LNP opens door to hospital board overhauls, raising spectre of ‘cronyism’

3 months ago 15

A major anti-corruption group has raised concerns over a Crisafulli government move to expand its sweeping overhaul of board positions to Queensland’s health services.

Changes passed by parliament on Tuesday extend Health Minister Tim Nicholls’ powers to reshape 16 public hospital governing bodies at cabinet’s discretion.

Transparency International Australia chief executive Clancy Moore told this masthead the moves “risk entrenching ministerial power and create the conditions for cronyism and ‘jobs for mates’ for government-appointed roles”.

Health Minister Tim Nicholls has defended the move and accused Labor of hypocrisy.

Health Minister Tim Nicholls has defended the move and accused Labor of hypocrisy. Credit: Matt Dennien

Hospital and health service boards appoint chief executives, control the often multibillion-dollar services’ budgets, and are accountable – along with the minister – for performance and standards.

Regular members on most health boards are paid at least $44,000 each year, with chairs earning at least $85,000. A handful of the smaller rural and remote health service boards have lower remuneration.

Under previous laws, the cabinet-appointed board members could only be removed by the minister or government for a set of specific reasons, including convictions, insolvency, or incompetence.

But the power to remove board members without cause exists across a range of other sectors, and has been widely used by the Crisafulli government since its election last October.

An investigation by this masthead in October revealed changes across 115 of the state’s 320 boards. Almost two-dozen appointments held explicit LNP links, raising concerns from some former members.

This masthead’s updated analysis found only five appointments across 137 health service board roles since the election.

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The new powers will apply to existing members – some, including those with Labor links, already pushed from other boards.

About half of the current health service board role terms are due to expire in March next year. Most remaining terms are not due to expire until 2028.

The powers will also apply to the chief executives of the Queensland Pharmacy Business Ownership Council, and Health and Wellbeing Queensland.

Moore said boards exist to give independent advice and oversight at arm’s length from ministers, and the ability for members to be “sacked arbitrarily” harms independence.

“There should be clear grounds for dismissal – serious misconduct, incapacity, or unacceptable conflicts of interest,” he said.

“But there must be due process for removal, not ministerial discretion to dismiss at will.

“We have long argued for an independent panel to make recommendations and appointments to government boards based on merit and transparent selection criteria.”

Labor opposition MPs, along with stakeholders such as the Queensland Law Society and the nurses’ union, have also raised concern over the changes’ potential to harm public confidence.

During parliamentary consideration of the bill, the law society also warned the “opaque processes … could dissuade good candidates from taking up these positions”.

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Nicholls told parliament Labor had given themselves such powers for some boards, which were important in the health sector due to their responsibility for delivering critical services that communities rely on.

He said he had only removed one health service board member – who had been convicted of a criminal offence – and had followed processes of natural justice and procedural fairness.

“I remain unapologetic for setting out these powers in a clear and precise way that both the boards and our community know, understand, and can have faith in,” he said.

A separate government bill before parliament would remove no-cause dismissals of Stadiums Queensland board members, as the power “does not … align with fundamental legislative principles”.

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