ACT government does not spend one-third of its health capital works budget

As works to upgrade and expand the Canberra Hospital face delays, an analysis of the capital works programs over the past five years showed there was about $758 million available to the territory's health agencies but the government did not spend about $250 million of this.

Even over the past two years of the COVID-19 pandemic, the allocated funds for health capital works was not spent.

The underspend has been blasted by the territory's opposition, with health spokeswoman Leanne Castley saying the government had an "appalling track record" of underspending on health services.

The total amount of funds available for Canberra Health Services last financial year was $60.4 million but only $46 million, or 77 per cent of the allocation, was spent. In the 2020-21 year, there was $78.2 million available but only $52 million, or 68 per cent of the allocation, was spent.

A spokesman from Canberra Health Services said the underspend in the past two financial years was mainly due to the COVID-19 pandemic.

"The capital works program at Canberra Health Services has been impacted by a number of factors in 2020-21 and 2021-2022. This has primarily been due to the ongoing COVID-19 pandemic and the consequent impacts of reprioritised resources, staffing shortages and supply chain issues to name a few," the spokesman said.

"During the period of the ACT COVID-19 lockdown that commenced from August 12, 2021 until October 15, 2021, most of the construction industry was shut down. The flow-on effects on construction projects were widely reported, including the time required for the construction industry to develop strict COVID-safe plans and manage ongoing workforce shortages and supply chain delays."

But the capital works program has shown the government has underspent on health before the COVID-19 pandemic.

The capital works program showed only $94 million of the $140 million budget was spent in 2018-19 and only $114 million of the $217 million budget was spent in 2017-18.

The analysis included money allocated to capital works programs for Canberra Health Services and the ACT Health Directorate over the past three years. In the 2017-18 and 2018-19 years, the funding was for the Health Directorate as Canberra Health Services was not established until late 2018.

The figures for the past three years do not include funding for the Canberra Hospital Expansion as the budget for that sits within the government's infrastructure delivery agency, Major Projects Canberra.

MORE HEALTH NEWS:

In the past financial year, Major Projects Canberra used 112 per cent of its allocation and the Canberra Health Services spokesman said this was due, in part, to the hospital expansion.

The Canberra Hospital expansion, promised in 2016, was initially expected to be completed in 2022 but has been delayed by years. A parliamentary inquiry found a lack of a masterplan for the Woden campus had contributed to the delays.

The spokesman said, despite challenges, the project had not experienced further delays.

"Despite the challenges of pandemic, inclement weather and supply chain challenges, the Canberra Hospital expansion continues on schedule and is tracking well to complete construction by mid-2024," the spokesman said.

"The ACT government continues to work closely with construction partner Multiplex to mitigate the various workforce, weather and supply chain challenges."

An expansion to the Centenary and Women's Children's Hospital will not be completed until October 2023.

The $50 million expansion - announced in 2017 - was originally expected to be completed in the 2020-21 financial year but it was pushed back to the 2021-22 year. But it was quietly revealed in last year's Canberra Health Services annual report that the date was pushed back until late 2023.

A spokesman confirmed the expected completion date of October 2023. The expansion will include an adolescent mental health unit, a gynaecology procedure room, an expansion of the special care surgery and it will add a number of additional beds and new units.

Planning works are underway for a new northside hospital, with the government in discussions about whether the new facility should be built on the existing Calvary site or on a new site. Construction on the hospital could start by 2025, with government flagging the new facility could be completed by 2028.

The spokesman said, despite the underspend in recent years, in the last financial year Canberra Health Services had delivered a 10-bed mental health ward, an eight-bed expansion to the intensive care unit, a neurostimulation suite at the adult mental health ward and had replaced ageing building services.

"Health infrastructure projects are complicated activities, particularly on brownfield sites such as the Canberra Hospital campus," he said.

"Extensive planning is applied to health infrastructure construction projects with patient, staff and visitor safety a key focus for the project teams. Accordingly, health infrastructure project delivery is always subject to clinical operational constraints."

Ms Castley said the significant underspend was an insult to the hardworking nurses and doctors who had not received necessary support from the government.

"The ACT Labor-Greens government has an appalling track record of underspending hundreds of millions of dollars in capital works for health projects and Canberrans deserve better," she said.

"It is no surprise our health system is at breaking point with the worst emergency department wait times in the country, long delays for emergency and elective surgeries and a Canberra Hospital expansion that was promised a decade ago yet to be delivered."

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.