Interview with Lyndall Curtis
ABC Radio, AM Program
20 April 2010
SUBJECTS: Health and hospitals reform
TREASURER:
Australians have been crying out for reform for a long time and it is a once in a generation opportunity to achieve that today.
CURTIS:
You've been travelling around talking to State Treasurers ahead of this meeting. How receptive have they been to your message that if they don't sign up they will eventually run out of money?
TREASURER:
Well, I think State Treasurers understand that we have to make the system financially sustainable for the long-term. The Intergenerational Report points to the fact that health will consume the entirety of many State Budgets from 2035 onwards, so -
CURTIS:
And did that figure scare them enough?
TREASURER:
Well, State Treasurers and State Premiers have been talking to Prime Ministers and Federal Treasurers for years about the need for fundamental reform.
Fundamental reform must occur so the system is financially sustainable, so that it's cost efficient, so that we end the waste and duplication, and deliver the quality outcomes that Australians are crying out for.
CURTIS:
Western Australia and Victoria are still adamant they won't hand over a third of their GST money. Do you absolutely commit to not raiding the GST for future priorities - if you need to - if they do make this deal?
TREASURER:
Well, the allocation of one third of GST money is absolutely fundamental to the reforms that we are putting in place to ensure that the Commonwealth has a dominant role in financing the system. So that's a fundamental reform.
I think Australians when they go into the shops and pay their GST like to know that 33 cents in every dollar of GST paid is going to their health system. This will provide the certainty that the State Premiers and State Treasurers have been crying out for for years.
CURTIS:
But if they agree to that, will you commit to not raiding the rest of the GST, or other bits of the GST, to fund things as you see fit?
TREASURER:
Well, we've already said that, but one third of the GST being allocated to the provision of health services, to doctors and nurses at the frontline, is absolutely fundamental.
CURTIS:
But if the States commit to tipping their GST money into a pool while still retaining control of it, doesn't that meet the same objective? Aren't you just talking about accounting measures?
TREASURER:
Well, I'm not going to pre-empt the negotiations, but what is absolutely fundamental from the Federal Government's point of view - and goes to the very heart of these reforms - is that money allocated for health goes straight to the front line and is spent in a cost efficient way, and in a way so that it held accountable, so Governments are held accountable for that expenditure.
CURTIS:
And does the Commonwealth absolutely need to control that GST money?
TREASURER:
Look, I'm not going to go into the negotiations, but it's absolutely fundamental to this reform that a third of GST money is allocated to health and is spent on health in a cost efficient way.
CURTIS:
The Commonwealth has put billions of dollars on the table for health funding. Kevin Rudd tipped another $1.2 billion onto that table yesterday. Is there any more in the kitty to entice the Premiers today?
TREASURER:
Well, these are fundamental investments which go to the core of ensuring quality in the system, but as I said before we can't make those investments unless we get the fundamental reforms. So the money follows the reform. But we believe that these additional resources are affordable within our strict Budget rules.
CURTIS:
Was yesterday's effort the last effort?
TREASURER:
I'm not going to pre-empt the negotiations today, but what I can say is that we have made a very fair and balanced offer to the States.
CURTIS:
How will you fund that money?
TREASURER:
Well, this will be accounted for in our May Budget which will be brought down in a couple of weeks time. We've done the hard yards over two Budgets to find the necessary savings to fund important national priorities over two Budgets - and we'll do it again.
