LAND OF OUR LOST MILLIONS
Taxpayers slugged in failed hospital site
Did compensation blow out budget?
TAXPAYERS have forked out millions of dollars on a “wasted opportunity” to build a second hospital to service Cairns’ growing population.
At least $5.25 million in compensation has been paid to the Mann family, following failed plans to turn a 22.2ha block of the family’s Edmonton cane farm into a major healthcare facility for the city’s southside.
The property, which was compulsorily acquired by the Bligh Government in 2010, was only returned to the family this year after the land sat idle for six years.
The Palaszczuk Government has not ruled out whether the compensation was taken directly out of the Cairns and Hinterland Hospital and Health Service’s budget.
CHHHS is facing a budget blowout of $80 million. The root cause is expected to be revealed in an independent report by Ernst and Young to be released by Health Minister Cameron Dick next month.
The property, known as Mann’s Farm, is bordered by Mill Rd in the south, Ravizza Dr in the north and the future town centre of Edmonton in the west. It was acquired six years ago to provide a second hospital for the southside.
It is not known how much the then-government paid for the property. However, internal documents obtained by the
Cairns Post show $10 million was allocated as part of funding for the redevelopment of Cairns Hospital to be used to acquire land for future southern health services.
But three years later then- Cairns Hospital board chairman Bob Norman advised the block was surplus to needs.
The Newman Government intended to sell the property to recover some of the state’s $80 billion debt, but it did not change hands and remained unused.
The family has had a longstanding confidentiality agreement with the government and has steadfastly refused to discuss the issue publicly.
The documents show the Manns lodged a compensation claim of $40.15 million in 2014. They also threatened to take the issue to the Land Court for a determination if the matter could not be resolved.
Mr Dick’s spokeswoman confirmed a settlement was reached with the Manns this year, however refused to disclose the total amount due to the deal being commercial in confidence.
“It’s been settled in accordance with the (Newman) government’s offer,” she said.
In May former CHHHS board chairwoman Carolyn Eagle indicated the service was keen to revive plans for a second hospital with their discussions about a possible greenfields site – including Mann’s Farm – continuing.
However, a Queensland Health spokesman said a deed of release covering the land was executed this year and the government no longer had an interest in the property.
He said the department was working with CHHHS on developing a new southern health precinct.
The government allocated a share of $230m over five years in its 2016/17 budget for the development of the new precinct.
By 2026 an extra 67,000 people are expected to reside within the catchment area and close to one in five will be aged over 65.
Former Cairns City Councillor Fran Lindsay, who has led a campaign for several years to establish a second hospital at Mann’s Farm, said loss of the site was a wasted opportunity for the Far North and a waste of taxpayers’ money.
“It’s an opportunity that’s been lost and an opportunity that’s dragged on for too long,” she said.
IT’S BEEN SETTLED IN ACCORDANCE WITH THE (NEWMAN) GOVERNMENT’S OFFER HEALTH MINISTER CAMERON DICK’S SPOKESWOMAN