The
Queensland Government constructed the Babinda State Hotel in the town of Babinda between 1916 and 1917. It was the only hotel at the time constructed and operated by the Queensland Government under the Labor government's State Enterprises scheme. The town of Babinda was first established in . The township's first entry in
Pugh's Almanac describes Babinda as a small township of 100 people on Mulgrave Railway, in a district mainly devoted to sugar-growing, distant from
Cairns. Between 1914 and 1915 the population of Babinda rose rapidly due to the construction of the Babinda Central Sugar Mill. The town was surveyed for future development in 1915, and private owners bought allotments and began to build homes and businesses. Gradually government facilities were established to serve the local community including a post office, courthouse, police station and state school. From 1915 the
Labor Government, led by
T. J. Ryan and encouraged by wartime restrictions, food shortages and the consequent high prices, established a series of state-run businesses to compete with private sector business. The idea of state enterprises was not new. During the 19th century governments had operated railways and post offices as monopolies, but the general public accepted these as legitimate areas of government. The new state enterprises were distinctly different and designed to directly compete with private enterprise in order to provide the basic necessities at reasonable prices. The first foray into state enterprises was the establishment of the state butchers shops in 1915. This was followed by the establishment of state pastoral stations, fish supply shops, saw mills, produce agencies, cold stores and mines. Despite the good intentions of the government, the state enterprises lost money except for their one success story, the State Hotel at Babinda. The construction of a State Hotel at Babinda was linked to the repercussions of the Sugar Works Act 1911. Under this act the sale of intoxicating liquor was prohibited in sugar growing areas and the two existing hotel licences in the town were revoked and the owners compensated. This left the town with a definite lack of accommodation in the area and it was suggested that the lack of quality accommodation in the town would discourage "the better class of labour" from seeking employment at the sugar refinery. To address this problem the Queensland Government built the first and only state owned and run hotel in Queensland. As it was run by the government, the hotel was also permitted to sell alcohol. Designed by architects in the Department of Public Works and built by day labour, the hotel opened its doors to guests in May 1917. The hotel was a two storied modern structure of concrete and wood with a corrugated iron roof. It had 58 bedrooms, 24 in the First Class Section and 34 in the Second Class Section, and was "splendidly furnished throughout", with reputedly one of the largest bars of any hotel in Queensland. The new State Hotel was designed as a showpiece, and was to be the social centre of Babinda, as well as a major physical landmark in the town. It was the entertainment venue for important visitors and
Prime Ministers Billy Hughes and
Stanley Bruce were both greeted at civic receptions in the hotel. Initially the hotel was operated by the Home Department and with a Manager appointed and paid by the department. Following the passing of the State Enterprises Act 1918 the management of the hotel was transferred to State Enterprises, which were administered by the State Trade Office - a part of the Department of Labour and Industry. Unlike nearly all other state enterprises, the State Hotel actually made money. In 1929 its turnover in the bar was more than a week and that of the house was almost a week. However, with the onset of the
economic depression from 1929 and the massive losses other state enterprises were experiencing, the newly elected
Country Party Government (
Moore Ministry) in Queensland was intent on selling off all state enterprises. Sale of the hotel was announced in
Queensland Parliament in September 1929 with the reading of a special bill for the Babinda State Hotel Sale Act 1929. To entice buyers the government offered a monopoly on hotel trade in the town at least until 1935. It was also a condition of the sale that the purchaser make an application to the licensing court for the deletion of the word "State" from the name of the hotel. Babinda residents opposed the decision to sell the hotel and urged the government to grant additional liquor licences in the area. The Labor party also expressed concern that a syndicate of
Italians might buy the hotel, with the leader of the
ALP William Forgan Smith suggesting that action had to be taken to safeguard the rights of Britishers. Despite this opposition the sale of the hotel went ahead as planned. Consisting of two storey hotel buildings, including accommodation wings and staff quarters, modern furnishings, plant equipment, sample rooms, shop front and garage, the property was put to auction in March 1930. Only four bids were received for the hotel, the highest bid coming from a Mr J. A. O'Hagan of
Brisbane. John O'Hagan, licensed victualler and former licensee of
Lennons Hotel and the Hotel Daniel, continued his negotiations with the Government and eventually bought the hotel for , payable in instalments without interest. Upon the sale the hotel was renamed the Babinda Hotel. O'Hagan continued the grand tradition of the hotel up until the
Second World War, when business declined and he sold the hotel in 1941. Since that period the hotel has had a succession of owners but has continued to operate as a hotel with accommodation facilities. The hotel has undergone few alterations over the years with the exception of the removal of the second-class accommodation wing and other outbuildings in 1970. It still remains the only hotel in the town of Babinda and dominates the commercial centre of Babinda. == Description ==