CAIRNS HOSPITAL REDEVELOPMENT IS FULL STEAM AHEAD

Premier Anna Bligh said today the $446 million redeveloped hospital for Cairns is full steam ahead following the successful sale of Cairns Airport.

The sale of the airport for A$530 million, to the same consortium that bought the Mackay Airport as well as additional equity investor JP Morgan, was finalised late yesterday. After the transaction is completed early next year and all debts associated with the airport are paid, and the balance of monies is earmarked for the hospital, the sale funds will be fully accounted for.

"The proceeds of the sale will go directly into the redevelopment of the Cairns Hospital,’’ Ms Bligh said.

"The comprehensive redevelopment will include additional cardiac care facilities, full day surgery unit, specialist clinics and pathology services, and integrated mental health and cancer care units.

"By 2014, the redevelopment will mean 168 extra beds.

"The cancer units include new radiation oncology units which means, for the first time, Cairns residents will no longer have to travel to Townsville or Brisbane for treatment.

"We haven’t waited until now to get things moving at Cairns Hospital. We provided money in the budget to start preliminary work, which is already underway.

"When I was in Cairns for Regional Parliament I saw this myself, with the beginning of demolition works for the car park redevelopment.

"We want to ensure provide rural and regional Queensland with access to the best possible health services, to help achieve our commitment to helping Queenslanders become Australia’s healthiest people.’’

Member for Cairns and Tourism Minister, Desley Boyle, welcomed the news of the sale.

"This is a great outcome for the people of Cairns and for the tourism industry," she said.

"Other airports that have been sold to private operators have gone from strength to strength in terms of their operational capacity and tourist numbers.

"I’m delighted that Cairns now has this same opportunity."

The Cairns airport operating company will be sold to a consortium comprising a fund advised by J.P. Morgan Asset Management, Westpac Banking Corporation, The Private Capital Group’s The Infrastructure Fund which is managed by Hastings, and Perron Investments, with Queensland Airports Limited as a specialist advisor.

"I offer my congratulations to the winning consortium and I wish them well as they position the airport business for future growth," Ms Bligh said.

Under the terms of the sale agreement, the consortium will operate the airport under a 99-year lease from the State Government, which will continue to own the land and airport infrastructure.

"Additionally, we ensured that the current terms and conditions of current enterprise bargaining agreements for the next three years, thereby securing the jobs of airport workers for the next few years."

The sale of Cairns Airport follows the sale of the Mackay Airport last month for A$208.8 million, which will be channelled into the reconstruction of the Mackay Base Hospital. Mackay Airport was sold to The Infrastructure Fund, Westpac and Perron Investments.

The Government also completed the sale of the State’s interest in Brisbane Airport last month for A$289.4 million.

"The combined proceeds of the Cairns Airport, the Mackay Airport and the Brisbane Airport will see us achieve our target of generating more than A$1 billion from these asset sales," Ms Bligh said.

"These sales demonstrate the underlying confidence of investors in Queensland’s prospects and our economy, even in these uncertain financial times."

Media contact: Premier’s Office (07) 3224 4500