It is understood the money should have gone towards the preparation of the clinical services plan.

Work on the clinical services plan did not commence until late 2007 or early 2008 and was not signed off until late last year.

A Hunter New England Health spokesperson confirmed yesterday the clinical services plan had been paid for from the $2 million announced in last year’s budget for the project definition plan and the service procurement plan.

This was despite the then premier, Morris Iemma, telling the NSW parliament the Government already had a clinical services plan on June 26, 2008 – just weeks out from the June 3, 2008, budget allocation that was eventually drawn on by NSW Health Infrastructure to pay for it.

The Hunter New England Health spokesman also confirmed that Hunter New England had not yet drawn down any of the $2 million set aside for the project definition and the service procurement plans.

NSW Health Infrastructure is currently working to appoint a project director for these two plans in July – after the next State Budget.

Confusion exists over whether or not the balance of the $2 million allocated on June 3 last year will remain with the hospital project or revert back to the State Government’s general revenue.

Hunter New England Health chief executive Nigel Lyons said yesterday the money would go back to the State Government.

“In line with the process for any NSW capital works project, any allocated funds that have not been spent in that financial year (in this case $1.87 million) will be retained by the State Government to be spent in the next State Budget,” he said.

“This is standard practice.”

On Monday a spokesman for NSW Health Minister John Della Bosca said this was not the case.

“No funds allocated to the project will be lost – they are rolled over – they are not returned to Treasury,” he said.

The $120,000 that NSW Health Infrastructure drew from the $2 million 2008/2009 funding was used to fund the planning of the Tamworth Health Service Plan (Clinical Services Plan).* Our say, page eight.