Labor was warned hospital projects at risk from Games development push

The former Labor government commissioned an independent report on its infrastructure program that warned the requirements of the Brisbane 2032 Olympic and Paralympic Games would put other projects at risk.

Consultants from Oxford Economics prepared the 80-page report in September 2023 after being asked by the Department of Transport and Main Roads to advise on any looming capacity and capability constraints.

The report, obtained by Brisbane Times after the election under the Right to Information Act, considered the program of government work over the coming decade in sectors including housing, energy, transport, and health.

Then premier Steven Miles and treasurer Cameron Dick addressing the media before handing down what would be their final state budget.Credit: Matt Dennien

It noted work on the Hospital Capacity Expansion Program, which includes $1 billion hospitals at Coomera and Toowoomba, was due to start in the latter half of the decade and finish before the next.

“…There is material risk that the pipeline of hospital projects is unachievable by FY32, particularly in combination with the rest of the construction pipeline in the lead up to the Olympics,” the report warned.

“Olympics-enabling projects will likely be prioritised with hard deadlines and therefore may exhaust more resources than currently anticipated”.

The report noted conditions would be worse in south-east Queensland where it was likely transport projects would also be prioritised for the Games.

The following month, Infrastructure Partnerships Australia issued a similar warning, prompting the Labor government to defend its “ambitious program” and the then LNP opposition to declare there was “zero chance of delivering all projects on time and on budget”.

Two months after the report was delivered, then premier Steven Miles ditched the Gabba rebuild in favour of a cheaper and mostly temporary upgrade of the Queensland Sport and Athletics Centre.

The incoming LNP government has since launched a review of Games venues, including the best option for a stadium. The terms of reference stipulate that public funding will “remain within the agreed $7.1 billion funding envelope from the State and Australian governments, and other investments for athlete’s villages and transport infrastructure meet legacy and Games needs”.

Premier David Crisafulli has repeatedly vowed to deliver major projects, including hospital upgrades, “on time and on budget”. Central to the LNP pledge is an industrial crackdown and Productivity Commission.

Last week, Health Minister Tim Nicholls appointed an independent reviewer to oversee the hospital projects, warning that the $9.8 billion price tag could blow out to $23 billion.

Documents provided to this masthead suggest the cost of the Prince Charles Hospital project alone has doubled, to $620 million, in two years.

Asked about the Oxford Economics report, Opposition Leader Steven Miles said his government had embarked on “projects that our growing state needs and cannot afford to be cut, rescoped or delayed”.

Miles accused the LNP of “scaring away tradies and investment” by planning for widespread cuts.

“David Crisafulli and the LNP promised to deliver projects on-time, on-budget and without cuts. It’s time they prove it,” Miles said.

Oxford Economics did not include the Gympie Road Bypass Tunnel in its assessment, nor the final plan for the Bribie Island Bridge duplication, and only factored in Sunshine Coast rail being extended to Caloundra, not Maroochydore as the LNP has promised.

Brisbane Lord Mayor Adrian Schrinner this week made an ambit claim for the Games venue review to allocate funding to a series of council projects including Brisbane Metro expansions, a new ferry terminal at Riverside and cruise ship terminal upgrade, a pedestrian bridge from Toowong to West End and restoration work on the Story Bridge.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.