❓ Opposition Leader Mark McGowan questions the Minister for Health, Dr. Kim Hames, regarding delays and cost overruns associated with the Fiona Stanley Hospital commissioning. Hames acknowledges responsibility and apologises for the delay.
AnsweredQoN 268Legislative Assembly
QuestionView source ↗
FIONA STANLEY HOSPITAL — COMMISSIONING
DELAY REPORT
268. Mr M. McGOWAN to the
Minister for Health:
I have a supplementary question. Considering that this report
has numerous findings that are critical of the minister and his government and
his failure to bring forward his retirement in response, will he at least
apologise to the house and the people of Western Australia for this massive
failure that has cost taxpayers hundreds of millions of dollars?
DELAY REPORT
268. Mr M. McGOWAN to the
Minister for Health:
I have a supplementary question. Considering that this report
has numerous findings that are critical of the minister and his government and
his failure to bring forward his retirement in response, will he at least
apologise to the house and the people of Western Australia for this massive
failure that has cost taxpayers hundreds of millions of dollars?
AnswerView source ↗
I knew there was an issue I had not addressed in that, and it
was this farcical statement about the loss of millions of dollars. Sorry; I
will correct that.
Mr M. McGowan :
Hundreds of millions.
Mr B.S. Wyatt :
Hundreds of millions.
Dr K.D. HAMES :
That helps me; I thank the members.
The farcical statement about the
loss of hundreds of millions of dollars is clearly factually incorrect. When
both Labor Party committee members stood, what they did not talk about was a
letter I wrote to the committee that I noticed was not included in the —
Ms R. Saffioti interjected.
The SPEAKER :
Member for West Swan, I call you to order for the second time.
Dr K.D. HAMES :
What they did not talk about is a letter I wrote to the committee detailing the
money that was included in that so-called $300 million over-expenditure. I have
given a copy of that to the media, for members' information, so that
they can read what the committee failed to say in its response. Yes, this
amount, I am sure Treasury would not deny. There was $335 million on the IT
budget to deal with Fiona Stanley and other IT issues in the forward estimates
back in 2004. In 2011–12, $259 million of that was taken out by
Treasury for other purposes. Treasury subsequently gave us back funding in two tranches—one
of $75 million and one of $50 million; sorry, I might have those wrong. The
total amount, anyway, was $150 million. Treasury subsequently gave us back $150
million, and the opposition is counting that in its $300 million blowout. Treasury
took away $259 million, gave us back $150 million, and the opposition reckons
$150 million is a blowout! It is an absolute nonsense, that blowout. The extra
costs resulting from the decision to delay —
Mr B.S. Wyatt interjected.
The SPEAKER : Member
for Victoria Park, I call you to order for the second time.
Point of Order
Mr M. McGOWAN : My
question was clearly about whether or not the minister would apologise, and I
think that question is the one that deserves an answer here.
Questions without Notice Resumed
Dr K.D. HAMES : An
answer has a beginning, middle and end; I am at about the middle and at the end
I will cover that issue for the Leader of the Opposition.
My middle bit is about —
Several members interjected.
The
SPEAKER : Member for Albany, I call you to order for the first time. We are
getting nowhere fast.
Dr
K.D. HAMES : I am trying to get through this very complex issue. The reality
is that the actual cost of the delay of six months is around $16 million. There
is an additional cost for the decision to phase, and that is an additional
amount of money, but the delay for the opening of a $2 billion project—I
will ask the shadow Treasurer to do the maths—is $16 million. I do not
know what percentage that is, but it is very, very small in the context of a $2
billion project.
With regard to the apology, I have
already presented myself to the media for their scrutiny on this issue, and I
have said that I accept that as Minister for Health, I am responsible and that
I also accept that, looking back, things should have been done differently. I
should have changed the decision made by the Labor Party to open in April. I
had opportunities to change that decision, but I did not; I had an opportunity
to put the opening date back, and I did not. I accept responsibility, and I am
happy to apologise to the people —
Several members interjected.
The
SPEAKER : Member for Albany, I call you to order for the second time. Member
for Victoria Park, I do you want to hear from you again.
Dr
K.D. HAMES : I am happy to apologise to the people of Western Australia and
to say that, unfortunately, we have been forced to delay the opening of this
hospital by six months, but I am very confident that the people of Western
Australia will be extremely satisfied with this fantastic hospital when it is
completed.
was this farcical statement about the loss of millions of dollars. Sorry; I
will correct that.
Mr M. McGowan :
Hundreds of millions.
Mr B.S. Wyatt :
Hundreds of millions.
Dr K.D. HAMES :
That helps me; I thank the members.
The farcical statement about the
loss of hundreds of millions of dollars is clearly factually incorrect. When
both Labor Party committee members stood, what they did not talk about was a
letter I wrote to the committee that I noticed was not included in the —
Ms R. Saffioti interjected.
The SPEAKER :
Member for West Swan, I call you to order for the second time.
Dr K.D. HAMES :
What they did not talk about is a letter I wrote to the committee detailing the
money that was included in that so-called $300 million over-expenditure. I have
given a copy of that to the media, for members' information, so that
they can read what the committee failed to say in its response. Yes, this
amount, I am sure Treasury would not deny. There was $335 million on the IT
budget to deal with Fiona Stanley and other IT issues in the forward estimates
back in 2004. In 2011–12, $259 million of that was taken out by
Treasury for other purposes. Treasury subsequently gave us back funding in two tranches—one
of $75 million and one of $50 million; sorry, I might have those wrong. The
total amount, anyway, was $150 million. Treasury subsequently gave us back $150
million, and the opposition is counting that in its $300 million blowout. Treasury
took away $259 million, gave us back $150 million, and the opposition reckons
$150 million is a blowout! It is an absolute nonsense, that blowout. The extra
costs resulting from the decision to delay —
Mr B.S. Wyatt interjected.
The SPEAKER : Member
for Victoria Park, I call you to order for the second time.
Point of Order
Mr M. McGOWAN : My
question was clearly about whether or not the minister would apologise, and I
think that question is the one that deserves an answer here.
Questions without Notice Resumed
Dr K.D. HAMES : An
answer has a beginning, middle and end; I am at about the middle and at the end
I will cover that issue for the Leader of the Opposition.
My middle bit is about —
Several members interjected.
The
SPEAKER : Member for Albany, I call you to order for the first time. We are
getting nowhere fast.
Dr
K.D. HAMES : I am trying to get through this very complex issue. The reality
is that the actual cost of the delay of six months is around $16 million. There
is an additional cost for the decision to phase, and that is an additional
amount of money, but the delay for the opening of a $2 billion project—I
will ask the shadow Treasurer to do the maths—is $16 million. I do not
know what percentage that is, but it is very, very small in the context of a $2
billion project.
With regard to the apology, I have
already presented myself to the media for their scrutiny on this issue, and I
have said that I accept that as Minister for Health, I am responsible and that
I also accept that, looking back, things should have been done differently. I
should have changed the decision made by the Labor Party to open in April. I
had opportunities to change that decision, but I did not; I had an opportunity
to put the opening date back, and I did not. I accept responsibility, and I am
happy to apologise to the people —
Several members interjected.
The
SPEAKER : Member for Albany, I call you to order for the second time. Member
for Victoria Park, I do you want to hear from you again.
Dr
K.D. HAMES : I am happy to apologise to the people of Western Australia and
to say that, unfortunately, we have been forced to delay the opening of this
hospital by six months, but I am very confident that the people of Western
Australia will be extremely satisfied with this fantastic hospital when it is
completed.
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