Wake up Campbell – building hospitals isn’t free

Campbell Newman has been exposed as an economic lightweight after yesterday declaring that someone will build the public Sunshine Coast University Hospital for free.

Treasurer Andrew Fraser said the $2 billion hospital will still cost taxpayers $2 billion – regardless of whether the Government builds it or the private sector builds it.

“Building hospitals isn’t free. Campbell Newman is in his own little economic fairyland if he believes that’s the case,” Mr Fraser said.

“Mr Newman’s ill-informed declaration that he could strip money away from the SCUH PPP project and let the private sector fund it is nothing more than nonsensical rot.

“The SCUH PPP will cost $2.03 billion to build. The Government is paying $826 million upfront towards construction and the rest under the proposed 25 year finance lease.

“The private sector builder will want to recoup the money they put in to build it – no-one will build a hospital for free out of the goodness of their hearts.

“Why would anyone build a hospital worth $2 billion for just $820 million?

“That’s what a social infrastructure PPP is – an agreement for the private sector to shoulder most of the upfront costs, while the Government picks up the tab over a longer period.

“This isn’t a tunnel where drivers pay a toll and the private sector partner has a revenue stream where they can get their money back. This is a public hospital – the Government has to pay the bills.

“Campbell Newman must come clean on whether he has a secret plan to charge patients at the SCUH – to make up his $1.2 billion black hole.

“A $2 billion hospital is still going to cost $2 billion. Campbell Newman has revealed his own incompetence by suggesting otherwise.”

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