UPDATE:

THE NSW Government has dismissed concerns about potential flooding and a change of land use as it confirmed its intention to build its new Tweed Valley Hospital at Kingscliff.

NSW Health Minister Brad Hazzard visited Kingscliff today to confirm the NSW Government was in final negotiations with the landowner of a 23ha parcel of prime agricultural land on the boundary between Cudgen and Kingscliff.

The site, which currently is used to farm sweet potatoes, is on elevated land across the road from North Coast TAFE.

"There were 30 sites that we looked at and on all the criteria that were necessary, particularly being close to the population growth area and also being so close to TAFE... we decided this area was the prime area,” Mr Hazzard said.

"This will be a fantastic outcome for health for the entire community.

"At the moment we have around 210 beds for the Tweed, we are looking somewhere in the order of 450 beds in the new hospital, bigger operating theatres... new facilities, new pediatric services, it will be an incredible outcome for this community.”

Ms Hazzard dismissed concerns of flooding, saying more than 16ha of the site's 23ha were above the flood level, with several alternative routes available to access the site should flooding occur in the region.

He declined to comment on the price of the land as it remained subject to negotiation, but confirmed it would have to be rezoned from prime agricultural land to one suitable for a hospital.

Sources confirmed the land in question is owned by a long-time Cudgen farmer, whose family has farmed the area for several generations, and not National Party powerbrokers the Beck family.

The government has committed to build the new $534 million hospital by 2022, with the first works expected to get underway as early as next year.

Tweed MP Geoff Provest welcomed the announcement, saying it would be a game-changer for the Tweed.

"This is the largest capital investment ever in the Tweed,” Mr Provest said.

He dismissed criticism of the change of land use from prime agricultural land, saying there was no flood-free alternative.

"It's on prime agricultural land, I make no secret of that, but it is on the edge of our prime agricultural land, so it is not fragmenting it. It is the best site considering all the criteria.” Mr Provest said.

"The most premium site was this one because it was flood-free and close to major transport links and 75% of the population of the Tweed is within 30 minutes driving of here.”

Doctors' reaction

Dr Rob Davies, who heads the Emergency Department at the Tweed Hospital, welcomed the announcement on behalf of the Medical Staff Council, saying the view and surrounding location "has to be a positive for health”.

"For us it has always been about the services we require for the community going forward for the next 20 to 40 years,” Dr Davies said.

"The current site was just too problematic in being able to deliver for the community. We see this process that we've been through to find a site today and then build a hospital that will produce an increase and expansion of services for the majority of people in the Tweed and Byron shires... as an enormous step forward and an enormous positive for the community.”

Murwillumbah Hospital

Meanwhile, Mr Hazzard confirmed the new Tweed Valley Hospital would not impact the existence of the Murwillumbah Hospital, which he described as vital to the region's health network.

Lismore MP Thomas George, whose electorate includes Murwillumbah, said the addition of this new hospital was great news for "patients, their families and staff” across the shire.

"Through the addition of this state-of-the-art Tweed Valley Hospital in conjunction with Murwillumbah Hospital, residents will have direct access to world class health services,” Mr George said.

"I reinforce the importance of Murwillumbah Hospital and the services it provides, not only to Murwillumbah residents, but to those living south and south-west who have to travel to receive health treatments.”

A decision on what to do with the existing Tweed Hospital would be decided in years to come, Mr Hazzard said.

EARLIER 9am:

AGRICULTURAL land at Kingscliff will be the site of the new Tweed Hospital.

NSW Health Minister Brad Hazzard is travelling to the Tweed Coast today to announce the site, which is believed to be a nine ha property on Cudgen Rd, opposite the North Coast TAFE campus.

Tweed MP Geoff Provest told ABC North Coast this morning the State Government would have to apply to have the land rezoned from agricultural use to that for a hospital.

Mr Provest said the change from agricultural land on the prized Cudgen Plateau soils would be contentious but hospitals took priority.

"There is a zoning issue with it, but any project over $5 million falls into the area of a state significant (project) and that means that we can apply now to change the zoning on it,” he told ABC Radio.

"It has been contentious, but at the end of the day if it came down to a choice between a hospital bed and a sweet potato, I would always go for the hospital bed.”

Mr Provst said the size of the new grounds would enable the hospital to grow into the future, if required.

"We're going to fix car parking forever, and in 10 years time or 12 years time if we need to build a new wing we've got the land to do it,” he said.

"I think that's crucial, that we're really planning for the future and the future growth of the Tweed region.”

The site was chosen from a list of 30 possibilities, following an expression of interest campaign launched late last year.

The state has committed to building a $536 million new hospital in the Tweed, to replace the aging existing Tweed Hospital which the Tweed Daily News revealed last week had been operating beyond full capacity for the last month.

Doctors and medical staff are currently in negotiations with Health Infrastructure over the size of the new hospital, saying at least 450 beds are needed to cope with future patient demand in the area.

Mr Hazzard is also expected today to announce the site of a new ambulance station at Pottsville.