MEDIA STATEMENT: Crisafulli Government steps in to save Townsville university hospital expansion

Crisafulli Government steps in to save Townsville university hospital expansion

• The Townsville University Hospital Expansion Stage 2 is now moving forward
• Crisafulli Government decision to pause BPIC opens up more opportunities for local and regional businesses in Townsville
• Hospital project saved by going back to market free from CFMEU tax to reduce blowouts
• Crisafulli Government to deliver major project while ensuring value for money 

The Crisafulli Government has saved the Townsville University Hospital Expansion project by removing the CFMEU tax from project negotiations.

The Government has announced stage 2 of the significant project will now be returned to market for the first time under improved conditions that are free of the Labor Party’s CFMEU tax, known as BPIC.   

Under the previous Labor Government, contractors were forced to use BPICs on major projects, including significant hospital expansion works, driving up costs and putting project delivery at severe risk.

Under Labor’s chaos and crisis, the Townsville Hospital University Project had blown out by $480 million dollars to more than $1 billion.    

Pausing the CFMEU tax means the Crisafulli Government can now drive better value for money as it delivers the health services Queenslanders deserve as well as provide more opportunities for local and regional businesses to tender for works. 

The Townsville University Hospital Expansion is a critical project for North Queensland and will be delivered by the Crisafulli Government.

Design, planning and early site works (Stage 1) are now complete and all contracts have been honoured.

Queensland Health will now move forward with Stage 2 without the BPIC handbrake and retender for the next stage of construction to ensure the project’s delivery.

Minister for Health Tim Nicholls said stopping Labor’s CFMEU tax meant the TUH project would now be saved and deliver the beds and services North Queensland needs.  

“Removing Labor’s CFMEU tax from the negotiating table allows flexibility to return to the market to ensure the best value for money outcome in the delivery of Stage 2 of the Townsville University Hospital Expansion,” Minister Nicholls said.

“This will provide greater opportunity for local business and regional firms to tender for and win contracts while improving productivity.

“This is the best way forward for ensuring completion of the hospital in Townsville and sends a clear signal to the market that we want to improve productivity and provide better value for money for Queensland taxpayers.

“Our priority must be on delivering easier access to health services for Queenslanders and the Crisafulli is now taken active steps to deliver on that promise,”  Minister Nicholls said.

Chairman of the Townsville Hospital and Health Board Mr Tony Mooney, acknowledged the only way forward to guarantee delivery of the Townsville University Hospital Expansion project, given the almost doubling of the cost since its announcement, is to return to the market for stage 2 which will also provide greater opportunities for local businesses and tradies.

“I have renewed confidence in the Government’s ability to deliver the project in line with community and taxpayer expectations,” Mr Mooney said.

ENDS  

MEDIA CONTACT: David McLachlan 0428 716 171