Qld Health construction blowouts ‘no different to mum and dad renovators’

Capital expenditure at Queensland Health facilities across the state has blown the budget by more than $150 million, with the state government blaming rising construction costs.

Responding to an opposition question on notice on Wednesday, Health Minister Yvette D’Ath revealed that as of last month, 16 Queensland Health projects had a “budgeted overspend”.

Premier Annastacia Palaszczuk, then-candidate (now MP) for Pumicestone Ali King and Deputy Premier Steven Miles announcing the satellite hospital policy at Bribie Island during the 2020 state election.Credit: Toby Crockford

The single biggest blowout was in the Palaszczuk government’s flagship satellite hospitals program, which is now 34.6 per cent over budget – up from $280 million to $376.9 million.

In her answer, tabled in state parliament, D’Ath said that was the result of “significant unexpected cost pressures”, including an expansion of scope, the relocation of the Brisbane South Satellite Hospital to Eight Mile Plains, contamination at some sites, and poor weather.

A government spokesman said Queensland Health was not alone in dealing with rising construction and supply chain costs.

“The Queensland government is no different to mum and dad renovators,” he said.

“We’re paying more for materials and labour like everyone else. But instead of putting on an extension or a new back deck, we’re building big projects like hospitals, which will benefit all Queenslanders for decades to come.”

The private sector has also grappled with rising construction costs and pandemic-related supply chain issues.

Dexus’s landmark $2.5 billion Waterfront Development project blew out by $200 million before a single shovel had broken ground, while the cost of the Queen’s Wharf casino and entertainment complex was expected to be at least 10 per cent more expensive than anticipated.

“Planning for our growing population comes at a cost, but the cost of doing nothing would be significantly more,” the government spokesman said.

“That’s why the Palaszczuk Labor government is investing $10 billion in a capital works program that will see three new hospitals, 11 hospital expansions and a world-class cancer centre built.”

Comment was sought from the LNP opposition.

The government spokesman had a pre-emptive response to any opposition attack based on the figures.

“We’re building and expanding hospitals,” he said. “They built 1 William Street.”