Labor health spokeswoman Sarah Lovell calls for answers on Royal Hobart Hospital redevelopment

Labor says the Government must reveal whether it will waive millions of dollars in fees potentially owed by the builder managing the overdue Royal Hobart Hospital redevelopment.

Opposition health spokeswoman Sarah Lovell. Picture: NIKKI DAVIS-JONES

LABOR says the State Government must reveal whether it will waive millions of dollars in fees potentially owed by the builder managing the overdue Royal Hobart Hospital redevelopment.

The hospital’s K Block building was due for completion by late this month but its timeline has been pushed out to mid-2019.

The contract between the Government and managing contractor John Holland Fairbrother Joint Venture allowed for damages 30 days after the date for practical completion at $17,000 a day.

The penalty would increase to $35,000 a day 60 days after the practical completion date.

The penalties could be worth more than $5.5 million over the next six months.

Opposition health spokeswoman Sarah Lovell said Tasmanians wanted answers.

“The Government must be open and transparent about its negotiations with John Holland, especially if they are preparing to waive late completion fees — which is money that could be redistributed to assist with the ongoing health crisis,” Ms Lovell said.

The Government and John Holland-Fairbrother have repeatedly said K Block was on track for practical completion by mid-2019.

A government spokesman yesterday accused Labor of playing politics with health.

“The first patients will be in the new K Block by the end of 2019,” the spokesman said.

The Government would progressively open the 250 new beds by 2024, including refurbishment and upgrades to older wards and units, the spokesman said.

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