so pleased we have a site locked in, land ready and everyone is now working on delivering this major asset … sooner rather than later,” Ms Palaszczuk said at the time.

A month later and capital statements from the state budget reveal only $1m has been earmarked for the land acquisition next financial year, with the $13.8m lion’s share to be spent “post-2021-22”.

It remains to be seen if the prolonged timeline to spend the land acquisition money – which could theoretically extend beyond the next budget cycle too – will delay planning and construction.

Health Minister Yvette D’Ath insisted the land was “completely locked in”.

The land for a university hospital at the corner on Charles and Sheridan Streets has been secured. Picture: Stewart McLean

“The acquisition is being funded through the normal state budget process,” she said.

“We are pressing full steam ahead with the master planning required to deliver this facility as part of our commitment to deliver a Cairns University Hospital.”

An estimated $100m more money to build the facility is required on top of the $15m land fund – all spring-boarding off a $1.5m business case which is currently under way.

Opposition health spokeswoman Ros Bates has accused Labor of using creative accounting techniques to spruik big spends which are off in the never-never.

“The people of Cairns have been betrayed by the Premier, deputy premier and the embattled health minister,” she said.

“The State Government claims it’s a record health budget, but their record on health is appalling.”

JCU Vice-Chancellor Sandra Harding said she saw no barriers to the project continuing as planned.

“We continue to have positive and constructive discussions with the State Government,” she said.

“We are all aware of what an important project this is … and we’re working together to make it happen.”

Originally published as Cairns University Hospital: State budget raises questions over missing money