Economy
Still no answers on RHH money
Royal Hobart Hospital
Exactly How Much GST Will Tasmania Lose?
The Tasmanian Greens today continued their pressure for State and Federal Labor to renegotiate the Royal Hobart Hospital funding deal to ensure that the $340 million supposedly secured by Andrew Wilkie was not subject to the national GST carve-up.
Greens Health spokesperson Paul O’Halloran, who first exposed the ramifications of the deal in State Parliament on Wednesday, said it was still not clear how much of the $340 million would be deducted from Tasmania’s GST allocation as a result of the deal.
“The Premier has confirmed that the Royal Hobart Hospital funding was not exempted from the Commonwealth Grant Commission’s fiscal redistribution process, which means that part of the Tasmania’s GST allocation will be withheld,” Mr O’Halloran said.
“The still-unanswered question is how much GST money Tasmania will lose as a result of this deal? Also what is the exact formula by which this be calculated?”
“If state and federal Labor renegotiated this deal and agreed to quarantine the funding, it could free up more money in the State Budget and help alleviate the current funding crisis.”
“Clearly this situation has serious ramifications for the State Health Budget and the challenges it faces in providing services, especially considering that the State is locked into spending all $225 million of its share in the redevelopment.”
“Andrew Wilkie announced this deal in with great fanfare and self-congratulation, but now he too seems unable to answer exactly how much money Tasmania will actually receive and how much will be withheld.”
“The Tasmanian public have been under the impression that this was all new money. Those involved in the original negotiations owe it to the people of Tasmania to clarify this situation, not offer vague reassurances.”
“We need to remember that this deal committed the State Government to spending $225 million dollars over six years, right at a time when reduced revenue is impacting on health services around the state.”
Below: Text of the Question asked by Greens Health spokesperson Paul O’Halloran MP in the House of Assembly.
Paul O’Halloran MP to the Premier (& Treasurer) Wednesday 23 November 2011
Last year a very well publicised deal was made to secure Commonwealth funding for the Royal Hobart Hospital re-development, between the Commonwealth and the Federal Member for Denison.
The redevelopment money was a total of $565 million, in Commonwealth and state money. The Commonwealth contribution is $340 million, most of it ($307 million) due for payment in 2010-11. (The state contribution is $225 million, due to be paid over six years from 2010-11 to 2015-16.)
Premier, can you confirm that when this deal was negotiated, that these federal negotiations did not include an exemption for the Commonwealth’s $340 million contribution from the Commonwealth Grants Commission’s process of fiscal redistribution?
Is it a fact that Under the Grants Commission system, any money one state gets that the others don’t is taken back in the form of reduced GST revenues. And further, that this money is then redistributed to all states and territories according to their GST entitlements.
Premier, can you please detail to this House exactly how much of this Commonwealth contribution of $340 million you expect to see once the redistribution has been factored in? Has it impacted on the States current GST revenues and subsequently, the current health budget situation? Will it impact on future State Budgets? Is it too late to negotiate to have this exemption put in place, and have you taken steps to do so?
• Earlier on Tasmanian Times, Andrew Wilkie: Breathtaking, Lara
• ABC Online: More cuts to Launceston General Hospital
The Launceston General Hospital’s Acute Medical Unit is the latest casualty of heavy health budget cuts.
The unit was to provide specialist care and ease pressure on the emergency department but it has been put on the backburner until 2012-2013 to save $3 million.
The hospital has to save $28 million this financial year as part of state wide health cuts.
Launceston General Hospital’s Director of Medicine, Dr Alasdair MacDonald says the delay will have an impact on the hospital.
“However, I don’t expect it will be able to take direct admissions of triage through category three and four patients and allow them to bypass the emergency department,” he said.
“We’d still hope to take those patients relatively quickly out of the emergency department but not bypass it.”
Dr MacDonald says staff throughout the hospital are doing their best to deal with the changes but it’s tough.
“It is difficult to see the morale of my colleagues, both the medical, nursing and allied health and other staff in the hospital affected by these changes and that is a difficult thing to negotiate and we need to work very hard to keep morale up.”
The Nursing Federation is warning that shedding more nurses at the Launceston General Hospital will affect patient care.
The LGH also confirmed yesterday that 37 contract nurses have not had their contracts renewed and will lose their jobs by Christmas.