❓ Ms. Mettam questions the Treasurer about potential cost blowouts and delivery timelines for the Peel Health Campus redevelopment, announced 900 days prior. The Treasurer acknowledges delays and cost increases due to a strong construction market, but doesn't provide specific figures.
AnsweredQoN 330Legislative Assembly
QuestionView source ↗
PEEL HEALTH CAMPUS —
REDEVELOPMENT
330. Ms L. METTAM to the Treasurer:
I refer to the Treasurer's
announcement on 29 November 2002, exactly 900 days ago today, that the
government would be redeveloping and expanding Peel Health Campus. In that
time, the population in the region has increased significantly, and, with that,
so has demand for access to quality on-demand and affordable health.
(1) Is the cost
of the Peel Health Campus project expected to blow out, as the member for
Mandurah told the Peel state budget breakfast last Friday; and, if so, by how
much?
(2) When will the project be
delivered?
Several members interjected.
The SPEAKER : Order, please!
Order, member for Balcatta!
REDEVELOPMENT
330. Ms L. METTAM to the Treasurer:
I refer to the Treasurer's
announcement on 29 November 2002, exactly 900 days ago today, that the
government would be redeveloping and expanding Peel Health Campus. In that
time, the population in the region has increased significantly, and, with that,
so has demand for access to quality on-demand and affordable health.
(1) Is the cost
of the Peel Health Campus project expected to blow out, as the member for
Mandurah told the Peel state budget breakfast last Friday; and, if so, by how
much?
(2) When will the project be
delivered?
Several members interjected.
The SPEAKER : Order, please!
Order, member for Balcatta!
AnswerView source ↗
(1)–(2) The government has a
massive rebuild program —
Mr D.A. Templeman : That you
didn't do anything about.
Mr P.J. Rundle : Who is
answering the question?
Mr
M. McGOWAN : They are having an
argument, Madam Speaker! I am just a bystander. Do you want me to continue?
Several members interjected.
The SPEAKER : I have
two-thirds of the opposition interjecting.
Mr M. McGOWAN : That is right. That opposition is a very
unruly group.
We have a major investment program
in health initiatives around the state. Before I get to Peel, the other day I was
able to open the new Newman Hospital with the member for Pilbara. It is a terrific
hospital. It is just a beautiful hospital. We are redeveloping Bunbury
Hospital; I think that is $260 million or so. From memory, the cost of
redeveloping Geraldton Health Campus is $170 million or thereabouts, and that
is proceeding ahead. We are also developing Tom Price Hospital, Laverton Hospital,
Joondalup Health Campus, Osborne Park Hospital, and we will build a new women's
and babies' hospital by 2029 at Fiona Stanley Hospital.
Peel Health Campus is one of the
projects that we announced during the end of the last Parliament. A couple of
things are happening at Peel. One component is the redevelopment, which is both
public and private, and the other component is the transition of the services
there from the private contractor to government. Both those things will take
some time, obviously. Again from memory, the Peel Health Campus redevelopment
will cost $152 million to provide additional upgrades and services, which is a significant
expansion of what was originally to be provided. It is a significant expansion
in the budget. I am not the Minister for Health and do not have the exact
details of where that is at, but it will happen.
This is a perennial set of
questions. Things take time to build. We cannot just build a hospital on a slab
somewhere and put it on the back of a truck
and move it to the site. Building and rebuilding a hospital is a big exercise.
It takes time in a very strong construction market. That is basically
the reality of what we are dealing with in Western Australia because the
construction market is incredibly strong. It is the strongest that anyone has
seen. That includes major construction, public construction and residential
construction, and in the mining industry. It takes time to build things. That
is just a reality. I think 98 per cent of people understand that. That is one
of the realities we are dealing with in Western Australia. I do not have the
latest figures on the cost of the campus, but as we have outlined numerous times, the cost of construction goes up. It
turns out that steel has gone up by 60 per cent , concrete by 250 per
cent, and labour costs for non-technical labour has gone up 20 per cent and 50 per
cent for technical labour. That is the reality of what everyone is dealing with
both here and interstate. Some very interesting figures came out of Sydney the
other day. The cost of two rail lines there has blown out by $20 billion. The
cost per kilometre of building a rail line
in Sydney is somewhere between 15 and 20 times what it is here. Our
construction market is great value for money compared with anywhere else
in Australia.
massive rebuild program —
Mr D.A. Templeman : That you
didn't do anything about.
Mr P.J. Rundle : Who is
answering the question?
Mr
M. McGOWAN : They are having an
argument, Madam Speaker! I am just a bystander. Do you want me to continue?
Several members interjected.
The SPEAKER : I have
two-thirds of the opposition interjecting.
Mr M. McGOWAN : That is right. That opposition is a very
unruly group.
We have a major investment program
in health initiatives around the state. Before I get to Peel, the other day I was
able to open the new Newman Hospital with the member for Pilbara. It is a terrific
hospital. It is just a beautiful hospital. We are redeveloping Bunbury
Hospital; I think that is $260 million or so. From memory, the cost of
redeveloping Geraldton Health Campus is $170 million or thereabouts, and that
is proceeding ahead. We are also developing Tom Price Hospital, Laverton Hospital,
Joondalup Health Campus, Osborne Park Hospital, and we will build a new women's
and babies' hospital by 2029 at Fiona Stanley Hospital.
Peel Health Campus is one of the
projects that we announced during the end of the last Parliament. A couple of
things are happening at Peel. One component is the redevelopment, which is both
public and private, and the other component is the transition of the services
there from the private contractor to government. Both those things will take
some time, obviously. Again from memory, the Peel Health Campus redevelopment
will cost $152 million to provide additional upgrades and services, which is a significant
expansion of what was originally to be provided. It is a significant expansion
in the budget. I am not the Minister for Health and do not have the exact
details of where that is at, but it will happen.
This is a perennial set of
questions. Things take time to build. We cannot just build a hospital on a slab
somewhere and put it on the back of a truck
and move it to the site. Building and rebuilding a hospital is a big exercise.
It takes time in a very strong construction market. That is basically
the reality of what we are dealing with in Western Australia because the
construction market is incredibly strong. It is the strongest that anyone has
seen. That includes major construction, public construction and residential
construction, and in the mining industry. It takes time to build things. That
is just a reality. I think 98 per cent of people understand that. That is one
of the realities we are dealing with in Western Australia. I do not have the
latest figures on the cost of the campus, but as we have outlined numerous times, the cost of construction goes up. It
turns out that steel has gone up by 60 per cent , concrete by 250 per
cent, and labour costs for non-technical labour has gone up 20 per cent and 50 per
cent for technical labour. That is the reality of what everyone is dealing with
both here and interstate. Some very interesting figures came out of Sydney the
other day. The cost of two rail lines there has blown out by $20 billion. The
cost per kilometre of building a rail line
in Sydney is somewhere between 15 and 20 times what it is here. Our
construction market is great value for money compared with anywhere else
in Australia.
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