❓ A parliamentary question regarding budget increases for the Geraldton Regional Hospital redevelopment, with accusations of mismanagement and potential cuts to other health services. The Minister deflects blame, citing economic factors and previous government underfunding.
AnsweredQoN 1284Legislative Assembly
QuestionView source ↗
I congratulate the Moora community on its outstanding performance in the past few weeks. I refer to the fact that the budget for the Geraldton Regional Hospital redevelopment has skyrocketed from $36 million to $40 million to $49 million even before building has commenced. (1) Will the minister table the two due diligence test reports that confirm that the Geraldton Regional Hospital could be built for $36 million? (2) What is the minister’s justification for singling out Moora District Hospital as the scapegoat to salvage his mismanagement of the Geraldton Regional Hospital redevelopment? (3) As the budget blow-out for the Geraldton Regional Hospital redevelopment continues to skyrocket - from $36 million to $49 million - what other health services will be pruned to meet the blow-out? (4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY
AnswerView source ↗
(1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(1) Will the minister table the two due diligence test reports that confirm that the Geraldton Regional Hospital could be built for $36 million? (2) What is the minister’s justification for singling out Moora District Hospital as the scapegoat to salvage his mismanagement of the Geraldton Regional Hospital redevelopment? (3) As the budget blow-out for the Geraldton Regional Hospital redevelopment continues to skyrocket - from $36 million to $49 million - what other health services will be pruned to meet the blow-out? (4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(2) What is the minister’s justification for singling out Moora District Hospital as the scapegoat to salvage his mismanagement of the Geraldton Regional Hospital redevelopment? (3) As the budget blow-out for the Geraldton Regional Hospital redevelopment continues to skyrocket - from $36 million to $49 million - what other health services will be pruned to meet the blow-out? (4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(3) As the budget blow-out for the Geraldton Regional Hospital redevelopment continues to skyrocket - from $36 million to $49 million - what other health services will be pruned to meet the blow-out? (4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(1) Will the minister table the two due diligence test reports that confirm that the Geraldton Regional Hospital could be built for $36 million? (2) What is the minister’s justification for singling out Moora District Hospital as the scapegoat to salvage his mismanagement of the Geraldton Regional Hospital redevelopment? (3) As the budget blow-out for the Geraldton Regional Hospital redevelopment continues to skyrocket - from $36 million to $49 million - what other health services will be pruned to meet the blow-out? (4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(2) What is the minister’s justification for singling out Moora District Hospital as the scapegoat to salvage his mismanagement of the Geraldton Regional Hospital redevelopment? (3) As the budget blow-out for the Geraldton Regional Hospital redevelopment continues to skyrocket - from $36 million to $49 million - what other health services will be pruned to meet the blow-out? (4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(3) As the budget blow-out for the Geraldton Regional Hospital redevelopment continues to skyrocket - from $36 million to $49 million - what other health services will be pruned to meet the blow-out? (4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(4) Is the $13 million budget blow-out for the Geraldton Regional Hospital redevelopment a gross miscalculation by the people conducting the due diligence reports or due to the minister’s incompetence? Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY replied: (1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
(1)-(4) I hope it is not the latter. As regards the Geraldton Regional Hospital redevelopment, it was appreciated that the building would need to be completely rebuilt. That goes back some considerable period. As best I recollect it, the commitment that was made by the previous State Government when the estimate of the cost was in the order of $40 million - Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr M.W. Trenorden: It was $35 million. Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY: No, the member for Avon is not correct when he says that. Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr M.W. Trenorden: Table the due diligence reports. Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY: I have not seen the due diligence documents. Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr M.W. Trenorden: Get them out and table them. Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY: Let met just make this point to the member, and I will cover the issue in more detail in the debate on the matter of public importance that is to proceed after question time: the budget provision was made when the estimate for the rebuilding of Geraldton Regional Hospital was $40 million. In a budget of the member’s Government, $35 million was set aside. Not enough money was set aside to meet what the member’s Government then recognised as being the cost. We increased the budgetary amount this year to $40 million to enable the project to proceed. We then went out to tender and in a competitive tendering environment I can only conclude that the economy of Geraldton is doing extremely well at the moment and there is a shortage as a result of so much economic activity in the city of Geraldton which had the effect of driving up the prices. Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Several members interjected. The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
The SPEAKER: Members! Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
Mr J.A. McGINTY: The market came in with an amount significantly ahead of the figure the Department of Health had estimated through its consultants. I am advised that local conditions caused the inflated price. We had an option of deferring the redevelopment of the Geraldton hospital for a year or two, in the hope that the heat would come out of the local economy and that the level of activity in Geraldton would subside. A further difficulty was that Perth contractors bidding for the project included an additional allowance for the relocation to Geraldton. All those factors came into play. We have indicated that we will accept the lowest tender but we have not yet signed the contract. As a result of the tender process, the lowest tender was $9 million above the base price fixed by the Department of Health, which was, in turn, $5 million more than the previous coalition Government had set aside in the budget. Yet, it knew - the member knew - that unless the hospital’s activity was very significantly scaled back, the price for the new Geraldton hospital would be $40 million. To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
To answer the member’s question specifically, we are in the process of concluding the negotiations with the lowest tenderer. I will not release any documentation until those negotiations are concluded. I think the member will understand perfectly why that would be inappropriate.
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