Queensland disconnects $600m government quarantine sites

Acting Queensland Auditor-General Karen Johnson confirmed at an estimates hearing on Tuesday that a formal investigation had been launched into the QRAC Wellcamp quarantine project and the government’s lease arrangements, after the opposition wrote to the audit office in February.

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Johnson said efforts had been stymied, but some information requested in April had not yet been provided.

After arguing at length that the costs were subject to commercial confidentiality, Miles said on Wednesday that the government had always planned to detail them during the budget process and, given the settlement of the site, there was now even less risk associated with it.

He said the original deal had been to lease the facility, but as more details emerged about what was needed, the government agreed to fund a previously disclosed initial capital contribution of $48.8 million. “And the rest of the $198.5 million is the rental cost,” Miles said.

Operating costs to date include payments of $9 million to Compass Group for facility management. Miles said Aspen Medical was allocated a cap of up to $108 million for health services, but only $16 million has been paid out so far. The government’s lease will expire in April next year.

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Mr Miles referred questions from Deputy Opposition Leader Jarrod Bleijie about whether full payment would be required of Aspen under the deal to the health estimates session scheduled for Friday, as Queensland Health managed the contract.

In a statement, Opposition Leader David Crisafulli said the Wellcamp project was a “happy decision to try to stick the old federal government in”.

“A good quarantine plan was vital,” he said. “That wasn’t it.”

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