PPP ON THE TABLE FOR NEW SUNSHINE COAST HOSPITAL

The Beattie Government is considering the new Sunshine Coast Hospital as a potential public-private-partnership project, the Deputy Premier, Treasurer and Minister for Infrastructure Anna Bligh and Health Minister Stephen Robertson said today.

Ms Bligh said the State Government was building three major tertiary hospitals in the south east corner – the Gold Coast and Sunshine Coast Hospitals and the new Queensland Children’s Hospital – worth a total $3 billion.

“The Gold Coast and children’s hospitals have been ruled out as potential PPPs due to logistical and timing issues,” Ms Bligh said.

“We have also recently announced that the sale of Golden Casket will contribute to meeting the construction cost of the children’s hospital.

“However, the $940 million hospital planned for Kawana has progressed to the next stage of the State Government’s PPP test.

“This means the project will now be assessed through a business case development to determine whether private sector involvement is in the best interests of Queensland taxpayers and Government services.

“The benefits and costings have got to stack up against the risks and liabilities to make a compelling case for a PPP hospital before State Cabinet is prepared to commits to this approach.

“We want value for money for taxpayers and that is what this process will determine.”

Mr Robertson, speaking at an Infrastructure Association of Queensland forum today, said capital projects are initially considered against the PPP threshold test.

“As a general rule, only projects with an infrastructure component of more than $100 million whole-of-life cost are considered as potential PPP candidates.

“In reaching a decision on whether to progress a project as a PPP, scope for a PPP to generate additional value is weighed up against the potential additional risks and costs.

“This will ensure that projects proceeding to PPP business case development under the value-for-money framework are genuine candidates.

“An inter-agency steering committee including Treasury, the Department of Infrastructure, Public Works and Queensland Health will now be formed to develop the business case.

“The committee will undertake a risk analysis, sound out the market for potential private developers, complete a public interest assessment, environmental, planning and other related studies and develop a potential partnership model.

“The business case, incorporating these and other components, will then be submitted for Cabinet consideration.”

Ms Bligh said PPP hospitals were a form of procurement in other parts of Australia where demand for public infrastructure is high.

“For example, Casey Hospital at Berwick, Victoria, the Royal Women’s Hospital, Melbourne, Royal North Shore Hospital, Sydney and Newcastle Mater Hospital are all PPP projects completed or under construction,” she said.

“However, the fact there are precedents for PPP hospitals elsewhere in Australia does not necessarily mean we will follow suit.

“This has to deliver real benefits to Queenslanders, particularly Sunshine Coast residents, while minimising risk to Government.”

MEDIA:

Deputy Premier’s Office: Steve Keating 3224 4379

Minister Robertson’s Office: Joshua Cooney 3234 1185